Over 50 Life Insurance vs Funeral Plans

Elaine Brookes Steve Case

Author: Steve Case - Insurance Expert

Reviewed & Fact Checked By: Elaine Brookes

Updated: 31st December 2023

over 50 life insurance vs funeral plans

”Life is unexpected, and it’s wise to prepare yourself and your loved ones for all sorts of circumstances.

Welcome to our over 50 life insurance vs funeral plans page. Here you will find detailed information about life insurance plans and funeral plans that can help your family cover the funeral costs after your passing.

Over 50s Life Insurance

An Over 50s life insurance policy is dedicated to those between the ages of 50 to 80. This policy allows you to secure your loved ones for the time after your death. 

The money you pay with this insurance can cover the costs of your funeral or be the inheritance for your children, spouse, or a close friend. With this policy, you can expect the same terms as most life insurance coverage plans offer.

You sign up for a set period, during which you pay monthly premiums, and if you pass away during the insured period, your family will receive a lump sum payment. 

The difference between Over 50s life insurance and other insurance covers is that these plans offer guaranteed acceptance, which means you don’t have to meet additional requirements, like having good health history, to benefit from this coverage. 

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over 50 life insurance or funeral plan?

Funeral Plans

Although similar to an Over-50s life insurance policy, funeral plans are meant to help an individual cover the costs of their funeral, nothing else. This means that if you choose to benefit from this solution, you can pay a fixed sum in advance to pay for various services regarding your funeral.

There is an option to cover the costs of such a plan in monthly instalments. Usually, you can choose between plans that last from one to ten years. 

A funeral plan allows you to plan your funeral, choosing the type of ceremony you would like to have and how much money should be spent on it. 

It’s important to mention that a funeral plan can pay for some funeral services or all of them, depending on your package. Some costs, for example, floral costs, may not be included in a funeral plan. 

Specific information on this topic will be laid down in your funeral plan, so you will have complete clarity as to what exactly will be covered by your plan. 

The final costs will depend on your package and your choice of funeral plan provider. 

Funeral plans for Over 50s allow people midway through their lives to plan ahead and take care of their families by taking the burden of planning and paying for their funeral services off their shoulders.

What’s the Difference Between Life Insurance and Funeral Plans?

When deciding between over 50 life insurance or a funeral plan, it’s useful to explore the two options and see the crucial differences between them. This is what you should consider.

Over-50s life insuranceFuneral Plan
Over-50s life insurance would pay out a lump sum to your family after your passing if you died during the policy’s term. This money can be used to cover funeral costs, but it’s not a requirement.An insurance funeral plan guarantees to cover the funeral costs at today’s rate. Money from this plan cannot be used as an inheritance or in any other way.
Insurance does not guarantee that it will cover all the funeral costs.Some funeral plans are designed to cover all the costs regarding the funeral.
You have to pay monthly premiums for the duration of the policy’s term.You can choose to pay one lump sum or pay in monthly installments.
This insurance may require underwriting to determine whether or not you can secure the cover.UK applicants have guaranteed acceptance with no requirements regarding their medical history and other risk factors.

Covering Funeral Costs with Life Insurance

What can you expect when you’re selecting over 50 life insurance to pay for the costs of your funeral? 

Main Advantages

There are several benefits of choosing Over-50s life insurance to secure yourself and your loved ones. 

  • Funeral life insurance can be much broader. Money can help cover the funeral costs, but it can also be used towards paying bills, protecting the financial future of your spouse and children, or as an inheritance. 
  • Most of the time, you can expect a higher payout for your beneficiaries than with a funeral plan. This means that even if your family decides to spend the money to cover the funeral costs, they might be able to use some of the money left towards different goals. 
  • You can add some additional benefits to your coverage, such as terminal illness coverage or critical illness cover, and enjoy a waiver of premium or separation benefit, depending on which insurance you choose for yourself. This means you can protect your future both before and after death. 
  • Over 50 life insurance offers guaranteed acceptance, no matter your medical history.

Main Disadvantages  

  • You have no guarantee the money from the policy will be used to cover the costs of funeral services. 
  • An upper age limit is usually set for 80 or 85 years old. 
  • There is a possibility that you will pay more in monthly premiums for life insurance than the sum that is paid out. It will depend on how long you live and your policy terms. You may not qualify for any payout if you outlive your policy term. 
  • This coverage requires a waiting period. Usually, it is set to one or two years; during that time, an insurer won’t pay out the full sum to your relatives if you pass away.
insurance funeral plan

Covering Funeral Costs with Funeral Plan 

Main Advantages

Why might an insurance funeral plan be worth considering? 

  • A funeral plan guarantees that at least a portion of your funeral costs will be covered. 
  • You can plan your funeral arrangements by selecting a suitable funeral plan. You have control over how your ceremony will look, and you get to help your relatives by taking this out of their hands. 
  • With funeral plans, there is a guarantee of acceptance. A funeral plan provider won’t ask you about your medical history, and there are no special requirements to qualify for this plan.  
  • Funeral plan prices are fixed, and you know from the beginning how costly the plan of your choice will be. 

