Prepaid Funeral Plan: What to Check Before You Buy

In short: A prepaid funeral plan has been regulated by the Financial Conduct Authority (FCA) since 29 July 2022, so the provider must be FCA authorised, and the FSCS can protect up to £85,000 per eligible person if a provider fails (as at November 2026). Even so, plans do not always cover every cost, so check what is included, the cancellation terms and who the provider really is.

How a prepaid funeral plan is regulated

Since 29 July 2022 every prepaid funeral plan provider has had to be authorised by the FCA. The FCA took on responsibility for regulating pre-paid funeral plans from that date. MoneyHelper describes a plan as paying in advance for part of a funeral, either as a lump sum or in instalments, and says the provider must look after your money and use it responsibly.

Regulation changes what you can rely on when you buy a prepaid funeral plan. According to the FCA and MoneyHelper, you can complain to the Financial Ombudsman Service, and the Financial Services Compensation Scheme (FSCS) may compensate you if a provider fails. The FCA also says firms must be authorised and have permission for the right activities, which is why checking the register matters before you pay anything.

This guide is general information. It does not recommend any provider or product, and the rules can change, so check the FCA and MoneyHelper pages listed under our sources for the latest position. If you are comparing ways to pay for a funeral generally, our guide to who pays for a funeral sets out the options.

Checking the prepaid funeral plan provider

Use the FCA Firm Checker to confirm the firm is authorised for funeral plans before you sign. The FCA’s steps are to search for the firm by name, select funeral plan, confirm the firm is authorised, and read the section called what this firm can do. The firm should have permission to enter into a funeral plan contract with you and to administer and process claims on an existing plan.

Three further checks the FCA highlights:

• The firm that sells you a plan may not be the provider. Check your paperwork or ask the seller who the provider is.
• If the firm is listed as an appointed representative or introducer appointed representative, check with the principal firm to see what services it can offer.
• If a firm is not authorised, you would not have access to the Financial Ombudsman Service, and the FCA says you would not have FSCS protection if the firm went out of business, which it says means it is unlikely you would get your money back.

If you are looking at an old plan and cannot find the provider on the register, the FCA says the provider has either transferred its plans to an authorised provider or wound down. The National Association of Funeral Plan Providers runs a tracing service for plans held by its members.

What a prepaid funeral plan usually covers

A plan usually covers the funeral director’s services and either a cremation or a burial, but the exact content depends on the plan type. MoneyHelper says plans pay for some funeral costs, such as the funeral director’s services for arranging the funeral and caring for the person who has died, plus the specific costs of either a burial or a cremation.

Which? describes three common types:

• Direct plans: usually cover the cremation or burial, transport and a basic coffin, with no attended service. Our guide to direct cremation explains this option.
• Traditional plans: usually cover collection, care and transport, a funeral director, hearse and limousines.
• Hybrid plans: cover collection, transport, care and cremation plus a smaller attended service, often with limits on guest numbers, length or timing.

Before you choose any prepaid funeral plan, ask for the plan’s written description of what is included, because names such as basic or standard do not mean the same thing at every provider. It is also worth checking whether the person who died already had a plan or an insurance policy, because GOV.UK advises checking this before making arrangements.

What a prepaid funeral plan may not cover

No plan is guaranteed to cover everything, and MoneyHelper says even the best plans will not cover all costs, so relatives may need to pay extra. Which? lists items that are commonly left out: burial plots, flowers, the wake and catering.

The most important distinction to ask about is how third-party costs are handled. Which? explains that guaranteed plans cover items such as cremation, burial and minister’s fees, while contribution plans pay only a fixed amount and the family must meet any remainder. Third-party costs are also called disbursements.

Other things to check:

• Extra charges, such as returning ashes, collection outside normal hours, or a larger coffin.
• Limits on where the plan applies, such as the area a funeral director covers or the days of the week available.
• What happens if you move house or the funeral director in your area changes.
• For burial plans, whether the grave plot and the cemetery’s interment fee are included. Our guide to burial and grave plot costs explains these.

If a plan was in place when the person died, GOV.UK says the Funeral Expenses Payment can include up to £120 for items the plan does not cover (as at November 2026). Our guide to funeral costs and the Funeral Expenses Payment has more detail.

Cancelling a prepaid funeral plan

The FCA said customers would get a full refund if they cancel within 30 days of purchase, and after that they pay only a reasonable charge. That description comes from the FCA’s announcement of its funeral plan rules, which it published in November 2021 before regulation began, so ask any provider to confirm its current terms in writing.

Points to check about a prepaid funeral plan before you commit:

• The exact cancellation charge after the first 30 days, and whether it changes over time.
• What happens to your money if you stop paying instalments. MoneyHelper warns that a plan may lapse and be cancelled if you miss payments, and that money in it may stop growing.
• What happens if you die soon after taking out the plan. The FCA described a full refund being offered instead of a funeral where the plan holder dies within two years, so ask how this works with your provider and whether it applies to you.
• What a refund after cancellation would be, and how long it would take.

