Funeral Benefit Option

It's something you should consider adding to your Post Office Money Over 50s Life Cover policy if you want the cash sum to pay for your funeral. Adding it won’t cost you a penny more, but could help make a difficult time easier for those left behind.

With the Funeral Benefit Option:

• Your policy pay-out goes to Dignity Funeral Directors Limited (Dignity) to arrange and help pay for your funeral
• Dignity will put an extra £300 towards the final cost of your funeral
• Your loved ones will be supported through the process at an obviously difficult time
• Post Office Money Over 50s Life Cover has a Defaqto 5 Star Rating

You can add the option to your Over 50s Life Cover when you apply, or at any time later.

When the time comes, the cash sum from your policy will be paid to Dignity – one of the UK's leading funeral directors.  

A single call to Dignity from your family is all it takes. They’ll take care of all the arrangements, and they’ll even contribute an additional £300 towards the cost of your funeral.

With nearly 800 sites around the UK, there’s a Dignity team nearby and ready to support your family when they need it most.

Things you need to know

†Source: The Royal London National Funeral Cost Index Report, 2017.

It doesn’t cost anything to add the Funeral Benefit Option to your policy, but you do need to make sure you maintain the monthly payments on your policy. Failure to do so would result in your policy being cancelled, and in turn the Funeral Benefit Option also lapsing.

If your funeral with Dignity costs less than the combined value of the cash sum from your policy and the £300 contribution, any money left over would be paid to your estate. However, if the funeral costs more than the combined value, your loved ones would have to pay the outstanding balance to the Dignity Funeral Director.

If you die of natural causes within the first year of taking out your Post Office Money Over 50s Life Cover policy, the full cash sum would not be payable. Instead, all of the monthly payments you have already made, plus half as much again would be paid to your estate rather than to Dignity. However, if your representatives decide to use Dignity for your funeral, they would still be entitled to the £300 contribution towards the final cost of your funeral.

If you die as a result of an accident (see the Post Office Money Over 50s Life Cover Terms and Conditions for an explanation of accidental death) within the first year of taking out your Post Office Money Over 50s Life Cover policy, the full cash sum would be paid to your estate rather than Dignity. However, if your representatives decide to use Dignity for your funeral, they would still be entitled to the £300 contribution towards the final cost of your funeral.

You can add the Funeral Benefit Option to your policy at any time, but only if you haven’t already added Funeral Benefit Option to any other Post Office Money Over 50s Life Cover policy, or any similar policy you hold with another provider.

If you already have a pre-paid Funeral Plan you would not be able to add the Funeral Benefit Option to your policy. Also, if you decided to take out a Funeral Plan in the future, the Funeral Benefit Option would be cancelled. Once you remove the Funeral Benefit Option you cannot add it back on.

You can remove the Funeral Benefit Option at any time before your death, or your representatives can choose to remove it upon your death as long as they do so before Dignity has been instructed to provide your funeral service. If the Funeral Benefit Option is removed at any time, the cash sum from your Post Office Money Over 50s Life Cover policy would be paid to your estate, and Dignity will not make the £300 contribution to your funeral costs.

Please be aware that inflation will reduce the value of the cash sum and the £300 contribution.

The Funeral Benefit Option is not regulated by the Prudential Regulation Authority or the Financial Conduct Authority.