IN SPITE of warnings by NSW Fair Trading Minster Anthony Roberts about funeral insurance, advertising by funeral insurance companies will continue in the NSW Seniors Card Directory.
CPSA had written to Minister for Ageing and Disability Services, Andrew Constance, outlining its concerns about prominent advertisements in the Seniors Card Directory by companies offering funeral insurance products.
CPSA’s research into funeral insurance last year found that policy holders could end up paying up to five times the cost of their funeral in insurance premiums if they held onto their cover until they died. Premiums can also reach up to 8 per cent of the pension for $6,000 cover, meaning that often times, people will be unable to afford the rising costs, stop paying and lose their cover and all they’ve already paid.
Minister Constance stated that all businesses that advertise in the Directory have successfully passed a business reputation check undertaken by Fair Trading and that, “without enough advertising revenue, the directory would not be able to be produced and distributed to over 800,000 Seniors Card members in NSW”.
The Minister did, however, appreciate CPSA’s concerns on the matter and has asked Ageing, Disability and Home Care to explore advertisement opportunities other than funeral insurance in future years.
CPSA hopes that this comes to fruition and that the potential for losses to households caused by funeral insurance products is not set aside in seeking a revenue base for the Seniors Card Directory.