MoneyHelper also notes that paying in instalments adds fees and interest compared with a lump sum, so ask for the total you would pay under each option.

If the provider fails: FSCS protection

If an authorised provider fails, the FSCS can arrange a like for like plan or pay compensation of up to £85,000 per eligible person, per firm. The FSCS page says the provider must be regulated by the FCA and must have gone out of business on or after 29 July 2022, and that plans bought before that date are included. The FSCS says it calculates compensation using what the same plan would cost on the market today.

If the firm behind your prepaid funeral plan fails, the FSCS says:

• The provider should have arrangements for a new regulated provider to carry out your plan.
• The FSCS will usually offer a like for like or similar replacement plan, and you can take compensation if you decline or none can be arranged.
• In most cases you will not need to make a claim.

MoneyHelper adds that a replacement provider may offer a plan at extra cost or on different terms, and you can reject it and receive some money back from the insolvency, which is likely to be less than you paid. If the plan holder dies after a provider fails, the FSCS says to contact the named funeral director first and then tell the FSCS. If a firm is not on the FCA register it must not sell or carry out funeral plans in the UK, so FSCS cover applies to authorised firms only.

Questions to ask before you buy

Ask every question below about any prepaid funeral plan in writing and keep the answers with the plan paperwork.

1. Which firm is the provider, and is it on the FCA register with permission to enter into funeral plan contracts?
2. Are cremation or burial fees and minister’s fees guaranteed, or is the plan only a contribution towards them?
3. What extra charges could apply, and when?
4. What is the cancellation charge after 30 days?
5. Which funeral directors are covered in my area, and can I change the funeral director later?
6. Are there limits on the day, time, length of service or number of guests?
7. If I pay in instalments, what is the total cost, and what happens if I miss a payment or die early?
8. Who will my family contact, and what paperwork will they need?

Tell family where the plan documents are kept and who the provider is, because the FCA notes that the seller may not be the provider. A solicitor or an adviser from MoneyHelper or Citizens Advice can help if you are unsure. For the general cost of funerals, see our guide to the average funeral cost in the UK.

Scotland, Wales and Northern Ireland

FCA regulation and FSCS protection apply to a prepaid funeral plan from an authorised firm operating in the UK. The FSCS page says firms not on the FCA register must not sell or carry out funeral plans in the UK. The funeral practicalities, such as cemetery fees and the help available from the government with funeral costs, vary by nation. Our guide to low cost funeral options sets out the differences in the funeral payment schemes.

All figures here are dated November 2026 unless stated, and they come from official or independent sources listed below.

Frequently asked questions

Are prepaid funeral plans regulated?

Yes. The Financial Conduct Authority has regulated pre-paid funeral plans since 29 July 2022. A provider must be FCA authorised, with permission to enter into funeral plan contracts, and you can check the firm on the FCA Firm Checker before you pay.

How do I check a funeral plan provider is authorised?

Search for the firm on the FCA Firm Checker, select funeral plan, and confirm it is authorised. Read what this firm can do to see it can enter into plan contracts and process claims. The seller may differ from the provider, so check who that is.

What happens if a funeral plan provider goes bust?

If an authorised provider fails, the plan should be transferred to a new regulated provider, and the FSCS usually offers a like for like replacement. If that is declined or impossible, you can receive compensation of up to £85,000 per eligible person, per firm.

Does a prepaid funeral plan cover everything?

Not always. MoneyHelper says even the best plans will not cover all costs. Items such as burial plots, flowers, catering and some third-party fees may be excluded, and contribution plans pay only a fixed amount. Ask for a written list of inclusions.

Can I cancel a prepaid funeral plan?

The FCA said customers get a full refund if they cancel within 30 days of purchase, and after that pay only a reasonable charge. Terms vary, so ask your provider for the exact cancellation charge and refund process in writing before you commit.

What if the plan provider is no longer on the FCA register?

The FCA says the provider has either transferred its plans to an authorised provider or wound down. Check your paperwork for the original seller, and the National Association of Funeral Plan Providers runs a tracing service for plans held by its members.

Can the Funeral Expenses Payment help if there is a plan?

Yes, if you qualify. GOV.UK says that if the person had a pre-paid funeral plan, the Funeral Expenses Payment can include up to £120 for items the plan does not cover. You usually need to receive certain benefits and apply within 6 months.

Official sources

• FCA: Funeral plans
• FCA: FCA confirms plans to protect new funeral plan customers from July 2022
• FSCS: Funeral plans protection
• MoneyHelper: Rules and regulation for a pre-paid funeral plan
• MoneyHelper: Planning and paying for your funeral
• Which?: Funeral plans explained
• GOV.UK: Arrange a funeral
• GOV.UK: Funeral Expenses Payment

This page is general information, not legal, medical or financial advice. The Care Panel is an independent guide and is not part of any government body or care provider. Last checked 9 November 2026.

Related: Direct cremation explained · Cremation costs in the UK · Who pays for a funeral

Reviewed by The Care Panel team on 9 November 2026. This guide is general information about care in England, not legal, medical or financial advice. Rules and rates change; check with your council or an adviser before making decisions.