Co-op launches offer for those hit by unexpected £1500 funeral bill

02 July 2018

• Over 50’s policies leave families with an average financial shortfall of £1,525 on funeral costs
• Majority of over 50’s policy holders unaware these policies may not fully cover their funeral bill
• Co-op launches discount of up to £400 off funeral costs to support those impacted

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 funeral*** 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 entitlementon 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 visit coop.co.uk/over50s

ENDS

Notes to editors – for media purposes only, terms and conditions apply

*Co-op Funeralcare internal business information based on six months’ data in 2017. Analysis done on all funerals conducted by Co-op Funeralcare that came from a Funeral Benefit Option on a guaranteed over-50’s plan

** Research among 1,000 over 50’s plan holders conducted by YouGov on behalf of Co-op Funeralcare

*** Offer applies on Simple, Classic, Traditional and Woodland funeral

****Terms and conditions apply. Fully terms and conditions available at coop.co.uk/over50s

Media Contacts:

Lauren Pogson
Senior PR Manager
Email: Lauren.Pogson@coop.co.uk
Phone: 07702 505626

Sarah Pyatt
Press Officer
Email: Sarah.pyatt@coop.co.uk
Phone: 07850 002 312

About The Co-op:

The Co-op, one of the world’s largest consumer co-operatives, with interests across food, funerals, insurance, electrical and legal services, has a clear purpose of championing a better way of doing business for you and your communities. Owned by millions of UK consumers, the Co-op operates a total of 3,750 outlets, with more than 70,000 colleagues and an annual turnover of approximately £10 billion.

Home to the UK’s leading funeral provider, Co-op Funeralcare conducts almost 100,000 funerals annually across over 1,000 funeral homes. Combined with its leading legal services business, the Co-op is also a national provider of later life products and services ranging from funeral plans, through to wills and probate.