The terms require this 57-year-old policyholder to pay premiums until they are 90 ? or cancel and lose the �456 invested to date
Two years ago, after the untimely death of a young friend, I took out a bronze cremation plan with The Co-operative Funeralcare. I discussed it on the phone, received papers to sign and started paying �19 a month by direct debit.
I have recently lost work and am trying to cut my outgoings. When I asked The Co-operative how much longer I have to keep paying, I was told until I am 90. This was not explained to me. I am now 57 and in excellent health. If I cancel the policy, the Co-op will keep the �456 I have paid in so far. AF, London
Unfortunately these are the terms of your policy. They clearly state that, if you cancel after the 30 days allowed for cooling off, there is no cash-in value and no refund.
It is not suitable for comparatively young and healthy people because its main advantage is that The Co-operative asks no medical questions. This makes it good value for anyone with a short life expectancy.
You have 33 years until you are 90 which means, if you live that long, you have to pay another �7,524 in premiums. The average cost of a funeral today is �2,700. Your only choice is to waste the �456 or keep paying.
The Co-op won't let you switch to a different plan and anyway this would cost more ? about �80 a month for three years for a �3,000 funeral and, if you died before completion, the premiums are returned. With your existing policy, your funeral is paid for whenever you die.
You can email Margaret Dibben at your.problems@observer.co.uk or write to Margaret Dibben, Your Problems, The Observer, Kings Place, 90 York Way, London N1 9GU and include a telephone number. Do not enclose SAEs or original documents. The newspaper accepts no legal responsibility for advice.
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