Hundreds of thousands of Yarden customers will have to pay for the coffin, following car or coffee and cake themselves or take out additional insurance. As from 2020, the funeral company freezes the value of 380,000 package policies out of the 1.4 million policies in an emergency response under pressure from DNB, the regulator.
The group of insured today receives a letter from Yarden with the unilateral change of the conditions. All cost increases in the future are for the account of the customer and no longer for those of Yarden. The intervention takes place with package policies with a fixed premium, which offer a well-organized funeral service, instead of a sum of money with which you purchase a funeral service.
“The package insurances come from different times, when interest rates were higher and funerals were even cheaper,” says director René Collé. “And in the present time, a fixed premium is almost unthinkable.”
What does this mean for insured persons? On average, these policies now have a value of 3200 euros. If a funeral comes to fruition in 2030 and prices rise by 1.75 percent annually, then a customer can no longer get the same funeral. The policy is still worth 3200 euros, but the funeral costs 3873 euros. Surviving relatives can then choose between paying extra or scrapping part of the funeral, for example the following car.