Mercia Health Benefit Plan closing

skyblues87

I suspect I know the answer to this but just on the off chance thought it worth asking the question.

My Dad was enrolled in the Mercia Health Benefit Plan many decades ago as part of his employment. The plan was eventually taken over by Bupa. He's continued paying into it on the basis that it pays out for funeral costs. 

Of course now all those that were enrolled by various local employers many years ago have reached the age where they are sadly dying, sure you can guess what is coming, the plan is being closed.

Is there any case for claiming any money back given I'm sure many people were paying in on the basis of it contributing to their funeral costs when the day comes?

No alternative has been offered, its literally we're closing the plan, go elsewhere. The letter even provides a link to MSE to look for alternatives!

DullGreyGuy

It's effectively an annual health cash plan originally linked to employment. As such the insurer is under no obligation to continue providing cover if they want to exit the market. 

The contract pays out £1k towards funeral costs but only of the main member, not of any dependents covered by the policy. It's a rather fringe benefit compared to the £700 per person per year for physio or £175 per person per year for dentistry etc. 

Do they use the main benefits of the policy or were they keeping it on just for the £1k contribution? If not then a funeral plan may be a better option which would cover the full cost of a funeral and keep up with inflation. 

skyblues87

Thats what I suspected. I think my Dad has had payments for bits and pieces in the past but nothing major. 

No chance of him getting a funeral plan now, he's end of life in a care home.