Making funeral arrangements in advance is important to many people who don’t want their relatives to bear the financial strain when they pass away, however, research has shown that not all pre-paid funeral plans are clear about costs.
Consumer group Fairer Finance has revealed that the families of some individuals purchasing pre-paid funeral plans may be faced with extra costs when the person dies.
James Daley, managing director and founder of Fairer Finance, commented: “A growing number of customers are likely to be let down when their plan is claimed on, with some providers passing on significant extra costs to families.”
He added that many individuals – often vulnerable people – were found to feel pushed into purchasing a plan by over-zealous sales calls; according to the research, around two million people aged over 50 and contacted by sellers felt pressured to buy a plan. Concerns were also expressed that client money was not always being looked after properly.
In light of the findings, the organisation has called for better regulation of the market and said that there is significant evidence that mis-selling is taking place in some instances. Fairer Finance warned consumers that prepaid funeral plans are not subject to the same regulation and protection as insurance products.
By introducing enhanced voluntary regulation, switching the voluntary regulator for a statutory alternative and bringing the prepaid funeral plan industry under full Financial Conduct Authority regulation, a potentially vulnerable consumer base could be better protected and company conduct could be improved, the organisation suggests.
At Opals, cost transparency is key – contact us today for a funeral plan in Berkshire or elsewhere that’s tailored to you.