PensionsJul 24 2014

Product review: Sun Life funeral plan

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SunLife is giving customers greater choice of how to cover funeral costs, by becoming the first national over-50s plan provider to also offer funeral plans.

The product is offered through Golden Charter, the funeral plan provider.

The company has expanded its business in the direct-to-consumer financial services market, launching a new plan aimed at helping consumers beat inflation and the rising costs of funerals.

According to the company, 71 per cent of customers who take out an Over-50s Plan - which pays a fixed sum on death - use the fund to help pay for their funeral.

Funeral costs have risen 80 per cent in the past nine years, much faster than inflation, with the average funeral now costing £3,456.

Customers have three funeral plan options to choose from to suit their individual needs, ranging from Standard, Select and Premier. Options range from basic provisions, such as choice of coffin, to hearse or limousine provision, to recommendations for bereavement counselling.

The client’s family members will also receive an allowance for costs outside the control of Golden Charter, which start at £1,100 and increase each year.

This allowance is available for all the funeral plan options and includes doctors’ and clergy or officiant fees, as well as the service at a local crematorium or cemetery.

www.sunlifedirect.co.uk

Comment:

The majority of SunLife over-50s customers take out the product to help with funeral costs, so it was a sensible choice to offer them a funeral plan, too.

Customers will benefit from a degree of protection as the plan is regulated by the FCA - a unique feature compared with other plans on the market.

The funeral director’s services, guidance on funeral arrangements, advice on related documentation, transport of the deceased, chapel and service rooms, and a coffin are available on all three plans. Family viewing and one limousine, in addition to the basic hearse, differentiate the Select over the Standard plan. A full list of floral tributes and two limousines make the Premier plan superior over the other two options.

Customers should bear in mind that some features on the Standard plan are limited to certain times on weekdays. Rest in peace - during normal office hours only.