Are Co-op funeral plans safe?
Yes, it’s safe to purchase a funeral plan from the Co-op through Reassured.
The Co-op are regulated by the Funeral Planning Authority (FPA), an independent body that provide a degree of protection for funeral plan customers and their money.
Co-op funeral plan funds are kept safe in an FCA regulated whole of life insurance policy, which is managed by an independent trustee, until a plan needs to be redeemed.
Even in the unlikely circumstance that Co-op were unable to honour your plan, then the FPA will ensure that you’ll still receive the funeral you paid for via another funeral provider.
What’s not included in a plan?
Co-op funeral plans, as with other plans on the market, won’t cover some additional items and services as standard. Your family may need to pay for these when the time comes.
Excluded elements include:
- Flowers
- Embalming
- Alternative hearses
- Funeral notices
- Order of service
- Extra limousines or executive cars
- Burial plot (cost of burial plots in the UK vary from region to region)
- Catering/wake
- Memorial
- Live music
For the Simple and Bronze plans, the Co-op won’t cover the full cost of third-party fees but provide a contribution towards these.
Third-party fees include:
- Cremation or burial fees
- Doctor’s fees
- Minister or celebrant fees.
What is the Co-op Commitment?
All Co-op funeral plans arranged through Reassured, that are paid for in monthly instalments over 2-25 years, come with the Co-op Commitment.
This is an additional level of protection to ensure that if you choose to spread the cost of your funeral plan, and anything were to happen to you during this time, your funeral costs are still guaranteed.
As long as you’ve made at least 12 monthly payments then all the services included in your plan will still be carried out.
Providing you with peace of mind that your loved ones are still protected from the expense of your funeral.
Can you purchase a plan on behalf of someone else?
Yes, you can. Co-op funeral plans are available to purchase on behalf of yourself, a family member or friend.
In the instance of purchasing a plan on behalf of someone else, the person named within the plan will receive all documentation and all decisions regarding funeral arrangements will remain theirs.
However, to obtain an instalment plan in this instance, all payments must be made by the 80th birthday of the person paying for the plan.
It’s imperative that the named individual is aware of the plan being set up in their name and the person paying for the plan is 18 or over.
How do you check if someone has a Co-op plan?
If a family member has recently passed away and you’re unsure if they had a funeral plan, it’s best to do a few checks before planning the funeral.
You can find out if they had a funeral plan by:
Contacting Co-op funeralcare - Pop into the local funeral home or give them a call. They’ll be able to find out if there is a funeral plan using just the name, date of birth and address
Funeral Planning Authority - A trace a funeral plan service is available, simply fill in the online form.
Is life insurance better than a Co-op funeral plan?
Often it’s asked what’s more suitable, a prepaid funeral plan or a life insurance policy.
The answer comes down to what it is you’re looking to protect.
It can be beneficial to have both forms of cover in place. For example, a funeral plan to cover the funeral director costs and lock in today’s price, alongside life insurance policy to provide an inheritance for your loved ones.
If you’re only looking to cover the cost of your funeral, it’s likely a Co-op funeral plan would suffice.
However, if you’re also looking to protect your family from other costs, such as your mortgage or outstanding debt, life insurance may be more appropriate.
A funeral plan can only be used to cover the cost of your funeral, whereas life insurance can be used for anything your loved ones deem fit.
Age may also be a deciding factor in this decision, with a funeral plan being a fixed price regardless of age.
In contrast, the older you are, the more expensive life insurance premiums generally become. Therefore, your budget may dictate which type of cover is available.
Upon a certain age, you may struggle to even get accepted for life insurance as most term-based policies only accept applicants up to a specific age.
In this instance, an over 50s plan with no medical questions may be more suitable. However, these are only available for those aged between 50-85 years.
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