Main Disadvantages  

  • The money you’re paying can only be used towards funeral-related costs.
  • Some plans may cover only some portion of funeral services.
  • Generally, your policy cannot be transferred if you decide to move to another country. 
  • You will receive the payout as much as the sum you have paid. 

Over 50 Life Insurance or Funeral Plan – Which One Is More Affordable?

Which option is cheaper? Well, the cost of 50s life insurance and a funeral plan will vary depending on individual circumstances. 

For example, if you’re at an age closer to 50 or 60, your monthly premiums for life insurance coverage can be minimal. Some insurance companies offer cover starting at £5 a month. 

But, like with many other policies, the longer you wait to buy over 50 life insurance, the higher your premiums will be. Your monthly premiums can amount to £70 or £80 if you’re older.

When it comes to the costs of funeral plans, this can also look different depending on which plan you’re choosing. Most plans start at £3,000 for a standard, traditional funeral, but these costs can be higher, depending on the type of services one selects. 

You can either pay for a funeral plan in one lump or decide on monthly premiums spread across a few years. 

Overall, the costs of insurance are more substantial, but the payout is also much higher. The monthly costs with both plans can vary depending on your situation.

In many cases, life insurance is cheaper, but if you only care about ensuring your funeral expenses are covered, it might be more affordable to benefit from a funeral plan. 

You can get quotes from leading insurance companies and learn about your options with Insurance Hero. Our Experts offer comprehensive assistance in finding the best solutions for your situation. 

over 50s cover vs funeral plan explained

Can You Have Life Insurance and a Funeral Plan?

There are no obstacles to getting life insurance and a funeral plan over 50 simultaneously to serve different purposes. If you have a budget for both, it might be a good idea to consider this strategy.

But it’s worth noting that some life insurance providers offer funeral life insurance add-ons. You may purchase this benefit for an additional cost and ensure that part of your insurance payout will go towards funeral costs. 

The costs of cover that includes an insurance funeral plan might be more affordable than purchasing two plans separately. If you’re interested in this solution, it is worth consulting with an insurance broker to discuss the benefits and costs of such an add-on.

Over 50 Life Insurance vs Funeral Plans Which Option Is Better?

Which plan offers more – Over 50 life insurance or a funeral plan? It depends on what your main priority is. Both plans provide you with something different, and both present many benefits. 

If you wish to ensure your funeral service costs are covered and you want to plan your funeral, then choosing one of the funeral plans for over 50s makes sense. It’s more affordable, and you are guaranteed to be accepted.

Life insurance for those over 50 is a valuable cover if you want to secure your loved ones’ future after your death. It can be a way to pay for the funeral costs, but it’s something you will need to discuss with the beneficiaries of the policy, as the money from the policy can be used according to their will. 

Regardless, life insurance gives you peace of mind, as you’re leaving your family with resources to pay for living expenses, mortgage, education, and other costs. It’s a more substantial plan which offers a higher payout and additional benefits.

The final choice between a funeral plan or life insurance will come down to your priorities and budget. 

If you want to learn about different life insurance plans for those over 50, get a comparison quote from Insurance Hero. 

Our 8-point list for healthy ageing in your fifties and beyond:

  • Balanced Nutrition: Ensure your diet is rich in whole foods, lean proteins, fruits, and vegetables. Limit consumption of processed foods and saturated fats.
  • Keep Moving: Physical activities such as walking, swimming, or even dancing can play a critical role in maintaining physical and mental health.
  • Regular Doctor Check-ups: Frequent health screenings to monitor blood pressure and cholesterol can help detect potential health problems early.
  • Brain Workout: Activities like puzzles, reading, or learning a new skill help in psychological stimulation and preventing cognitive decline.
  • Prioritise Sleep: Adequate and quality sleep is crucial to overall health. Strive for 7-9 hours of restful sleep per night.
  • Stay Social: Regular social interactions can reduce feelings of loneliness, depression, as well as stimulate your brain.
  • Self-Care: Limit your alcohol intake, quit smoking if applicable, and find healthy stress management practices like yoga or meditation.
  • Regular Health Maintenance: Stay up to date with vaccinations, protect your skin with sunscreen, and maintain regular dental and eye check-ups and hearing tests.

For more ideas, read our comprehensive guide, which provides an array of effective strategies for healthy ageing for people aged 50 and over.

Don’t forget that individual health needs vary significantly, so it’s always good to consult a healthcare provider for personalised advice.

Over 50 Life Insurance vs Funeral Plans FAQs

Do you need a funeral plan if you have life insurance?

Over 50 life insurance can be used to cover the funeral costs, so if you have this policy in place, there is no requirement to get a funeral plan as well. You can get it if you wish to have a guarantee that your funeral services will be covered. You can also opt for an add-on to your life cover to set aside a sum for funeral costs. 

Does life insurance automatically cover funeral expenses?

No, life insurance won’t cover the funeral costs automatically. Usually, the family needs to pay for those expenses upfront. Money from the insurance policy can be acquired after placing a death claim. The process of claiming the payout can take weeks or even months.

What is covered in a funeral plan?

Various services can be included in a funeral plan, including the funeral director’s service, coffin, church services, celebrant’s fees, limousines, a burial plot, crematorium fees, flowers, headstone cost, wake and catering costs, etc. Granted, not all of these services are included in every plan.