Hundreds of Glasgow pensioners are staring down financial uncertainty after Maiden Life Försäkrings delivered a shock notice: all funeral expense insurance policies under its Family Protection Plan (FPP) will be terminated at the end of November. The move, impacting long-standing policyholders who have faithfully paid premiums for decades, has sparked outrage among local credit unions and political leaders, who have branded the decision as “immoral.”
The FPP, distributed through broker C Mutual and Glasgow credit unions since 1999, will see cover cease on November 30, leaving some elderly customers having contributed more than they stand to receive in return.
According to a report from Glasgow Live, an emergency meeting in Glasgow last week brought together several credit unions to discuss a possible legal challenge aimed at reinstating the cover. John Lyons, manager of the Carntyne and Riddrie Credit Union and himself a policyholder, said many members have been left devastated. Lyons, 65, and his wife Lorraine, 67, had £6,000 in cover but have already paid more than £8,000 in premiums. He noted that most people would not have considered withdrawing from the scheme after paying in so much, as they view their contributions as an investment and want to avoid leaving a financial burden on their families.
The impact stretches beyond individuals. Many credit unions had integrated FPP premiums into members’ regular savings plans. One credit union in Lanarkshire reportedly invested more than £1.3 million of clients’ funds in the scheme.
For affected families, the loss of cover means they must now look for alternative funeral protection—something that may be impossible given their age or health. Lorraine Spiers, whose 87-year-old mother has paid in for years, said the decision to withdraw the scheme at short notice will leave pensioners without realistic options for replacement coverage and described the move as callous.
Scottish Labour MSP Paul Sweeney has written to the Financial Conduct Authority (FCA), calling for an investigation into whether the insurer or its brokers breached regulations. He said many of his constituents have been paying into the plan since it was first created and are now worried about how they will meet funeral costs. He also noted that some policyholders have contributed more than they would ever have received and are now left with nothing. According to the report, Sweeney warned that many elderly clients may now be effectively uninsurable because of their age or medical conditions.
MP John Grady has also written to the FCA, highlighting cases where policyholders have paid multiples of their policy’s value. One constituent aged 90 reportedly paid £3,800 for a £2,000 policy, while another, aged 88, has paid £8,700 for a £4,000 plan. Grady said that many affected customers had made payments in good faith over many years because they wanted to ensure their families would not face the financial burden of funeral costs.
The Family Protection Plan was originally designed to help low-income families manage funeral expenses, particularly through credit unions, which have a stronger presence in Scotland than elsewhere in the UK. With its closure, thousands of long-time savers could be left without the financial security they had relied on for decades.
