Often it’s asked what’s more suitable, a prepaid funeral plan or a life insurance policy.
The answer comes down to what it is you’re looking to protect.
Typically, it would be suggested beneficial to have both. For example, a funeral plan to cover the funeral director costs and lock in today’s price, alongside life insurance to cover all third-party fees.
But with a Co-op funeral plan, all third-party fees are already accounted for.
As a result, if you’re only looking to cover the cost of your funeral, it’s likely a Co-op funeral plan would suffice.
However, if you’re looking to protect your family from other costs, such as your mortgage or outstanding debt, life insurance may be more appropriate.
A funeral plan can only be used to cover the cost of your funeral, whereas life insurance can be used for anything your loved ones deem fit, including an inheritance.
Age may also be a deciding factor in this decision, with a funeral plan being a fixed price regardless of age.
In contrast, the older you are, the more expensive life insurance premiums generally become. Therefore, your budget may dictate which type of cover is available.
Upon a certain age, you may struggle to even get accepted for life insurance as most term-based policies only accept applicants up to a specific age.
In this instance, an over 50s plan with no medical questions may be more suitable. However, these are only available for those aged between 50-85 years.