The Co-Op has warned that millions are likely to be hit by financial shortfall with over 50’s plans.
Research by Co-Op found that over 50’s plans have an average shortfall of over £1,500 when they are used to fund the cost of a funeral. The research showed that 78 percent of over-50’s plan holders took out their plan, with a view to it paying for their funeral costs. However, 51 percent of those who intended to use their plan to pay for their funeral are unaware there will likely be a shortfall.
Some funeral plans fully guarantee funeral costs, others pay out a cash sum when the individual dies, which may not cover the average cost of a funeral.
With 380,000 UK adults taking out over 50’s plans annually it’s a huge market. It is important to make sure you research the market and buy the cover that is most suited to your needs.
If you would like to read more follow this link to the article in the Funeral Service Times.