1The rule in this chapter ensures that, subject to an initial maximum 2 24-month moratorium period, a customer who chooses to pay for a funeral plan contract in instalments receives the funeral under that contract even if the covered individual dies before the end of the instalment period.

1This section is relevant to any instalment payment funeral plan which requires payments to be made over a period of more than 24 months. This may include a funeral plan contract under which the customer is required to make payments until the covered individual reaches a certain age or on a regular basis until the time of the covered individual’s death.

1This section does not affect the position where a funeral plan contract has been cancelled either by the customer or by the funeral plan provider in compliance with the rules in FPCOB 13.

1The effect of FPCOB 13.2.2R is that the death of the covered individual (other than by reason of an accident) within the moratorium period is treated as a cancellation of the funeral plan contract (unless the customer and firm have agreed for sums outstanding to be paid under FPCOB 13.2.3R). In this case, any instalments paid by the customer must be returned without deduction to the customer or (where the customer is also the covered individual) to their estate.

1A funeral plan provider may agree a moratorium period with a customer of less than 24 months provided that it remains compliant with FPCOB 3.1.6R.