Is my money safe in a prepaid funeral plan?
Your payments are either put into a trust fund or invested into an insurance policy. The Financial Conduct Authority (FCA) safeguard money that is put into trust funds and policies, however, they don’t regulate funeral plans.
If you want to ensure that your money is protected, you might want to check whether the provider you plan to buy funeral insurance cover from is signed up to the Funeral Planning Authority (FPA). The FPA pledge that in the event of a provider going bust, it will pay towards ceremonies covered by funeral plans.
You could also protect your money by paying on your credit card. All credit card payments over £100 are protected by Section 75 of the Consumer Credit Act 1974.