Funeral plan provider Avalon has announced an agreement with SunLife to add a Fixed Monthly Payment option to the three core funeral plans offered to UK customers.
The agreement gives customers the option to arrange a pre-paid funeral plan where the fixed monthly payments are used to purchase an individual whole of life policy where Avalon is the policy owner and the plan holder is the life assured.
Funeral plan purchasers choosing the Fixed Monthly Payment option will be contracted to Avalon, who guarantee to provide the chosen funeral package when the policy is two years old, providing the funeral is carried out by the funeral director as stated on the funeral plan certificate and all payments have been paid up to date.
Should plan holders die before the two-year moratorium has passed, Avalon will refund all payments made to the next of kin, plus an extra 20%. The plan has no surrender value. If funeral plan purchasers cancel the plan, cover ceases.
Monthly payments are fixed and are based on the plan holder's age and selected funeral at the time of purchase.
The plans are available to customers aged 50 - 80 years, with premiums payable until plan anniversary prior to the plan holder's 90th birthday or until death if earlier.
Currently, Avalon's Windsor Way, Highgrove and Balmoral funeral plans can be purchased in full with a single payment or by instalments over a fixed term of up to 10 years.
Funds are invested in a separate trust fund managed by independent trustees and valued annually by the actuary to ensure future funeral director fees will be met.
Steve Chambers, group CEO at Avalon, said: "Working with SunLife has enabled us to make our leading funeral plans accessible to even more people. The fixed monthly payment option offers customers an excellent way to plan for their funeral."
