Money & later life · UK guide

Pre-paid funeral plans: are they safe now?

Last verified 21 Jun 2026 · Source FCA + MoneyHelper

Funeral plans used to be a wild west — but since 29 July 2022 the Financial Conduct Authority (FCA) regulates them. Providers must be FCA-authorised, your money must be protected, commission selling is banned, and if an authorised firm fails the FSCS covers you. Here’s how to check a plan is safe, what to watch for, and the alternatives worth weighing first.

FCARegulated since Jul 2022
FSCSIf an authorised firm fails
No commissionPushy selling banned
Check firstFCA Register
How to check it’s safe → Can’t afford a funeral?

What FCA regulation changed

A pre-paid funeral plan lets you pay now (lump sum or instalments) for a funeral later, fixing some costs and sparing your family decisions. Since the FCA took over the sector on 29 July 2022, every plan provider must meet real standards:

  • Providers must be FCA-authorised to sell or administer plans.
  • Your money must be backed by a trust or insurance.
  • Commission-based selling is banned (the cause of much past mis-selling) and plans must offer fair value.
  • If your authorised provider fails, the Financial Services Compensation Scheme (FSCS) covers your loss.
  • You can take a complaint to the Financial Ombudsman Service.
The protection only applies to authorised firms

If you buy from a provider that isn’t FCA-authorised, you get no FSCS and no Financial Ombudsman protection — so an existing plan with an unauthorised firm is a real risk. Always check the FCA Register before paying (and check any plan you already hold).

How to check a plan is safe

  1. Check the FCA Register (fca.org.uk) that the provider is authorised — and watch for clone firms copying a real name.
  2. Read exactly what’s included. Especially third-party costs — burial plot, cremation fee, doctor’s/clergy fees, a headstone — which some plans cap or exclude, leaving your family to top up.
  3. Don’t be pressured. Cold calls and doorstep selling are red flags; take your time and compare two or three providers.
  4. Tell your family the plan exists and where the paperwork is — a plan no one knows about can’t be used.

The alternatives worth weighing

OptionWorth knowing
Pre-paid funeral planFixes some costs and eases decisions — but check it’s FCA-authorised and what’s excluded.
Save into an easy-access accountSimple and flexible; the money stays yours and can be used for anything if plans change. You carry the risk that costs rise.
Over-50s life insurancePays a lump sum on death — but you can pay in more than it pays out if you live a long time, and it’s not ring-fenced for the funeral.
Leave it to the estateNo plan; the funeral is paid from your money/estate. Banks often release funds to pay a funeral bill directly.
If money is tight now

You don’t need an expensive plan for a dignified send-off. A direct cremation is the lowest-cost option, and there’s real help if you can’t afford a funeral — see our help with funeral costs guide (Funeral Expenses Payment, Children’s Funeral Fund, and the council’s public health funeral duty).

Do this now
  1. Check the FCA Register for any plan you’re considering — or already hold.
  2. Get the full list of what’s included/excluded in writing, especially third-party costs.
  3. Compare against saving or your estate, and get free guidance from MoneyHelper before committing.

Free help: MoneyHelper · the FCA (fca.org.uk) · Citizens Advice 0800 144 8848. SortedUK is not FCA-regulated — this is general information, not financial advice.

Source verification Primary sources: the Financial Conduct Authority (regulating the funeral plans sector; check your provider is authorised) and MoneyHelper. Last verified 21 June 2026. Confidence: High — the FCA has regulated funeral plan providers since 29 July 2022; providers must be authorised, customer money must be backed by trust or insurance, commission selling is banned and plans must offer fair value; customers of authorised providers are protected by the FSCS if the firm fails and can use the Financial Ombudsman; buyers of plans from unauthorised firms have neither protection. SortedUK is independent and not FCA-regulated — this is general information, not financial advice. Always check the FCA Register and take guidance for your own decision.

Funeral plans — common questions

I bought a plan years ago — is it still protected?

Check whether your provider is now FCA-authorised on the FCA Register. Authorised providers give you FSCS and Ombudsman protection; if your provider didn’t become authorised, get advice from MoneyHelper about your options, as protection may differ.

Does a plan cover everything?

Not always. Many plans cover the funeral director’s services but cap or exclude third-party costs like the burial plot, cremation fee or a headstone. Always get the full inclusions/exclusions in writing before you buy.

Is an over-50s plan the same as a funeral plan?

No. An over-50s life insurance policy pays a cash lump sum on death (which may be less than you paid in if you live a long time) and isn’t ring-fenced for a funeral. A pre-paid funeral plan buys specific funeral services. Compare carefully.

What if I can't afford to plan ahead at all?

That’s fine — a meaningful funeral doesn’t have to be expensive. A direct cremation is the cheapest option, and there’s government and council help if money is tight. See our help-with-funeral-costs guide.

Plan ahead — but only with a plan you can trust.

Check the FCA Register, read the small print on third-party costs, and weigh the alternatives. Want help deciding what’s right for you?

Ask Sorted to help → Help with funeral costs