Should I Choose A Funeral Plan Or Life Insurance?

You may be wondering which is your best buy, a pre paid funeral plan or life insurance. 

 

Our helpful comparison table below may give you just what you need to make a decision, for more detailed information, further enquiries may be needed as everyone’s circumstances can differ.

 

Some funeral plan services require a large upfront payment (some starting at £1,200) which rules out those without the means or on lower incomes to be able to afford it.

Life Insurance Vs Funeral Plan, what's the best for me?

Thankfully, pay monthly plans were introduced partly to address this issue.

 

You may be looking for the most cost-effective solution for a friend or loved one/relative/family member, which is good because it’s much better to be prepared for the future, so you are ready when it happens.

One big plus for a pay monthly funeral plan is that the home or estate can be reduced in size as soon as it’s finalised, meaning it is possible to qualify sooner for government assistance if the need arises, for a care home.

 

Of course the point in a funeral plan is that it will pay out upon death.

Funeral Plan Do's & Dont's

DO...



DO Ensure there are a number of funeral directors locally that come included with your plan.

One of the best benefits of comparing funeral plans to life insurance is that it guarantees you receive agreed upon services without any difference in pricing. This is actually a key point as prices are rising year-on-year.

As that may be something they don't offer cover for. For example, 'green burials' or natural burials may include different necessities from one provider to the next.

Some funeral plan providers also have set plans for example, basic, intermediate and advanced; which cover the basics, this on one hand make things more practical, but on the other may miss out things that you want for the funeral. So that depends on individual requirements.

DON'T....



DON'T Take a plan out until you are sure about these details: This may differ from one regional area to another, so make sure you ask about specifics such as type of coffin, relocation distance, limo, doctors, cremation, minister's fees, the wake, etc.

It's really important to read the small print whichever you choose, especially with regards to funeral costs as that can encompass a whole host of things (see below).

For example some life insurance policies may have stipulations based on the age of the insured. Likewise, ensure that in the case of either funeral insurance or a funeral plan, guaranteed payment covers funeral costs.

Life Insurance Comparison Table

Life InsuranceFuneral Plans
Depending on the policy (read the small print) your life policy may pay out a lump sum upon the insured's deathProtection from the increase in funeral costs
Probably best if you are under 50 years' old (may not work out worthwhile if you're over 50)Very practical for most people & situations
Competitive, Low monthly premiums - affordable for most peopleBoth Quick & Easy to arrange
Flexible payments based on your budget
Avoid any hidden financial surprises your family may get when they arrange your funeral.
Get your 100% free life insurance quote:
To get a free funeral plan quotation fill out the quick form below

Life Insurance & Funeral Plan FAQ:

Why A Funeral Plan?

 

Many families are struggling to make ends meet and unfortunately when a death occurs in the family; dealing with the grief can be extremely difficult and stressful.

 

Having to pay for a funeral without having the funds to hand can be an added source of pressure and stress. Knowing that it’s covered means it’s one less thing for you (and loved ones) to worry about, as well as being able to afford exactly the kind of funeral you want. Planning ahead will mean less chance of financial stress for your family to worry about.

Is It Really Needed?

Death happens to us all and although it’s a morbid subject to deal with, alas it has to be dealt with. The best way by far is tackling it head on, as opposed to waiting until the event happens, and not being prepared financially for it – potentially leaving family members to have to find funds themselves.

 

Take into consideration the fact that if you are cohabiting in an owned or rented property with family, a house sale may not be the most practical thing to do in order to pay for your funeral. Raising the funds required to pay for a funeral can take longer than expected.
 
In some cases a Grant of Probate is required (from the court) before anything is allowed to be sold. The question is really, ‘can my family fund my funeral when I die?’ without using funds from your estate/belongings, or taking on debt.

Ways To Pay For My Funeral?

Is it possible to pay for my funeral with alternative options?Yes, there are 3 other ways it can be done. Depending on personal budget, situation & circumstances.

Pay monthly Funeral Plan

Pay for your funeral ahead of time, plan your funeral the way you would want it. Flexible monthly payment options.>> Enquire here! <<

Life Insurance

You could potentially leave a cash lump sum for loved ones, which they could in turn utilise to fund your funeral expenses.
Premiums are usually tailored to individuals, so can be quite affordable.
Required to continue paying for life otherwise policy becomes void (in most cases). Possibility of paying in more than what gets paid out – Read the small print.

Personal Savings

It is entirely possible to save something every month to be able to afford all the  funeral expenses. This could involve setting up a savings account with a monthly standing order so it accumulates automatically.
The cost of funerals is actually going up year on year, so you would need to make sure it can cover that eventuality also. Another consideration is if care, or emergency situations are required, more savings will be needed to pay for it.
With savings or a cash ISA, probate will be required to access/withdraw the funds, performed by your executors, which can be very time consuming.

Government Help?

A government scheme does exist, for those who are eligible for it, that can offer financial support, however it is not guaranteed.

 

Statistics from the tax year 2014/2015 report that just over half (58%) of those who requested government help with funeral costs actually received the funds.*

 

On average, each individual case received £1,375 towards the cost of funerals. This would clearly not be sufficient for a basic funeral. However, it would mean that less is required to cover the remaining expenses.

 

*Source Annual Report by the Secretary of State for Work and Pensions on the Social Fund 2014/2015.