IMMORAL

Thousands left in limbo as insurance company pull plug on their funeral plans

- BY MARK McGIVERN

THOUSANDS of Scots pensioners have been thrown into crisis after insurers pulled the plug on policies that cover funeral expenses.

The action by insurance giants Maiden Life Férsakrings has been slammed as “immoral” and leaves many pensioners in their 80s and 90s unable to cover their own funeral bills.

Many clients of the company =which sold the Family Protection Plan (FPP) via broker C Mutual and credit unions - have paid in for more than 20 years.

Contributions for many have by far exceeded any settlement they might have been awarded on their death. The cover will stop on November 30.

An emergency meeting in Glasgow yesterday brought together representatives from credit unions, who are considering a legal battle to restore the cover.

John Lyons has found himself inthe middle of the scandal, as manager of the Carnlnye and Riddrie Credit Union and as a client of the scheme.

John, 65, and 67-year-old wife Lorraine were covered for £6000 in the event of their death - but have already paid in more than £8000.

Many credit union clients have incorporated the funeral cover premiums into their regular savings plans.