Life Insurance  

Aegon makes funeral payment pledge

Aegon makes funeral payment pledge

Aegon has signed up to the Protection Distributors Group’s funeral payment pledge.

The provider will pay the family’s funeral director or home up to £10,000 (or the claim value if less than £10,000), in advance on all valid life insurance claims without waiting for probate. 

This goes beyond the £5,000 payment the group proposed for providers to support bereaved families.

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Stephen Crosbie, protection director at Aegon UK, said: “We are delighted to get behind this initiative. 

“It was very easy to support as we’ve had this approach to paying claims for a while, advancing claims of up to £10,000 for those without a will or probate and up to £100,000 for those with a will or probate.

“Not enough people are making wills and plans for their passing away, resulting in loved ones getting caught out by funeral bills they weren’t expecting. 

“This pledge will help families avoid getting themselves into debt paying for a funeral they may never have expected to have to pay for, while they are waiting for the full life claim payment to be paid out.

“With the cost of funerals rising over the years, we’ve gone a step further for our claimants to help them through a difficult time and will now offer up to £10,000 in advance, on a valid life protection claim.”

Emma Thomson, chairman of the Protection Distributors Group, said: “We are very pleased Aegon are not only supporting but exceeding our funeral payment pledge campaign, which aims to help people who may face delays to a claim being paid due to there being no will or trust in place. 

“It is fantastic news for families who may otherwise struggle to pay for the funeral.” 

The advance funeral payment will be available on all life protection policies from July.

Last month Royal London and Zurich became the latest firms to sign up to the Protection Distributors Group’s funeral payment pledge.

AIG and LV signed up to the pledge earlier this year.

emma.hughes@ft.com