Not all prepaid plans allow you to choose any Funeral Director., despite their paperwork stating you can.
Until July 2022 the prepaid funeral plan market was not regulated by the FCA and the current strict regulations did not exist.
Prepaid plans were being commission sold by some outlets such as solicitors, banks, estate agents and other services that have no product knowledge of the funeral industry. Plans were being sold with shortfalls at inception and plans were being sold on the promise you can choose your funeral director.
Some plans cannot choose any funeral director but are tied to that products network of funeral directors. This often excludes independently owned funeral directors on the basis ‘they didn’t meet our criteria’, which usually translates to ‘we don’t own them’.
These plans will, at the time of need, offer you the option to transfer the plan to your local independent, at a heavy reduction in the plan’s value. Often as independents, we will aim to discount or reduce things to meet the plan. Sometimes this isn’t too difficult as these plans were much mroe expensive than an independent would be anyway!
The conclusion to all of this is that plans were often mis-sold on the basis you had more choice than you realised and often priced short in termsof disbursements (crematoria, doctors and church fees) as those selling the plan didn’t have local cost knowledge or in fact any cost knowledge and used the term ‘contribution towards disbursements’.
The only rule, we believe, the FCA or CMA should have introduced is that all prepaid funeral plans be purchased from the funeral director you intend to provide the end service when it’s needed. Any funeral home of any reasonable calibre, will offer prepaid funeral plans. Why is that? : Because with the regulation there have been credit checks, background checks and criminal record checks. If a funeral home doesn’t offer prepaid plans then it is very possible they would not pass these checks, which raises the question, ‘Should they be a funeral director at all?’ in a position of trust.
So, what do you do if your plan is with a group or corporation that limits your choice? Speak to them and ask about transferring to a product that allows your local independent to provide the plan or speak to your lcoal independent about their plans and they may very well make every effort to ensure you are properly covered for the plan and with them.
This includes traditonal and pure cremation (also known as direct cremation) services.
We offer Eccelesiastical Funeral plans which have been long established and are backed by the prudential. Call or email to discuss your needs and if transfer from another provider is necessary to ensure you can have your funeral service conducted by a long established (197 years) local organisation run by local people who have exceeded ths neccessary checks.
Some potential issues with Pure Cremation include:
- Limited services: Pure Cremation’s services are only guaranteed after the full amount is paid or at least 24 monthly installments are made. If the deceased dies within the first 24 months, services are not guaranteed unless the death was an accident.
Cremation location: Cremations take place at one of two crematoriums, which may not be local.
No ceremony: Pure Cremation does not include a ceremony at the crematorium.
Memorial planning: Families must arrange memorial services on their own, which can be difficult during a time of grief.
Limited opportunity for closure: Some may not find the same level of emotional healing from a direct cremation as they would from a formal funeral service.
Plan risk: If payments are not kept up, the plan is at risk and has no cash-in value.
Limited advice: ref paperwork and local registrar protocols
