Funeral Plans: What They Cover and How They Are Regulated
Last checked November 2026. Offers and rules change: confirm with the provider before you rely on them.
A prepaid funeral plan lets you pay now for a funeral director's services later. Since 29 July 2022 every firm selling or running these plans in the UK must be authorised by the Financial Conduct Authority (FCA), so the first step is always to check the provider on the FCA register.
How a funeral plan works
You choose a package and pay for it, either in one lump sum or in instalments. The provider puts your money into a trust fund or a whole-of-life insurance policy. When you die, the money is used to pay the funeral director for the services listed in your plan.
The appeal is simple: you fix what is included, take a job off your family's hands at a hard time and tell them what you wanted. The details, though, vary a good deal between plans.
What regulation changed in 2022
Before 29 July 2022, funeral plans were largely unregulated and some customers lost money when providers failed. Now:
- Only FCA-authorised providers, and their appointed representatives, may sell or administer plans. Check any firm on the Financial Services Register.
- Cold calling is banned. No genuine provider should ring or knock uninvited to sell you a plan.
- Providers may not pay commission to the intermediaries who sell their plans.
- If you have a complaint you cannot settle with the provider, you can take it to the Financial Ombudsman Service free of charge.
- If an authorised provider goes out of business on or after 29 July 2022, the Financial Services Compensation Scheme (FSCS) may protect you, including for plans bought before that date. The FSCS says it will first try to arrange a replacement plan and otherwise pays compensation, up to its limit of £85,000 per person per firm at the time of writing (November 2026).
What a plan usually covers, and what it does not
| Usually included | Often not included, or only partly |
|---|---|
| The funeral director's professional fees | Burial plot and grave-digging fees |
| Collecting and caring for the person who has died | Flowers, order-of-service sheets, newspaper notices |
| A coffin of the type named in the plan | Catering and venue hire for the wake |
| A hearse, and sometimes a limousine | A headstone or memorial |
| Cremation fees and the minister's or celebrant's fee, in many plans | Collection from a long distance away, or outside normal hours |
The costs paid to other people, such as the crematorium, cemetery, doctor and celebrant, are called third-party costs or disbursements. Ask exactly how your plan treats them. Some plans guarantee them in full; others only promise a contribution, leaving your family to pay any shortfall. Get the answer in writing.
Questions to ask before you buy
- Is the provider on the FCA register, under exactly this name?
- Precisely which services and third-party costs are guaranteed?
- Can I choose the funeral director, and what happens if I move to another part of the country?
- If I pay by instalments, what is the total I will pay, and what happens if I die before the final payment?
- What are the cancellation terms, both in the first weeks and later on, and what fee is taken?
- Is the money held in a trust or in an insurance policy?
Alternatives to a funeral plan
A plan is only one way to deal with the cost. None of these is right for everyone, and we cannot tell you which suits you.
- Savings set aside. Banks will normally release money from a dead person's account to pay the funeral bill when shown the invoice and death certificate, even before the estate is sorted out. A joint account passes to the surviving holder.
- Over-50s life insurance. Pays a fixed cash sum rather than providing a funeral. It has real drawbacks, explained in our guide to over-50s life insurance.
- A simpler funeral. A direct cremation, with no service at the crematorium and a separate gathering later if the family wishes, costs far less than a traditional funeral. Prices vary widely, so compare.
- Help from the state. If the person arranging the funeral gets certain benefits, they may be able to claim a Funeral Expenses Payment in England, Wales and Northern Ireland, or a Funeral Support Payment in Scotland. It rarely covers the whole bill. See also bereavement benefits.
- Simply writing your wishes down. Costs nothing and helps your family greatly. Keep the note with your will; see making a will.
Common questions
Is my old funeral plan safe?
If the provider is authorised by the FCA, the plan is now covered by the rules and protections above. Look the provider up on the register or ring the FCA's consumer helpline. If the provider failed before regulation began, different arrangements apply and you should contact the administrator named in any letters you received.
Can I cancel a funeral plan?
Yes. There is a cooling-off period at the start during which you can cancel and get your money back. After that you can still cancel, but a fee may be deducted. Check the exact terms in your plan documents.
Will the plan cover the whole cost of the funeral?
Only the items listed. Extras, and sometimes part of the third-party costs, fall to your family or your estate.
Where can I get impartial guidance?
MoneyHelper has free guides to funeral plans and paying for a funeral, and Citizens Advice can help with complaints. For what happens afterwards, see our guides to registering a death and Tell Us Once.