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 2 July, Co-op will be offering families whose loved one had an active over 50’s 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 company revealed that, on average, families using an over 50’s policy to cover funeral costs face a financial shortfall of £15,251.
Across the UK over 380,000 over 50’s policies are taken out annually, with 78 percent of customers taking these policies out to cover funeral costs.
Research conducted by the Co-op found that 51 percent of those who intended to use their over 50’s policy to pay for their funeral are unaware there may be a shortfall, and 21 percent don’t know how their funeral cost would be met if their policy didn’t cover the bill in full.
The new offer 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 50’s policy in place when they died, the funeral provider is offering a discount of £400 off the eventual cost of policy holders funeral whereas a £300 discount will apply for non Co-op members.
Matt Howells, managing director of Co-op legal and later life planning, said: “Earlier this year we highlighted a worrying trend which is leading to thousands of families being hit with an unexpected bill of £1,500 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.”