So how does the company you pay your money to ACTUALLY make money itself?
Pay now, die later, to put your mind at rest 100% of the money that you pay for your plan is paid into an independently audited Trust and when combined with all the other plan holders’ funds this sum reaches £millions and these funds are always placed in guaranteed or low risk investments which adds significant amounts of interest and dividends to the “pot” each year which is in turn then itself reinvested and the total within the Trust therefore grows and grows year after year as many clients will not need actually a funeral for decades.
In addition clients paying over 60 or 84 months always pay an admin charge on top of the standard fee (which is included in their repayments and which is quoted at the outset) and all of this is then paid into the Trust and invested also which swells the pot even further.
The company fees are then taken from the “profit” made on those investments - NOT from the fee you pay in.
Only funeral directors registered with the FPA are used and all of them charge the Trust significantly lower fees for their services than they do direct to the public because;
A) They are being given funerals to service that they have not had to pay a penny for in procuring.
B) Are given 100s of instructions a year by the Trust and as with all business there is always a discount given for buying in bulk.
The combination of investment profit and paying Funeral Directors a pre-agreed much lower sum than they charge direct enables the plans we recommend to run successfully in FULL compliance with article 60(1) of the Financial Services and Markets Act 2000 (regulated activities) order 2001.
The Trust is held within an independent account overseen by independent Trustees and independently audited every year to ensure that your money is always safe and everything that you expect to be delivered in the form of service outlined in your plan will be exactly that provided when it is needed.
You can relax when choosing a plan recommended to you by the Funeral and Estate Planning Advice Service as we have done all the due diligence up front on your behalf so you know that you are getting the lowest priced plans available from a provider that ALWAYS FULLY OUTLINES exactly what is covered and what is not and puts 100% of the fees you pay into an independent Trust 100% of the time.
Plans not policies
We are very concerned with the increasing amount of clients that talk to us about how they thought that they had bought a pre-paid funeral plan when in fact what they had been provided with was just a simple life insurance plan.
Life insurance plans are not pre-paid funeral plans because:
a) No funeral Director is appointed
b) There is usually a fixed sum payable that cannot then guarantee to pay a funeral Director’s fees when required in the future
Many clients are reporting that when their partner died the payment from the insurance company only came to £1500 or £2000 when in fact the Funeral Director’s cost came to over £4000.
This puts unnecessary financial and emotional strain on those left behind having to fund the shortfall – the very thing the deceased was trying to prevent in the first place.
A correctly appointed pre-paid funeral plan does the following:
a) Designates a local Funeral Director
b) Guarantees to cover all the Funeral Director’s services whenever they are needed
c) Protects the premium paid in an independently audited Trust so that it’s safe
d) Guarantees to appoint an alternative Funeral Director should the one originally appointed retire or close down.
It is our mission to ensure that all clients are correctly advised and are recommended the most cost effective pre-paid funeral plan available in the UK all times.
Our advice to you is always FREE OF CHARGE at ALL TIMES.