Generally speaking, both whole of life insurance policies and funeral plans are taken out by those in later life.
Whilst the pay out from a whole of life insurance policy can be used to pay for your funeral, it can also be used by your beneficiaries for whatever they want.
In contrast, a funeral plan, as the name suggests, can only be used to pay for a funeral.
The average cost of a funeral has risen by 130% since 2004 and it shows no signs of slowing down.
This highlights the need to address how your loved ones will provision for your ceremony.
Whilst a funeral plan allows you to lock in today’s prices, they are often criticised for not covering all third-party costs, (doctors’ fees, minister fees etc.).
Whereas, whole of life policies can be used to cover the full cost of your funeral but do not allow you to avoid future price rises.
They are also suitable if you are looking to cover the cost of your funeral alongside other expenses; outstanding debts, an inheritance or to help with day-to-day living costs.
Some funeral plans, however, do allow for third-party costs to be covered, therefore if this is your only reason for arranging cover, this option may be more suitable.
Simply get in touch with one of our award-winning team and we can help you find the best solution to suit your needs.
Read our in-depth article on life insurance vs funeral plans »