If you’re thinking of buying a funeral plan, you should be aware of the new regulations that will come into effect from 2023 onwards. Funeral plans will now be regulated by the Financial Conduct Authority (FCA), which means that providers will need to adhere to strict rules and regulations.
What are funeral plans?
Funeral plans are a way to prepay for your funeral expenses. By paying a lump sum or making regular payments, you can ensure that your funeral expenses are covered in advance. This can help ease the financial burden on your loved ones when the time comes.
What are the new regulations?
From 29th July 2022, funeral plan providers will need to be registered with the FCA. From 29th July 2023, all funeral plans will be regulated by the FCA. This means that providers will need to adhere to strict rules and regulations to protect consumers.
The new regulations will require funeral plan providers to:
- Hold sufficient funds in trust to cover the cost of the funeral.
- Provide clear and concise information about the funeral plan and its costs.
- Provide clear cancellation rights and refund policies.
- Ensure that funeral plans are marketed and sold fairly and transparently.
- Provide clear information about the funeral director and their services.
What does this mean for consumers?
The new regulations are designed to protect consumers from unscrupulous funeral plan providers. By ensuring that funeral plans are regulated by the FCA, consumers can have confidence that their funeral plan provider is adhering to strict rules and regulations.
Consumers will also benefit from greater transparency and clarity about the costs and services provided by funeral plan providers. This will help consumers to make informed decisions about which funeral plan provider to choose.
What should you do if you already have a funeral plan?
If you already have a funeral plan, you do not need to take any action. Your funeral plan provider will be required to adhere to the new regulations from 2023 onwards.
However, it is always a good idea to review your funeral plan periodically to ensure that it still meets your needs and requirements.
The new regulations regarding funeral plans from 2023 onwards are designed to protect consumers and ensure that funeral plan providers adhere to strict rules and regulations. By being aware of these regulations, consumers can make informed decisions about which funeral plan provider to choose and have confidence that their funeral plan is regulated by the FCA.
If you’re thinking of buying a funeral plan, make sure that you choose a provider such as Asian Funeral Home who use a regulated provider, meaning that it is registered with the FCA and that adheres to the new regulations. This will help ensure that your funeral plan meets your needs and provides the financial security and peace of mind that you and your loved ones deserve.