Life insurance beneficiaries can be forced to wait ‘months’ for pay out following a death
14 August 2017
An article published by The Daily Express has urged life insurance providers to increase the speed at which they release funds following a death.
Research from nationwide insurer, Old Mutual, has highlighted that more than half of over-55s in the UK expect their beneficiaries to pay for their funeral. But lengthy probate delays – the legal process of validating the estate of the deceased - have meant that thousands of people are turning to credit options to foot the immediate cost of a funeral.
One of the key benefits of a pre-paid funeral plan over a life insurance policy is that a funeral plan allows the holder to make financial provision specifically for a funeral in advance. Therefore once a death is confirmed, the payment is made to the funeral director immediately. This completely eliminates probate delays and ensures the family does not have to foot the bill for the cost of a funeral in the short term.
There are organisations taking action to encourage life insurance providers to release funds to the beneficiaries of policies much quicker, but this movement is ongoing and likely to be a marathon rather than a sprint.
Pre-paid funeral plans from local funeral directors are usually extremely cost effective ways to make financial provision for a funeral in advance and saved loved ones the burden of difficult decisions on your behalf.