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Glasgow pensioners have been plunged into crisis after insurance companies abruptly cancelled policies covering funeral expenses. The move by insurance giant Maiden Life Försäkrings has been branded as "immoral", leaving many elderly individuals, in their 80s and 90s, unable to foot their own funeral bills. Numerous clients of the company - which marketed the Family Protection Plan (FPP) via broker C Mutual and credit unions - have been contributing for over two decades. For many, their contributions have significantly surpassed any payout they might have received upon their death. The cover will cease on 30 November. An urgent meeting in Glasgow last Friday saw representatives from credit unions come together, contemplating a legal fight to reinstate the cover for pensioners, reports the Daily Record. John Lyons finds himself at the heart of the scandal, both as the manager of the Carntyne and Riddrie Credit Union and as a client of the scheme. John, 65, and his wife Lorraine, 67, were insured for £6,000 in the event of their death - but have already contributed more than £8,000. Many credit union clients have integrated the funeral cover premiums into their regular savings plans. John said: "I've paid in more than I could be paid out in benefit and, like so many others, I kept paying in after the scheme was closed to new clients. "Most people would not have considered withdrawing from the scheme after paying in so much. They feel they have invested into it and simply want to avoid leaving any burden on their next of kin when they die." He added: "This is a huge problem for so many families in Scotland, who are already struggling against poverty." Lorraine Spiers, 49, revealed that her 87-year-old mum, Joan Brown, has paid in more than the cost of a funeral but will now be left without cover. She said "It just doesn't seem right that they will pull the plug like this at short notice. We simply won't get that cover anywhere else and we will be left in the lurch. It seems pretty callous to me." Glasgow MSP Paul Sweeney has penned a letter to the UK's Financial Conduct Authority to seek an inquiry into any potential breaches of regulations. Mr Sweeney said: "It has come as a hammer blow for thousands of Scots that the Family Protection Plan (FPP) brokered by C Mutual will be withdrawn on 30 November 2025. "Many of my constituents have been paying into this plan since it was first created over twenty-five years ago and they are now worrying whether they will be able to cover the cost for their funerals. Many of them have contributed far more to the plan than they would have received at their passing and so to now be left completely empty handed is unacceptable." Mr Sweeney noted that the low cost cover will no longer be available for many - who may be effectively "uninsurable" due to their age and medical situation. He added: "People are genuinely distraught to find that the cover they thought was assured has been taken away from. It is immoral and grossly unfair for them to find themselves in this situation. "I am seeking to find out what support they might get and what might be done to challenge this action." The FPP was established in 1999 to assist families with funeral costs. It was sold via credit unions across Great Britain but has been closed to new customers for over a decade and a half. Existing customers, who are now much older, are more likely to be seeking the plan's support. Scotland has double the number of affected individuals compared to England and Wales, due to our heavier use of credit unions. It is believed that one credit union in Lanarkshire has invested more than £1.3 million of clients' money into the scheme. MP John Grady has also penned a letter to the FCA. He writes: "Many of the purchasers of the plan are elderly people who have paid into the plan for very many years. They have done so because their families are not wealthy. They want peace of mind that when they die, their families will not have to worry about funeral costs. They have made contributions on this basis, in good faith. Mr Grady has brought to the FCA's attention shocking cases: • One constituent who is 90 has paid over £3,800 for a £2000 policy. • One aged 88 has paid over £8,700 for a £4.000 policy. • Another, aged 73 has paid over £11,700 for a £6,000 policy. He added: "The withdrawal of the policy in these circumstances fails to treat these customers fairly." Councillor Ann Jenkins, who invested in the FPP through the Haghill and Dennistoun Credit Union, said: "I was in my 40s when I paid in £15 a month - a modest sum that gave peace of mind. "The premium rose to £43 but I have stuck with the policy and think I deserve to be treated better. The nature of this cover - to cover death - means few people will give it up when they get older. That's what makes this action quite cruel." Credit unions, which are widely used in working-class communities, have nearly half a million users in Scotland - double the rate of England and Wales. Scotland is home to approximately 113 credit unions, comprising a mix of community-based and employee-based organisations. In December last year, Maiden Holdings, Ltd announced its plans to sell off its Maiden Life Försäkrings division to an "expanding group of international insurance and reinsurance companies", based in London. The Family Protection Plan (FPP) was a life insurance plan that could be cancelled by either the customer or the insurer at any time. A spokesperson for the Financial Conduct Authority (FCA) said: "We recognise this is a concerning situation for consumers. "We're encouraging Credit Unions to contact members quickly, so they have time to explore other options. Consumers may wish to consider alternative cover to ensure their future needs are protected." A spokesperson for the coalition said: "This is abandonment of vulnerable older people who believed they were protecting their families. "People have paid in faithfully for decades, and now when they need the cover most, it is being taken away, by Maiden life Insurance and CMutual brokers." The coalition says no vulnerability assessment was carried out and that many affected members are now too late (due to their age) to get replacement cover anywhere, creating what they describe as "funeral poverty by abandonment". The Credit Unions are demanding their members cover remain in place or that their members monies be repaid in full. The Record approached both Maiden Life Försäkrings and C Mutual for comment. Sign up to our daily Glasgow Live newsletter here to receive news and features direct to your inbox Join Glasgow Live's Whatsapp Community here and get the latest news sent straight to your messages.
