Planning a funeral is stressful and time-consuming. There are various things you need to take into consideration.
It can be daunting taking out a prepaid cremation plan as you want to make sure that the money you've paid for your funeral plan is safe and secure. It'lll give you peace of mind knowing that you can enjoy the rest of your life without worrying about your family picking up the cost of your cremation.
When you take out a prepaid cremation plan, you can be assured that the money is kept safe in our Distinct Funeral Plans Trust. Whether you are covering the cost of your cremation by paying it in instalments or as a one-off payment, we guarantee that your money is protected and safe by the Trust.
Our latest blog will cover prepaid cremations, as well as looking at how safe it is to take out a prepaid cremation plan for a loved one or someone else.
Are prepaid funerals a good idea?
With the price of traditional funerals increasing in the UK, families are looking for simpler and more affordable options. A prepaid funeral plan is an excellent option when it comes to controlling the cost of your cremation.
Prepaid funerals involve paying for the essentials that are required to carry out the funeral. From the cremation to the coffin, you can be assured that you won’t incur any price increases as you’ve paid for the cost of your funeral in advance. Choosing a prepaid funeral plan will save any stress and future financial worries you may have with holding a cremation.
At Distinct Cremations, there are two prepaid funeral options available to choose from. There is the unattended direct cremation plan and the intimate cremation plan. Whichever prepaid funeral plan you go for, we will ensure that your loved one’s life is celebrated in exactly the way you wanted.
What are the funeral regulations regarding prepaid funeral plans?
The regulations regarding prepaid funeral plans in the UK are changing in 2022. Later in the year, the Financial Conduct Authority (FCA) will be regulating the prepaid funeral plans sector.
For now, funeral plans are exempt from regulation under the Regulated Activities Order (RAO). When it comes to how the sector is controlled, it exists on a voluntary basis through the Funeral Planning Authority who has produced a Code of Practice and rules for funeral firms to follow.
With demand for funeral plans increasing, it’s led to concerns about the conduct of some providers, which could cause harm for consumers in the sector. The concerns have led to the introduction of incoming FCA funeral plan regulations coming into effect on 29 July 2022.
Distinct Cremations' application was submitted to the FCA back in November 2021 and our Head of Compliance has been communicating with them regularly throughout the process.
Under the new regulations, consumers will have more protection from funeral providers. Also, the consumer will have access to the Financial Ombudsman Service to make a complaint against the funeral plan provider.
Pros and cons of prepaid funeral plans
There are things you need to consider before making a decision on taking out a prepaid funeral plan. Some people will find a prepaid funeral plan to be a great option, although paying for this type of funeral plan is not for everyone.
Pros of a prepaid funeral plan
Paying for a prepaid funeral plan comes with many benefits as you can play a major role in arranging a funeral for a loved one or for yourself.
Here are some of the pros that come with a prepaid funeral plan:
- You have the option to spread the cost of your funeral or cremation over a set period of time.
- Funeral plans are subject to a "best code of practice", although you need to make sure that when you buy a prepaid funeral plan that the provider is registered with a regulation provider.
- Prepaid funeral plans can save your family money, removing the financial worry that comes with organising a cremation for a loved one.
Cons of a prepaid funeral plan
While a prepaid funeral plan has many benefits for planning a cremation for a loved one, it also has its own disadvantages. The cons of taking out a prepaid funeral plan include:
- Some funeral plan providers do not guarantee the services that are included once you have paid for the prepaid funeral plan
- The FCA does not regulate prepaid funeral plans at the moment, and funeral providers are not registered with the Funeral Planning Authority.
- If you are moving abroad, then you will not be able to use the prepaid funeral plan
It's very important to check that these don't apply to you before purchasing your funeral plan. You can be assured that with Distinct Cremations, everything outlined in the service is guaranteed and that your money is safe within our trust fund.
Are pre-paid funeral plans worth it?
Yes. When you take out a prepaid funeral plan with us, the plan covers the essentials that are needed to carry out a cremation in a crematorium. Not only does a prepaid funeral plan provide flexibility, but it also gives you the financial security to ensure the cremation is carried out as smoothly as possible.
To answer the question regarding “are prepaid cremations safe" is yes. Distinct Cremations are committed to making sure that the prepaid plan you’ve paid for is safe and the money goes towards the cost of you or your loved one’s funeral. Your money is safe and secure within our trust fund, and we will ensure that you one receive a dignified and respectful send-off at one of our crematoria.
Distinct Cremations, and our parent Westerleigh, are one of the largest funeral and cremation service providers in the UK. We have been established for 30 years, own all our crematoria nationwide and each year help around 55,000 families.
If you have any questions regarding the safety of our prepaid cremation plans, you can contact our team of Personal Advisors. A Personal Advisor will assist you with any concerns you may have about taking out a prepaid cremation plan with us.
