Over 50s Insurance: The Pros and Cons

Funerals are expensive, and as a result, more of us are thinking about how to finance our own funerals to ease the burden on our family. This can be done in several ways; a Funeral Plan, Over 50s Insurance, or by saving.

over 50s insurance

A funeral plan is a secure way of funding your funeral; you pay a set amount each month that will cover all your funeral expenses or pay the whole cost upfront. The advantage of a funeral plan is that it always pays out once you have either paid in full of completed your monthly instalments, and because you are arranging your funeral in advance, you fix the services included in your plan at today’s prices. Not only does this give you peace of mind that everything is organised according to your wishes, but it also means your family will not have the financial burden of paying for the funeral that you have chosen.

Over 50s insurance is often advertised as an alternative to a funeral plan with anyone aged 50 to 80 guaranteed to be accepted, regardless of their health (although you typically need to live beyond the first two years of the plan to get the full pay-out).

Customers opting for over 50s insurance pay a fixed amount each month for the rest of their lives with a lump sum paid upon death which can be used to cover funeral expenses, your mortgage, or left as a form of inheritance. But, unlike a funeral plan, no specific funeral arrangements are made, and the pay-out from your over 50s insurance is unlikely to cover all your funeral expenses, particularly as the cost of funerals is rising

Over 50s insurance might seem more affordable, but you could end up paying more in than you get out. Over 50s insurance also gets more expensive the older you get, and it does not guarantee to payout once you reach a certain age – typically 95.

A funeral plan and over 50s insurance can be complementary to one another when used together to pay for your funeral and provide a cash lump sum for your family. If you’d like any more information about how a Capital Life funeral plan can help you cover funeral costs, please don’t hesitate to contact us or call 0800 411 8683.

We can also assist with Probate, Wills, Inheritance Planning and LPAs.