Funeral plan problem

A question about : Funeral plan problem

Hi I hope someone will be able to give me some advice.
My parents took out funeral plans about 20 years ago, with a company called Destiny (also known as Chosen Heritage).
My Mum died recently and she was taken to the funeral directors named on the plan. All was OK. However it came to light that this funeral directors are not on the list of companies used by Destiny and therefore they told me they would be unable to do the funeral under the plan. They told me this problem had arisen before where people had been under the impression they would be looked after by this funeral company, only to find out at a vulnerable time that Destiny would not fund the service.
Both my parents have a letter dated 2011 from Destiny confirming their nominated funeral director as being the one where my mother was taken. The nearest director that Destiny recognise is 15 mikes away!
I've spoken to Destiny and made it clear that I'm not happy. They have agreed to do a one off arrangement with the local firm but there is a shortfall on the cost of the service and Destiny are expecting the local firm to foot the bill.
I am absolutely disgusted with them. It seems to me this is their responsibility and they should shoulder the full cost.
Has anyone had any dealings with Destiny? Any advice would be very welcome.
Thanks

Best answers:

• Your problem has arisen because you are supposed to contact the funeral plan company first not contact the undertaker directly. The way the policy works is clearly stated within the original paperwork. I can't see the undertaker taking a loss on this as they haven't made a mistake. Indignity could have refused to pay for the funeral as you broke the terms of the contract.
  I recently arranged my aunts funeral through Chosen Heritage and they couldn't have been more helpful. The nominated undertaker no longer existed so they allocated another. I live in Eastbourne and my aunt died in London and I managed to arrange everything over the phone so I don't understand why the undertaker being 15 miles away would be a problem.
• When my parents took out their funeral plans, AgeUK had an agreement with one local firm. Several years before they died, they had letters to say that the contract was being changed to another funeral director.
  It was laid out in the terms and conditions that this could happen.
• First of all I should have said Dignity, not Destiny.
  The last communication received from Dignity was in 2011 to confirm that the nominated funeral director was their original preferred one. No letters were received informing that the situation had changed, and that is my complaint. Mum died in a nursing home and they were aware who the funeral directors were, hence why she was taken there.
• Your mistake was in not contacting Dignity directly thus breaking the contract with them. The terms of the contract and what to do when policy holder dies are stated clearly in the original paper work. As you made your own arrangements legally they are not obliged to pay for the funeral.
  When it was realised that she had gone the wrong undertaker the best thing would have been to move her to the correct one. This often happens when someone dies in a home and the deceased has to be moved before they are able to contact the family.
• No letters were sent out from Dignity, no. They've confirmed that.
• when people are in nursing homes the NH usually ask about funeral directors and this is noted in the file - I've only ever seen the name of the funeral director listed, not any companies though am sure that many of the people will have had policies in place.
• Just read the t and c's and they make no mention of having to call Dignity before anyone else. In the section "What to do when there is a death in the family" it lists 3 things to do at once: contact family doctor, contact nearest relative and contact the Chosen Heritage Funeral Director. That is exactly what we did.
• Thank you Mojisola. That's what I think they should do as well. At the moment they are trying to get out of the shortfall. To me it seems they are in breach of contract.
• Point out to them that the paperwork isn't consistent with their website.
  https://www.chosenheritage.co.uk/active-plan/
  To put your plan into motion all your loved ones need to do is make one phone call to Dignity. Your Nominated Funeral Director will then be on hand to help guide and support your loved ones through making the arrangements.
  If that isn't in the paperwork you have, they can't expect you to know you should go through them.
• Thank you. I'll do that. Mum and Dad took out the plan back in 1993, so the original paperwork is pretty old. However, Dignity surely have an obligation to update clients of changes to their procedures. So that's another thing they haven't done. I've already warned them that if this is not dealt with satisfactorily I will be contacting BBC Watchdog. Hope it doesn't come to that though.
• Do you know what has caused the shortfall ? Did you order items or services that aren't covered by the plan ?
• Yes I do know how the shortfall occurs. The plan that my parents each opted for allows for a certain type of funeral. They opted for a simple funeral each. It turns out that for the same service at the local funeral director there would be extra cost. Without knowing the exact figures involved, I gather there is probably a shortfall of at least Ј500.
• That's as maybe, they obviously have their reasons for changing arrangements. However, they did not inform us.
• I expect that the reason Dignity changed the FD is that Dignity plc OWN several hundred FDs and a number of crematoria as well as running funeral plans under various different brand names.
  Having said that, there are some geographic areas of the UK where Dignity don't have one of their own branches, and then they will offer the funeral plan to a local independent FD. The independent will usually be required to sign a contract to confirm that they will carry out the Dignity plan at a rate agreed with Dignity. Under these circumstances, if there is a shortfall, it is usually the FDs responsibility to absorb this without recourse to the family.
  Sorry I can't be more helpful without seeing the specific Ts & Cs of the plan in question.