Things you need to know
*Source: British Seniors Funeral Report 2021
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 Co-op Funeralcare costs less than the combined value of the payout from your policy and the discount amount applied, any money left over would be paid to your legal beneficiary. However, if the funeral costs more than the combined value, your loved ones would have to pay the outstanding balance to the Co-op Funeralcare Director.
If you die within the first year of taking out your Post Office Over 50s Life Cover policy, any amount due under your policy would be paid to your legal representative, rather than Co-op Funeralcare. However, if your representative decide to use Co-op Funeralcare for your funeral, they would still be eligible for the discounts available towards the final cost of your funeral.
If you die of natural causes after the first year of taking out your Post Office Over 50s Life Cover policy, any cash sum due under your policy will be paid to Co-op Funeralcare up to the cost of your funeral.
If you die as a result of an accident (see Post Office Over 50s Life Cover Terms and Conditions for an explanation of accidental death) after the first year of taking out your Post Office Over 50s Life Cover policy, the insurer, AIG Life Limited, will pay out two times your cash sum amount. Only your original benefit amount will be paid to Co-op Funeralcare up to the cost of your funeral. The remaining benefit amount will be paid out to your legal beneficiary.
Please be aware that the inflation will reduce the value of the cash sum from your Over 50s Life Cover policy and the available discounts for Funeral Benefit Option.
The Funeral Benefit Option is not regulated by the Prudential Regulation Authority or the Financial Conduct Authority.