Funeral benefit option

The average cost of a basic funeral in the UK is currently £4,141 according to the SunLife Cost of Dying report 2024^[1]. This includes things like the cost of a funeral director, cremation or burial fees, and a minister or celebrant to lead the ceremony.

When including other funeral related costs, such as flowers, a memorial and professional fees to administer the estate, the total cost of dying increases to £9,658.

Unfortunately, funeral expenses are only getting more expensive along with the cost of living, meaning that more families are facing financial hardship when arranging a final farewell. In fact, according to the SunLife report, 1 in 4 people said that their standard of living was impacted by paying for a funeral.

You can help your loved ones cover your funeral expenses when the time comes with an over 50s plan. In addition, if you opted in for your policy to include the Funeral Benefit Option, they won’t have to pay the full bill at short notice and will receive the extra discount of up to £300 (defined by your policy terms).

The cost of your policy will depend on:

• Your age
• Smoking status
• Sum assured (cover amount)

If you add the Funeral Benefit Option to your over 50s plan (or choose not to opt out of this agreement), there are some key points to consider:

• The Funeral Benefit Option is only valid if your funeral is arranged by the specified funeral director
• You can add the Funeral Benefit Option at any time after taking out your policy (by directly contacting your provider)
• You can’t add the Funeral Benefit Option to your over 50s plan if you already have this free benefit added to a different policy or if you have a prepaid funeral plan
• If you choose a direct cremation funeral, then you may not qualify for the extra contribution towards your funeral costs as this is a lower cost funeral
• If the pay out amount and contribution is more than the overall cost of your funeral, the remaining balance is typically paid to your estate. If the pay out amount is less, then your loved ones or estate would need to pay the shortfall
• With some over 50s plans, if you pass away during the policy waiting period (typically 12 or 24 months depending on the insurer) your family will still receive the extra contribution towards your funeral costs if the specified funeral provider arranges your funeral (but they won’t receive the full lump sum pay out)
• With some over 50s plans, if you pass away during the policy waiting period, your family won’t receive the full lump sum pay out or the extra contribution towards your funeral but will receive a full refund of the premiums you’ve paid
• Typically, if you pass away due to an accident during the waiting period, your family will receive the full lump sum pay out and the extra contribution (if the specified funeral director is used to arrange the funeral), but the pay out will be paid to your loved ones instead of to the specified funeral director