What is the Funeral Benefit Option?

The Funeral Benefit Option, also known as a Funeral Funding Option, is an additional free benefit available with most over 50s life insurance policies.

It can be included with your policy to ensure that the lump sum pay out is paid directly to a funeral director upon your death to help cover your funeral costs.

As part of this agreement, you’ll also be eligible for a discount (typically up to £250 or £300 depending on the insurer) towards the cost of your funeral.

The Funeral Benefit Option means that your family will have additional support to arrange your funeral and won’t have to worry about managing the life insurance pay out during a distressing time.

It’s possible to get this FREE benefit when taking out selected over 50s plans through Reassured, an award-winning, FCA-regulated broker.

Over 50s life insurance starts from just £5 a month + . Fill in our simple online form for your free, no-obligation quotes.

How does the Funeral Benefit Option work?

How the Funeral Benefit Option works varies slightly between different insurers, but typically the process is as follows:

Fee Free

When taking out your chosen over 50s life insurance policy, you may be asked if you’d like to include the free Funeral Benefit Option.

Funeral Director

If you choose to add this feature, you’ll be appointed a trusted local funeral director who’ll receive the lump sum pay out from the insurer when you pass away.


After your family make a claim on your policy, they’ll just need to call the appointed funeral director who’ll commence your funeral arrangements.

Policy Term

Your pay out will go straight to the appointed funeral director to help cover your funeral costs. There’ll also be an extra contribution towards the overall cost (up to £300 depending on the provider).

It’s important to note that, with some providers, like One Family, the Funeral Benefit Option is built into their policies as standard. This means you’ll need to opt out of this feature if you don’t want it.

How much does a UK funeral cost?

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).

Which is the best Funeral Benefit Option?

In the table below, we compare some of the different Funeral Benefit Options available from leading insurers to help you identify which could offer the best deal.

We look at the key features, including the over 50s plan maximum pay out amount, contribution amount and chosen funeral partner, of each of the providers.

Features SunLife logo OneFamily logo Legal & General logo Post Office logo Cover Today logo
Over 50s plan maximum pay out£18,000£20,000£10,000£10,000£22,000
Age criteria50 - 8550 - 8050 - 8050 - 8050 - 80
Additional funeral contribution£250£300£250Up to £250£300
Funeral director partnerDignityGolden CharterDignityCo-op FuneralcareGolden Charter

The information in this table has been taken directly from the insurers websites and is correct as of 05/06/24

At Reassured, we can help you arrange up to £20,000 of cover to help your loved ones with funeral costs from SunLife or One Family (exact amount depending on your age, smoking status, chosen provider and budget).

In addition, we can only arrange a Funeral Benefit amount up to £300 through One Family if you purchase your policy directly through Reassured. Get your free, no obligation over 50s life insurance quotes today.

How much does the Funeral Benefit Option cost?

If offered when purchasing your over 50s life insurance policy, or if included as standard in your policy, the Funeral Benefit Option is free.

You just need to pay your monthly premium to keep the policy in place so that your loved ones receive the lump sum pay out and Funeral Benefit Option contribution when the time comes.

Over 50s life insurance through Reassured starts from just £5 a month.

The cost of your policy will depend on:

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

The table below shows some example over 50s plan monthly premiums with SunLife and One Family, based on a non-smoker taking out £4,000 of cover:

Age SunLife logo OneFamily logo

xOne Family only provide cover up to age 80, therefore we can’t display pricing for this age

The cost of over 50s life insurance various significantly between different insurers, which is why it’s important to compare quotes to find the right deal for you.

At Reassured, we can help you compare over 50s life insurance quotes free of charge, as well as provide all the informed you need to make a fully informed decision.

How much over 50 life insurance do you need?

Enter your financial commitments below to understand the level of over 50 life insurance you require.


According to Uswitch, it’s estimated that 23,000 people in the UK will still be paying off their mortgage by age 75.

Although an over 50s plan can’t cover the full cost of a mortgage (as cover is capped at £20,000), it could help to contribute some funds towards keeping your family in their home.


Research by Saga shows that nearly 6 million over 50s owe money on credit cards and loans, with average debt amongst this age group totalling £12,000.

Depending on your personal circumstances, an over 50s plan may not be able to cover all debts (as cover is capped at £20,000) but it could allow you to cover some debts in your name.


SunLife’s Cost of Dying 2023 report found that the average cost of a basic funeral is £3,953, with the overall cost of dying totalling £9,200.

A pay out from life insurance can help to cover all or some of these costs.


Age UK have found that many over 50s and 60s will be reliant on their pension to get by.

Life insurance can provide your partner with a helping hand on top of their pension.


An inheritance can provide your loved ones with a cash gift to spend as they wish.

Alternatively, you could leave a portion of your pay out to a charity that’s close to your heart.


If you already have a life insurance (or other financial protection) policy in place, and/or you have your own savings, factoring these into your sum assured could reduce the level of cover you require - helping you to save money.

£ -

Your total cover estimate

£ 0

Let us help you find our best quotes

Can you cancel the Funeral Benefit Option?

Yes, you can remove the Funeral Benefit Option from your policy at any time for free if you change your mind.

However, it does mean that you may not be able to add it to your over 50s plan again in the future.

It also means that you won’t receive the extra discount towards your funeral costs.

Your family can also choose not to use the Funeral Benefit Option when the time comes, as long as the funeral director hasn’t been instructed to carry out your funeral.

In this case, the extra discount will also not apply.

Funeral Benefit Option additional information

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

Compare over 50s life insurance

Taking out over 50s life insurance to help cover your funeral costs can bring peace of mind for you and your loved ones.

Key features of Over 50s life insurance through Reassured:

  • Offers up to £20,000 of cover (depending on your age, smoking status and budget)
  • Guarantees acceptance to UK residents aged 50 - 80
  • Quick & simple application with no medical questions or exam
  • Receive £300 funeral contribution if you choose to remain opted in for the Funeral Funding Feature (available with One Family Policies Only)
  • Low monthly premiums from just £5 a month

At Reassured, we can help you compare over 50s life insurance quotes to help you find our best deals.

Fill in our simple online form to receive your free, no-obligation quotes.


[1] https://www.sunlife.co.uk/funeral-costs/

Related articles:

Our customers love us
Trustpilot Star Rating

Very easy to understand and very quick

Yes very pleased with my choice very helpful easy to understand and very pleasant transaction all good!

Mrs M Rushworth

Very professional and reassuring

Very professional and reassuring. Life insurance sorted in about 10 minutes.

Stephen Davies

very courteous and friendly

very courteous and friendly. Polite professional and empathic.

Stedroy Fenton

Another happy customer

Another happy customer I am. They are very professional and kind. Fully communicative. I recommend.

Piotr Stepien

Really attentive during the call

Really attentive during the call, good clear guidance throughout. Well done.

Michael Reynolds

Amazing service

Amazing service quick fast and easy and Joey was a star on the phone really help me thanks.

Sera Woolley

I made the right choice and now I feel…

I made the right choice and now I feel relieved that I did.


Really genuine kind and compassionate…

Really genuine kind and compassionate team with great knowledge and friendly approach highly recommend them!

Katelia Merritt

I must say Jake took me through every…

I must say Jake took me through every step and was brilliant, recommend them anytime.

Allan Green

Very happy and everything explained…

Very happy and everything explained well, so glad a took the time to take the call, normally I would say I'm busy. But compared to other company's we save so much more money.

Jenny Berry
We’re rated as 'Excellent' with 78,794 customer reviews