If you’ve made the choice to start planning for the future, and helping to financially protect your loved ones from the impact of your death, you might find yourself a bit swamped. There are oodles of different financial products on the market, each fine-tuned to serve a different purpose.
So which is right for you? In this blog, we’re going on the assumption that your goal is to help secure your loved ones’ immediate futures, that means covering the cost of settling your affairs and giving you a proper send-off. To achieve this, you might consider a Funeral Plan, or Life Insurance for people over 50. Those are two common ways to achieve the goal, but which is best for you?
Let’s take a look.
|Over-50s Life Insurance||Funeral Plans|
|The payout could be used for any purpose your loved ones decide is best.||The payout can only go towards covering the costs of your funeral.|
|You could insure for a variable amount, to cover whatever expenses you feel might be necessary.||The lump cash sum you receive will be set by the Funeral Director, to cover a funeral at today's prices.|
|Your loved ones could do the lion's share of the work arranging your funeral.||You could agree most of your funeral arrangements yourself, working with the Funeral Director.|
|FiftyLife guarantees acceptance to Brits aged over 50. We only ask whether or not you're a smoker, which could adjust the price of Life Insurance.||The amount you pay will be fixed at a certain rate, dictated by the kind of funeral expenses you're covering. It also requires no medical.|
|Your loved ones could use the payout to cover a wider range of funeral options, giving you a proper send-off.||The basics of your funeral will be pre-arranged, meaning one less thing for your loved ones to worry about.|
As you can see, when deciding between Over 50s Life Insurance and a Funeral Plan, it could come down to balancing cost with flexibility. Life Insurance could cost more in premiums, but it could give your loved ones greater freedom in what to do with the money. With FiftyLife, we also give you the option of receiving a £300 contribution specifically towards funeral costs, if you go for our funeral benefit option.
Meanwhile, a Funeral Plan is a direct arrangement between yourself and the Funeral Director, and you could be locked into that agreement if your needs, or the needs of your nearest and dearest, were to change later.
The cost of the average funeral in the UK can run into several thousands of pounds. That’s an average of all funerals, including cremations. A standard burial funeral, including a plot of land, could cost more, with optional extras pushing this figure up quite a bit.
Compare this to the most basic Funeral Plans, which could contribute less than £3,000, and it’s easy to see how your loved ones might have their work cut out making up the difference. (https://www.over50choices.co.uk/funeral-planning/funeral-plans)
Over-50s Life Insurance, meanwhile, could pay out more. Here at FiftyLife, for example, we can provide up to £10,000 of cover. Of course, this could come at the cost of higher premiums, but if you have a good idea of the kind of costs to settle when you die, this option could provide greater freedom to do so.
It’s also worth noting that there’s nothing stopping you from getting both Life Insurance and a Funeral Plan, if you can budget for both each month. The funeral cover could provide the basics, with the cash sum from life cover going towards extras such as transport, catering, and a lasting memorial to your memory.
If you decide that neither Life Insurance nor a Funeral Plan are quite right for you, you can always cover the cost by simply saving money yourself. By transferring, say, £20 per month into a savings account, you can build up a pot of cash to go towards paying the cost of your funeral arrangements.
The upside of doing this is the total freedom and flexibility it gives you. You’re not entering into any formal, binding agreements with anyone but yourself. If money is tight one month, you can simply not pay into the pot and either pay double next time, or just skip it as you see fit.
Of course, there are downsides to this approach. The contribution to your funeral expenses you end up saving might not be enough to cover even a basic funeral. In this situation, you won’t be protected by any assurance from a Funeral Director or insurer.
If, on the other hand, you went for one of those options, you could be fully covered if you kept up your payments for a certain length of time. For example, FiftyLife will pay out the full cost of your cover if you die after two years, or immediately in the case of accidental death.
Has this given you food for thought about how best to help protect your nearest and dearest? Why not get in touch with our friendly, expert team for an impartial chat about your options. Contact FiftyLife, and we’ll be able to assist with any questions you may have.
Or, if you prefer a hands-on approach, you can use our online quote calculator to get a fast online quote and see how over-50s Life Insurance could work for you.