Post Office Funeral Plan Review.
The Post Office Funeral Plan we saw initially is simply an over 50s life insurance policy. The small print says (and I quote directly) “if you stop paying your Over 50’s Life Cover will end and you wouldn’t get anything back.” This is absolutely normal for these types of plans. If you don’t pay within 30 days, you have lost every penny that you pay in. So a simple bank mess up could throw away all those premiums if not resolved within 30 days. And it is really easy to cancel a direct debit after a few years because you have forgotten what it is! Nothing specifically against the Post Office plan – we just don’t like this type of plan at all. But the Post Office did also offer a proper prepaid funeral plan.
UPDATE: from their site 13/3/19 “Pre-Paid Funeral Plan is no longer a product offered by Post Office Money Existing Funeral Planholder who need help should call: 0800 033 4301. Lines are open 24 hours a day, 365 days a year.“
The plans which the Post Office now offer are not what we at the PrePaid Funeral Review consider to be “proper” funeral plans. That doesn’t mean they are no use. The Post Office Funeral Plan (Over 50s version) just produces a specific sum of money to be paid out when you die. It may or may not be enough to pay for your funeral. Paying for your funeral is rather the point in our opinion!
Post Office Funeral Plan.
Provides a cash lump sum when you die to help with funeral expenses.
Age limits 50 to 80.
Maximum death benefit is £21,449 (if you can afford the premiums!)
- You choose the amount payable on death (and hence the premiums).
- Level benefit basis (i.e. no inflation proofing).
- Life cover!
- Terminal illness – fairly oddly for a funeral plan, it will pay out in advance under certain circumstances if the Doctors say you don’t have long to live.
- Guaranteed acceptance.
- No medical screening.
- Guaranteed premium – no increases.
- Double pay out if accidental death after first 12 months.
- Full premium refund if normal death within first 12 months (but will pay out if death is accidental.)
The Post Office Funeral Plan does not cover:
Natural death within first 12 months.
What is the ‘Funeral Benefit Option’ on the life policy?
The Funeral Benefit Option is a benefit available free with Post Office Over 50’s Life Cover. It enables the fixed lump sum death benefit from the Post Office Funeral Plan version of the Over 50’s Life Cover plan to be paid direct to Co-op Funeralcare. It is then used to contribute towards or pay for your funeral.
With a Post Office Funeral Plan, Co-op Funeralcare can record any wishes you may have about your funeral arrangements.
Co-op Funeralcare will make a £250 Contribution towards the cost of your funeral.
How does the Funeral Benefit Option work?
You can select the Post Office Funeral Benefit Option by completing the Application Form and ticking the funeral benefit box. Alternatively, you can select the Funeral Benefit Option over the phone when setting up your plan direct with Aviva Life & Pensions UK Limited, the product provider for Post Office Over 50’s Life Cover.
Prepaid Funeral Review verdict?
There are exceptional circumstances where this sort of plan is right, but they can never be as satisfactory as a proper prepaid funeral plan.