Aegon publishes State death benefits guide

COVER reported the move earlier this month and the provider has now finalised its approach to help policyholders understand the financial support available from the State.

The insurer believes that grieving families could be missing out on thousands of pounds of non means-tested State payments simply because they don't know they are entitled to them.

However, as COVER revealed last week, a report produced for the Department for Work and Pensions (DWP) recommended the currently available benefits should be changed.

It suggested that "more of this support should be focused on the short term needs of families immediately following the death".

The Aegon customer guide, ‘Financial support for difficult times' outlines the two potential non means-tested benefits available - Bereavement Payment and Bereavement Allowance.

Bereavement Payment is a tax free lump sum payment of £2,000, for which recipients must be under State pension age and the deceased spouse or partner must have made National Insurance contributions and not be entitled to a Category A state retirement benefit when they died.

Bereavement Allowance is a taxable weekly benefit of up to £100.70 per week paid for up to 52 weeks from the date of death.

Recipients must be over age 45 (but under State Pension Age), have no dependent children, and the deceased spouse or partner must have made National Insurance contributions or died as a result of their job.

Matt Rann, head of underwriting and claims at Aegon, said: "The loss of a loved one can leave families facing real financial hardship which can be a huge burden to people already dealing with a loss.

"By highlighting the benefits that grieving families could be entitled to, we aim to help make this time as easy as possible and relieve some of the strain.

"The existence of these benefits is probably not common knowledge and for many, they could make a real difference at the most difficult of times," he added.