An important notice for the attention of all Prosperous Life Limited funeral plan holders
Update on the Administration of Prosperous Life Limited (In Administration) (the “Company”) and agreement reached with Dignity Funerals Limited.
You will be aware that the pre-paid funeral plan industry became regulated by the Financial Conduct Authority (“FCA”) on 29 July 2022.
Since their appointment, the Joint Administrators have taken various steps to protect the interests of the Company’s plan holders, including exploring the possibility of a FCA authorised pre-paid funeral plan provider taking on all of the Company’s funeral plans.
The Joint Administrators are pleased to announce that they have reached an agreement with Dignity Funerals Limited (“Dignity”) where Dignity has agreed to offer a funeral plan to all eligible existing plan holders of the Company. If you opt into a new Dignity funeral plan, you will benefit from FCA regulatory and statutory protections applicable to all pre-paid funeral plans in the UK, at no extra cost to your existing funeral plan.
Who are Dignity?
Dignity is part of the Dignity Group, one of the UK’s largest national providers of funeral services and prepaid funeral plans, with an extensive range of funeral locations and crematoria nationwide.
Dignity is regulated and authorised by the FCA to enter into and carry out funeral plan contracts.
When can I opt into a Dignity plan?
Subject to meeting Dignity’s suitability criteria, Dignity will be writing to you within the next 28 days to provide you with the opportunity to opt into a new Dignity funeral plan and will confirm the date by which you must opt into a Dignity plan . You will be able to opt in via phone or by logging onto an online portal. The process has been made as simple as possible, and the Company and Dignity will be here to help you transfer should you require any assistance.
What should I do now and what happens next?
There is nothing for you to do at this stage.
Dignity will soon write to you with more information on its proposal for you to consider opting into a Dignity funeral plan.
Please do not attempt to contact Dignity until you have received a letter from Dignity with more details and next steps.
Although you should seriously consider Dignity’s offer given Dignity is an FCA-authorised provider and has agreed to give credit for payments that you have previously made to the Company, it is entirely your choice whether you choose to sign up to a Dignity funeral plan. The Joint Administrators and the Company are not able to provide advice to plan holders on whether to accept a Dignity funeral plan or any other funeral plan. If you are at all uncertain, you may speak to Dignity or take independent advice on your options after you have received a letter from Dignity with further details.
What if I do not opt into a Dignity plan?
Should you decide not to opt into a Dignity plan, the Company will be unable to continue to provide you with a funeral plan from the Opt in Deadline. You may be eligible to receive a partial refund from the Trust. Whilst we cannot confirm the exact amount of the refund at this time, it is expected to be substantially lower than the amount of money that you have paid into the Trust to date. You would also be entitled to submit a claim in the Administration of the Company as a non-preferential unsecured creditor of the Company. Further, if you opt into a Dignity plan and then decide to cancel, it is likely that you may receive a refund that is less than the amount you have paid, and the same as what you otherwise may have received from the Company if you had not opted into a Dignity plan.
Whilst we cannot be certain at this stage, we anticipate that if you decide not to accept Dignity’s offer you will be unlikely to receive full repayment of the amount you have already paid to the Company from either the Company or the Trust. If you opt into the Dignity offer, you will receive a credit for the amount you have paid to date, as long as you retain the plan.
The Company will shortly be writing to all plan holders with further details of the offer from Dignity.