They prey on the guilty feelings of elderly people who don’t want to leave a problem for their offspring. It’s one of those situations where a frank conversation needs to be had.
Absolutely. Not only that that, it may still leave a problem. My mother had a policy that paid out on death (not exactly the same as this, she only had to pay until she was a certain age - 85. 90, whatever), once we had worked out who it had been sold on to and claimed, it wouldn't pay for the simplest funeral but she thought it would be fine. Fortunately I had the money to make the difference for a standard funeral, nothing flash. They do now say 'pay towards funeral expenses', which is an improvement.
The other difference is that, unlike home, car, health and pet insurance, you are tied in for life or lose the amount you have already paid. No shopping around for a better deal having found out there are better policies about but you been lulled into it with a gift card you don't fully use.
I'm please to say that I am not the only member of my family who has bought our funerals; its the funeral I want, nothing fancy. None of that how many cars do we need, what sort of casket, do we want a wreath, what type - the answer is he planned it, it was what he wanted - that's the message to funeral directors as well. Music, script, everything. All the family and friends need to do is turn up (or not, I won't be counting). End of story.