The Fairer Finance consumer group has published a report into pre-paid funerals and concludes that the Funeral Planning industry is not working well for consumers and millions of pounds of consumer’s money could be at risk.
The average cost of a funeral is now £3,900 so it makes sense for many people to plan ahead to ensure there is the money for a funeral for a loved one or themselves.
Telesales companies have been bombarding people with calls about planning their funeral and an estimated six million people over the age of 50 have been contacted.
James Daley of ‘Fairer Finance’ said “the combination of a fast growing market, fuelled by high pressure sales to a potentially vulnerable customer base is creating a perfect storm. “
“A growing number of customers are likely to be let down when their plan is claimed on – with some funeral plan providers passing on significant extra costs to the families”
The people making the calls are usually commission based and charge up to £1,000 per plan sold so obviously that’s a big chunk of the money gone that was expected to pay for the funeral.
This market is basically unregulated and the report findings will be reviewed by The Treasury, the Competition and Markets Authority and the Financial Conduct Authority.
There are reputable companies involved in the funeral planning industry and this can make sense for some people. But do not take up an offer from a cold caller and do your research to find the best plan for your needs and ensure you understand what it includes as it seems that 90% of people taking these plans do not fully understand what they will get. Contact the relevant company directly – to avoid commission going to an agent.
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