New rules come in to force on Friday to regulate the pre-paid funerals market and make sure the companies have sufficent assets to pay for all of the funerals promised.
Pre-pay funeral plans allow someone to pay for their funeral in advance of their death at today's prices and enables them to choose their own funeral exactly as they want it, from the type of coffin to the music played at the service. The plans are particularly popular with older people, as they have the relief of knowing that they are not burdening their children with the expense when they are grieving.
Up to now, the pre-pay funeral plans market has not been regulated, meaning there is no watchdog and if a firm goes bust, consumers are not guaranteed any money back. But from the end of this week, if a funeral plan provider does not meet the requirements set by the FCA, they will no longer be allowed to sell plans or carry out funerals.
