Over 50s funeral plans vs over 50s life cover
With funeral costs rising year on year, it’s unsurprising that an increasing number of people are looking at the various options available to cover their own funeral costs in the future. Two different ways of contributing to your funeral costs are over 50s funeral plans and over 50s life cover.
There is a lot of confusion about 50s funeral plans and over 50s life cover, how they work and the advantages and potential disadvantages of each. Below is a guide that explains the differences between the two options to help you decide which is right for you.
This guide includes:
What is an over 50s funeral plan?
What is over 50s life cover?
Compare over 50s funeral plans vs over 50s life cover
Consider yours and your family’s needs
Choosing an over 50s funeral plan from Simplicity
An over 50’s funeral plan is an easy way to arrange and pay for your funeral in advance. Funeral plans for over 50s will cover a lot of the basic funeral arrangements, although what is covered will vary from provider to provider. Most providers will offer a range of packages, so you can choose a plan that suits your needs and budget. You can usually choose to pay in a single lump sum or spread the cost over a series of monthly payments (often over 12 months).
Over 50s life cover, also referred to as over 50s life insurance is an insurance policy typically taken out between 50 and 80 years old, with a fixed lump sum paid out on death to cover the funeral costs, outstanding debts or simply to give beneficiaries a little extra cash after you’re gone. Life cover is paid for in monthly premiums which you will have agreed with the provider.
You will be required to pay your monthly premiums until you die, regardless of your age. Your age will have an impact on the pay-out you are offered. The older you are, the less the agreed pay-out will be.
|Feature||Over 50s Life Cover||Over 50s Funeral Plan|
|Easy to claim||✔|
|Lump sum paid out||✔|
|Guaranteed to pay for the funeral||✔|
|Option to pay monthly||✔||✔|
|Option to pay upfront||✔|
|Protection against rising funeral costs||✔|
|Payments end when the funeral cost is met||✔|
Over 50s funeral plans
Taking out a funeral plan means you can fix the cost of the services in the plan at today’s prices with no more for your family to pay for these services in the future, no matter how much costs may increase. However, you should be mindful that not all providers will offer the same level of care. At Simplicity, our funeral plans for over 50s cover all of the essentials of a simple funeral including cremation fees, a simple coffin, collection from the place of rest 24 hours a day, care at our mortuaries and the return of your ashes.
A funeral plan not only allows you to protect your loved ones from rising funeral costs but also ensures your funeral is carried out according to your wishes. Funerals can cause arguments between family members or loved ones, so if you’ve already decided what you’re having, it should make life a little easier for those left behind at what will already be an emotional time.
Unlike over 50s life cover, a funeral plan can only be used to cover funeral costs. Funeral plans do however have set repayment plans that, when reached, means you won’t pay any extra above the agreed amount.
Over 50s life cover
With life cover, it’s possible you may pay more money into the policy than your family will receive when you die. You will have to continue to cover the monthly premiums until you die, even if you have paid well over what the policy will payout. This can seem like a bit of a gamble, as you could end up living for another 50 years and end up paying double the amount your family will receive.
If you take out over 50s life cover, you must keep up the monthly payments otherwise your cover will lapse. If you miss a payment, you’ll no longer be covered and you won’t get any of the money back that you’ve already paid in. Another disadvantage of life cover is that the amount that will be paid out may seem adequate at the time you take out the policy, but may be affected by inflation over time.
As with many insurance policies, there are a lot of criteria that need to be met, not just to sign up for an over 50s life cover policy, but also to make a claim. Most insurers will have policy inclusions that mean you will not get a payout if you die under certain circumstances or within one or two years of taking out the policy.
Making a claim can sometimes be difficult, especially if there’s a lot of small print attached. For example, you may actually only be able to make a claim if the death was by accident, or was ‘unexpected’, with deaths by natural causes not covered under certain policies. This is why it’s really important to understand exactly what happens in the event that the life cover policy needs to be claimed.
One of the benefits of over 50s life cover is that the payout can be used however your family wish, not just for funeral costs.
There are benefits and drawbacks to both funeral plans and life cover, so it may be best for you to consider the primary reason for you taking out a plan or insurance policy.
If you want to leave a lump sum to your family to cover costs and help with other things that are not necessarily your funeral, then over 50s life cover may be the best fit. If you just want to cover your funeral costs and have the reassurance that your funeral is already arranged, then an over 50s funeral plan is the best option.
As with most things, there are a lot of providers and options. Once you have decided between a funeral plan for over 50s or life cover, you will need to decide which plan or policy provider to go with. Our best advice is to take your time researching potential providers and read the small print of any plans or policies, making sure you understand what it covers and what happens in every eventuality.
If you decide a funeral plan best suits you needs, we’ve listed some key questions to consider when choosing a funeral plan provider to help you. We know taking out a funeral plan and parting with a large sum of money can be daunting, and you’ll likely have a number of questions so we’ve also answered number of common questions including are funeral plans safe?, why should I buy a prepaid funeral plan? and what is the cheapest funeral plan I can have?
At Simplicity, we offer simple funeral plans for those looking to make their arrangements ahead of time.
Our range of funeral plans for over 50s cover all of the necessary elements of a simple cremation anytime in the future, including cremation fees, a simple coffin, care at our mortuary facilities and transportation in our specialised funeral vehicles.
Unlike more traditional funeral providers, you can select a plan based on the number of people you’d like to attend your funeral; choosing from an unattended direct cremation, a small funeral for up to 12 people to attend, or a larger funeral with a service arranged by your family.
Our funeral plans for over 50s start from £1,495 or £16 per month. It’s easy to take out a funeral plan, you can buy online in just a few simple steps, and complete the application form included or contact us to discuss setting up your plan.