Funeral insurance

Recently, there’s been much coverage of rising funeral costs in the UK.

This is because, in the last decade alone, the average cost of a basic funeral has risen by 62%^[1].

A rise almost three times more than the national weekly wage during the same time period.

In just five years’ time, a basic funeral could cost up to £5,285.

A huge expense to leave behind to our loved ones.

This emphasises the importance of having funeral insurance in place to protect them.

Essentially, funeral insurance plans or prepaid funeral insurance refer to a prepaid funeral plan.

A prepaid funeral plan can be purchased to secure your funeral costs in advance.

It also allows you to manage your own funeral arrangements, sparing your loved ones from this difficult task.

Your choice of funeral plan may be influenced by which funeral director you wish to use.

As some funeral directors’ work in association with specific funeral plan providers.

Or, you may choose a funeral plan provider that works with their own network of funeral directors.

Such as the Co-op, who have a network of over 1,000 funeral directors in the UK.

There are various funeral plan packages available, providing plenty of choice so that you can find a funeral plan that suits your needs and budget.

How much does funeral insurance cost?

The cost of your funeral insurance will depend on the type of policy or funeral plan.

Secure life insurance from just 20p-a-day

Life insurance premiums are determined by your age, health, smoking status, level of cover and the sum assured.

Therefore, the cost of life insurance will vary according to your individual circumstances and the level of risk you may pose to the insurer.

An over 50s plan differs in that premiums are calculated by your age and the level of cover.

Due to this, the sum assured for an over 50s plan is much lower (up to £25,000) and premiums may be more expensive (depending on your age).

Life insurance with Reassured starts from as little as 20p-a-day.

Secure a funeral plan from just £20.38 a month

Funeral plans are a fixed price regardless of your circumstances and are valued based on your chosen tier of plan.

Once the value of your plan has been paid, you’ll no longer be required to make payments and your plan remains in place until it’s required.

Funeral plans arranged through Reassured start from as little as £20.38 a month.

Seniors funeral insurance is much the same as funeral insurance for anyone.

But between the ages of 50 and 85, you’ll have the option of an over 50s plan.

If you’re a senior in good health, then you could secure a whole of life policy.

The age limit for a whole of life policy tends to be the mid-80s.

Though, like an over 50s plan, your age will affect the cost of your premiums.

Term-based life insurance is available for applicants up to the age of 84.

Though the maximum term-length would be 5 years and premiums will be very high.

As a result, this form of life insurance may not be suitable for seniors.

It’s possible to secure senior life insurance from just 30p-a-day.

A funeral plan guarantees acceptance regardless of your health or age.

The application is straight forward and you can choose to pay in full upfront for immediate cover.

Therefore, a funeral plan may provide a simple funeral insurance solution to protect your loved ones.

Whether you’re over 50, 70 or even 80 years our dedicated team can help you secure senior funeral insurance.

Whilst the average cost of a funeral in the UK is £4,417 there are a large number of additional costs associated with dying, such as legal advice, taxes and probate.

As a result, this brings the current average cost of dying to a staggering £9,494.

Most of these additional costs won’t be covered by your funeral plan and therefore, could financially burden your loved ones.

It’s possible, budget permitting, to simultaneously have a prepaid funeral plan and a life insurance policy in place; offering your loved one’s comprehensive funeral insurance.

Buying a prepaid funeral plan will freeze funeral costs and provide you with the option to arrange your own funeral.

Then a percentage of the life insurance pay out could be used to pay off other associated costs.

Arranging both life insurance and a funeral plan through an independent broker, such as Reassured, ensures you get the right solution, at the best price.

The best funeral insurance will be the one that’s most suited to your needs and budget.

For example, a funeral plan may be the best form of funeral insurance if you’d prefer to have control over your own funeral arrangements.

Especially if your loved ones aren’t aware of your end of life wishes.

In fact, according to a survey conducted by Sunlife, 1 in 5 of their participants didn’t know any of their loved ones’ funeral wishes at all.

To help you decide on the best funeral plan, see our top 10 funeral plans article.

On the other hand, the best funeral insurance may be a life insurance policy.

Life insurance can be used to cover all the necessary costs associated with dying, but may also leave behind a cash sum for loved ones to enjoy as inheritance or any way they wish.

Contact our award-winning team for all the information you need to make an informed decision and to secure the best funeral insurance for you.

^*£20.38 per month includes a £75 discount only available to Co-op members, based on a 50-year-old purchasing a Simple Funeral Plan at £3,220 after discount with 25 years payment term (total amount payable £6,115.40), as of 20th November 2020

[1] https://www.sunlife.co.uk/siteassets/documents/cost-of-dying/SL-cost-of-dying-report-2020.pdf