Over 50s life insurance vs funeral plans
It’s not the cheeriest of subjects, but it’s important to consider how you will set aside funds for your funeral. Funeral costs have increased in the last decade, but with careful planning, your loved ones can mourn your passing without any unexpected financial headaches. Of course, from savings to paying from your estate, there is more than one way to fund your funeral. But should you opt for over 50s life insurance or funeral plans? Here, we look at two popular options.
What is a funeral plan?
A funeral plan allows you to pre-pay for your funeral costs at current prices, either through a one off payment or monthly instalments, often between one and ten years. A funeral plan may cover various basic arrangements - such as a church service, the funeral director's fees and viewings of the deceased - but may exclude other costs, such as flowers and burial plots. The exact package will differ depending on your budget, and which funeral plan provider or funeral director you hire.
What is Over 50s life insurance?
Over 50s Life Insurance offers an alternative to a funeral plan and could be an affordable way for you to leave money for your loved ones when you're no longer around. Our Over 50s Fixed Life Insurance is designed for UK residents aged between 50 and 80 who would like to leave a cash sum for their loved ones after they die. This can be put towards funeral costs, or left as a gift. Please note that our Over 50s Life Insurance is not a savings or investment product and has no cash value unless a valid claim is made.
Find out more about our Over 50s Life Insurance.
What's the difference between over 50s life insurance and funeral plans?
Here are some of the key differences between funeral plans and life insurance for the over 50s:
- Over 50s Fixed Life Insurance is not designed to meet the full costs of a funeral, unlike some funeral plans.
- The cash sum from an Over 50s Fixed Life Insurance policy is often used for various purposes, such as settling unpaid bills, or leaving loves ones a cash gift, whereas funeral plan policies are taken out with only funerals in mind.
- Over 50s Fixed Life Insurance can be an affordable way of giving your loved ones some financial help after your death, whereas funeral plans will cover pre-agreed funeral services and can be tailored to include additional expenses like limousine transportation or different coffin types.
Do over 50s life insurance policies cover funeral costs?
Our Over 50s Fixed Life Insurance is not designed to meet the full costs of a funeral and does not guarantee to do so. However, the cash sum from an Over 50s Fixed Life Insurance policy could be put towards some of your funeral costs.
Can you have over 50s insurance and a funeral plan?
In theory, you could have a funeral plan in place and still decide to get an over 50s life insurance policy. That's because the cash sum from the latter could be used for different kinds of expenses, such as paying unpaid bills or leaving a cash gift to a family member rather than just going towards the costs of a funeral.
What's best - life insurance or a funeral plan?
There is no 'right' way to finance a funeral, but there are different options available that suit various needs. If you're simply looking for a bit of extra money that could be put towards a funeral, with premiums starting from just £5 a month (depending on age) - Over 50s Fixed Life Insurance could provide your loved ones with some extra cash at a difficult time. But if you have specific thoughts on how you'd like to finance the funeral itself - from the type of coffin to the transportation - a funeral plan can give you a bespoke offering. So, is life insurance better than a funeral plan? It all comes down to your personal circumstances.
Start your funeral planning early
In the end, the most important thing is to help protect those you care about with a plan that lets you live (and leave) with dignity. Contact Legal & General and find out more about Over 50s life cover.