Funeral plans vs over 50s life cover
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 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 a funeral plan?
What is over 50s life cover?
Compare funeral plans vs over 50s life cover
Consider yours and your family’s needs
Choosing an funeral plan from Simplicity
What is a funeral plan?
A 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.
What is over 50s life cover?
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.
Compare funeral plans vs over 50s life cover
| 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 changing funeral costs | ✔ | |
| Payments end when the funeral cost is met | ✔ |
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 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. Having said that, 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.
Consider yours and your family's needs
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.
As with most things, there are a lot of providers and options. Once you have decided between a funeral plan or over 50s or life cover, you will need to decide which plan or policy provider to go with.
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?
Choosing a funeral plan from Simplicity
At Simplicity, we offer simple funeral plans for those looking to make their arrangements ahead of time.
Our range of funeral plans 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.