Before the age of online price comparison sites, life insurance and funeral planning had a very different form. From the 1920s through to the 1960s, door-to-door salesmen offered what were known as penny policies. These were insurance policies designed specifically to cover funeral costs, with premiums as low as a penny per week or month. For families living on low incomes, these small, regular payments were a practical way to ensure a funeral could be covered without placing a sudden financial burden on loved ones.
For many parents, taking out a penny policy for a child from birth became a sensible step. It provided a sense of security in uncertain times, ensuring that if the worst happened, funeral costs would not fall on the family. The policies were deliberately simple and accessible, which is why they became so popular.
Penny policies were paper-based and, over time, many were forgotten or lost. Millions of these policies were never claimed, leaving descendants decades later puzzled over what they might be worth. Today, families are discovering these old documents in lofts, filing cabinets, and storage boxes, often unaware that they could still hold value.
As recently as 2018, The Sun reported that around 1.1 million forgotten penny policies were still waiting to be claimed, with each policy potentially worth up to £500. LV=, formerly Liverpool Victoria, has actively sought to reconnect with lost policyholders and their families. At the time, their Managing Director, John Perks, highlighted the importance of these policies, saying they were “just as important to our future as they were in our past.”
Finding an old penny policy can be an unexpected financial benefit. If you or a family member discovers one, it’s worth contacting the insurer to check if it’s still valid. Some insurers are happy to provide guidance on how the funds can be claimed, and any recovered money could be put toward a modern funeral plan. This provides reassurance that funeral costs will be covered while easing the financial and emotional burden on family members.
Why penny policies mattered
The popularity of penny policies shows how people have always sought ways to plan for the unexpected. They were a reflection of their time, when formal savings accounts or life insurance products were less accessible to ordinary families. The idea of spreading the cost over time made financial planning for death more manageable and highlighted a simple truth: small, consistent payments can add up to meaningful sums.
Even today, the concept behind penny policies remains relevant. With funeral costs in the UK continuing to rise, small regular contributions toward a funeral plan or insurance policy can still make a difference. The principle is the same—planning ahead prevents families from facing difficult financial decisions during a time of grief.
Modern alternatives to penny policies
With the average traditional funeral in Britain now costing £4,623, according to the latest Pure Cremation Cost of Funerals index, planning ahead is more important than ever. While the original penny policy isn’t available, modern funeral plans serve the same purpose with much more flexibility and security.
At Pure Cremation, we offer a funeral plan designed to suit today’s needs. These plans allow customers to pay in one lump sum, through fixed-term payments, or monthly instalments. Each plan covers everything needed to arrange and carry out a dignified cremation. This means family members are not left with any unexpected bills or responsibilities.
The benefit of planning ahead
The appeal of penny policies with small, regular contributions building up over time can still be applied today. Modern funeral plans allow you to take control, ensuring costs are covered while giving your family peace of mind. Planning ahead removes financial uncertainty, allows you to document your wishes, and protects loved ones from stress at an already difficult time.
For families, finding an old penny policy can be an unexpected gift, offering funds that could go toward a contemporary funeral plan. Even a modest sum recovered from a long-forgotten policy can contribute toward a more comfortable, stress-free arrangement.
Take the first step
Taking action now is the best way to safeguard your loved ones. By arranging a modern funeral plan, you can ensure that your wishes are respected and your family is protected financially.
Pure Cremation’s team can guide you through the available options. You can read more about our direct cremation plan in our free guide, or speak directly with a member of the team on 0800 470 23 93.
Pure Cremation Funeral Planning Ltd is the Funeral Plan Provider. Authorised and regulated by the Financial Conduct Authority FRN: 965260
