Funeral plans provide people with a promise that the costs of a funeral will be met on their death. For certain religious groups, a funeral plan will also ensure that a burial will be carried out according to the observed religious practice.
Funeral plans are regulated by the Financial Conduct Authority unless they are covered by an insurance contract or established under trust and meet certain conditions. One condition, is that an Actuarial Valuation of the assets and liabilities of the trust must be obtained at least once every three years.
Funeral plans that have registered with the Funeral Planning Authority - a self-regulatory body, are required to obtain an Actuarial Valuation every year.
Funeral plans may be paid for by a lump sum payment, or by regular instalments. Trustees or providers will need to ensure that the contributions charged are sufficient to meet the future funeral costs and should review this regularly. A regular review should also be carried out to evaluate the adequacy of assets held to meet the future liabilities.
Nigel Sloam & Co provides a full range of actuarial services to funeral plan providers, trustees and charitable groups, including advice on contribution rates and regular actuarial reviews.