As Day of the Dead nears, groups warn of unfair practices in funeral insurance, urging lawmakers to adopt a new draft law to protect grieving families.
Funeral insurance criticized for unfair practices
As the Day of the Dead approaches, consumer advocacy groups Unaf and Que Choisir Ensemble have renewed their concerns about the way funeral insurance contracts are structured, claiming they often favor insurers over policyholders.Low payout rates raise concerns
Currently, about one-third of deaths are covered by funeral insurance, generating around 1.8 billion euros in annual premiums. However, with a claims rate of only 40%, the amount returned to beneficiaries is significantly lower than what is paid in premiums.Draft law introduced to address issues
A proposed law aimed at reforming funeral insurance was submitted to the Senate on June 16, 2026, by Senator Marie-Do Aeschliman. The law seeks to correct the unfair practices and protect policyholders from exploitation.Proposed changes to prevent overcharging
The draft law would cap the amount of contributions to twice the total guaranteed capital. This is intended to prevent overcharging, especially for older policyholders, who are often charged more due to the aging population.Improved transparency for families
The law requires insurers to inform applicants within three days of receiving a request about existing contracts and the beneficiary’s status. This aims to simplify the process for grieving families who are already vulnerable.New requirements for funeral operators
Since August 13, 2026, funeral operators must provide families with a detailed information notice before they sign up for services. This includes a breakdown of mandatory and optional services and a clear quote.Support for beneficiaries in difficult situations
The law also requires insurers to check the AGIRA system, which tracks insurance contracts, to help families who may be struggling after the death of a loved one. This is done in accordance with the opinion of the CCSF.Guaranteed capital to go to heirs when needed
If the designated beneficiary is deceased or unable to organize the funeral, the guaranteed capital will go to the insured’s estate. This ensures the money does not go unused and reaches the deceased’s heirs.Call for simplified documentation
Unaf and Que Choisir Ensemble are urging the government to ask the Financial Sector Advisory Committee to push insurers to simplify the documents needed for beneficiaries to claim the guaranteed capital in new contracts.
