For a lot of people, funeral costs thinking is quite disturbing – yet, funerals are among those things families have to deal with suddenly in their life. In the UK, the average funeral has risen to the level of a few thousand pounds nowadays, and this can be the cause of the financial difficulties of the family circle. A life insurance policy for the over 50s is a great way to make sure that you have included all the necessary arrangements to cover the costs and that your family will be supported at the time of your passing.
How Over 50s Life Insurance Helps with Funeral Costs
Over 50s life insurance is a type of cover that always pays out if the policyholder dies. People aged 50 to 85 will generally have a no health condition check and all will be accepted. The sum assured might be small, but it is usually enough to:
- Contribute to the funeral arrangements
- Pay for any memorial or cremation services
- Support your family financially during the time of grief
There are some companies like Sun Life, who provide a funeral benefit plan where the payout can be given to the funeral home directly to take care of the expenses.
Benefits of Using Life Insurance for Funeral Planning
- Peace of Mind – You will not have to worry about your loved ones getting any unexpected bills.
- Economical Premiums – You will be able to select a monthly payment that suits your budget.
- Cover is Guaranteed – All individuals aged 50–85 will be accepted.
- The Payout Can Be Used in Different Ways –The families can decide on how to use the money.
Key Things to Consider
- The sum assured is commonly small, and such money might not be enough to cover all the funeral expenses.
- You will still be required to make premium payments throughout your entire life (or until a certain age, as per the provider’s terms).
- In case you survive for a long time, the total amount of premiums you have paid might be higher than the sum of the payout.
Who Should Take Into Account an Over 50s Funeral Policy?
The major beneficiaries of this type of coverage are those who desire to:
- Give their families peace of mind that the funeral expenses will be fully covered.
- Ensure that their relatives will not experience any monetary difficulties as a result of them dying.
- Offer a small present or make a minor financial contribution to the family members.