Planning for the future is an essential part of life, especially when it comes to easing the financial burden on your loved ones. Here, the two common options you’ll need to consider are funeral plans and over 50s life insurance.
If you’re looking to ensure your family is financially supported after you’re gone, both of these options can provide that security during a challenging time. However, they work in different ways and are tailored to different needs.
In this blog, we’ll explore the benefits, limitations, and main considerations for both options, so you can decide which might be best for your needs. Understanding the key differences between these options can help you ensure peace of mind for yourself and your family.
What is a Funeral Plan?
A funeral plan allows you to pre-pay for your funeral at the current prices. You can choose to pay either a lump sum or through monthly instalments over one to ten years. Typically, a funeral plan covers essential services such as:
- Church service
- Funeral director’s fees
- Viewings
However, it may not include additional costs like flowers or burial plots. The specific coverage will depend on your budget and the provider you select.
What is Over 50s Life Insurance?
Over 50s life insurance is a good alternative to a funeral plan. It’s an affordable way to leave money for your loved ones when you pass away.
National Friendly’s Life Insurance is available to UK residents aged 50 to 80 and can be used for various purposes, including:
- Contributing towards funeral costs
- Providing a financial gift to family members
- Leaving money to settle unpaid debts
You should also note that this insurance is not a savings or investment product and has no cash value unless a valid claim is made. That said, interestingly, around 40% of buyers choose these policies specifically to cover funeral expenses.
Want to learn more about these policies and how you can effectively plan for your future? Consult Zenco’s legal experts today.
“When discussing funeral plans and over 50s life insurance with my clients, I often emphasize that both options can be valuable tools for planning ahead. It’s all about finding what fits your family’s needs best. Knowing you’ve taken steps to ease their financial worries can be incredibly reassuring.” —Martin Clements, Over 50s Life Insurance Expert at Zenco
FAQs About Funeral Plans and Over 50s Life Insurance
1. Can Over 50s Life Insurance Cover Funeral Costs?
While over 50s life insurance isn’t designed to cover the entire cost of a funeral, the cash sum from the policy can be used to alleviate some of the financial burden during a difficult time. It gives you a way to contribute towards your funeral expenses, providing your loved ones with essential support.
2. Can I Have Both a Funeral Plan and Over 50s Life Insurance?
Yes, you can have a funeral plan and an Over 50s life insurance policy. The cash sum from the life insurance can be used for various expenses beyond just funeral costs, such as covering unpaid bills or as a financial gift to a family member. While a funeral plan specifically addresses funeral expenses, the life insurance policy can provide additional financial security for other needs.
To Choose Between Funeral Plans or Over 50s Life Insurance, Contact Zenco
At Zenco Legal, we aim to make legal services easily accessible to everyone. If you’re considering getting an Over 50s life insurance policy, our legal experts can walk you through the process.For more information on our services, check out our guides or book an appointment now.
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