Co-op has launched an offer to provide financial support to families who face a shortfall on funeral costs due to over 50’s policies.
With effect from 2nd July, Co-op will be offering families whose loved one had an active over 50s policy in place when they died a discount of up to £400 off the cost of a funeral.
The support has been put in place after business data from the Co-op revealed that, on average, families using an over 50’s policy to cover funeral costs face a financial shortfall of £1525.
Across the UK over 380,000 over 50’s policies are taken out annually, with the majority (78%) of customers taking these policies out to cover funeral costs. However unlike some funeral plans such as the Co-op’s which fully guarantee funeral costs, over 50’s policies pay out a cash lump sum when the individual dies with no guarantee that this will cover the funeral cost in full.
Research conducted by the Co-op found that over half (51%) of those who intended to use their over 50’s policy to pay for their funeral are unaware there may be a shortfall, and a fifth (21%) don’t know how their funeral cost would be met if their policy didn’t cover the bill in full.
The new offer from the Co-op has been launched to provide over 50’s policy holders and their loved ones with additional support to help address any potential shortfall on future or immediate funeral costs.
For Co-op members who had an active over 50s policy in place when they died, the UK’s leading funeral provider is offering a discount of £400 off the eventual cost of policy holders funeral3 whereas a £300 discount will apply for non Co-op members. Both policy holders and arranging clients can apply for the discount by completing a certificate of entitlement4 on the Co-op website coop.co.uk/over50s.
Matt Howells, Managing Director of Co-op Legal and Later Life Planning, comments:
“Earlier this year we highlighted a worrying trend which is leading to thousands of families being hit with an unexpected bill of £1500 on average after their loved ones over 50’s policy failed to fully cover funeral costs. More often than not, these products, are failing to keep up with the expectations of those who take them out and we’re committed to playing our part to support families impacted by this issue by helping to reduce financial gap so often faced with these policies.”
To find out more about Co-op Funeral plans and the offer visitcoop.co.uk/over50s