Over 50s life cover vs over 50s funeral plans
They say 50 is the new 40, but even so, many people in the UK seem to get a gentle reminder that it’s time to set out some plans for the future as they enter their fifth decade. Even though it’s totally possible to live twice as long as 50, this milestone usually acts as the point where it makes sense to ensure that if something were to happen, loved ones won’t be left to sort everything out or pick up the costs when it comes to funerals, solicitors and other costs associated with death.
What is over 50s life cover?
Over 50s life cover (typically taken out between 50 and 80 years old) is an insurance policy, 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.
What is an over 50s funeral plan?
An over 50’s funeral plan is an easy way to arrange and pay for your funeral in advance. Funeral plans 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)and you may incur an administration or interest fee.
Compare over 50s life cover to over 50s funeral plans
Over 50s cover at a glance
|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 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 decent 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 not just for funeral costs, but also as inheritance or just to help grieving loved ones enjoy a holiday or some extra money.
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 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 over 50’s funeral plans 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.
Funeral costs vs. life costs
There are a lot of options and providers out there. Our best advice is to take your time and read the small print, making sure you are aware of what happens in every eventuality.
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, then an over 50s funeral plan is the best option.
Start your over 50s funeral plan today
Simplicity takes an open, honest and transparent approach to funeral costs, plans and payments, so you’ll know exactly what to expect. Discover our over 50s funeral plans online or contact us for more information.