Funeral Cover Plans comes in all shapes and sizes…
There are essentially two types of funeral cover on the UK. On the one hand there are the funeral expenses cover policies. They are sometimes call pensioners funeral cover or seniors funeral cover or standard funeral cover. What they are is life insurance. Until our rather silly Financial Services Regulators changed the rules, these were often very good policies, so old ones may well be good (look for “with profits,”) They combined protection against inflation with decent cash values if finances got too stretched. Sadly, those sort of policies probably don’t even exist for new clients these days, so we are left with mainly what is called “non profit whole life” funeral cover
policies. which are much less heavily regulated. The good old fashioned ones have in effect been regulated out of existence. They do offer attractive premiums BUT:
- In most cases, there is NEVER a cash value until you die. This means that missing a payment or two while you are ill could mean losing every penny you have put in.
- In most cases, there is no INFLATION PROTECTION funeral expenses cover. This means that the policy which would have covered the cost 5 years ago would now only cover two thirds of it. In ten years it might cover less than half and in twenty years not a lot!
- In most cases, you could end up paying in more than you get out (though one or two now guarantee to return any surplus, but with no interest!)
- In most cases, you won’t get a full payout if you die within 2 years (it is 6 months with some).
- Make sure, in writing, that the policy will pay out on death WITHOUT PROBATE, or there could be a 3 to 12 month delay in payout and substantial costs.
- More on these type of plans here.
Funeral Cover Warning
Please do ask the questions above if you decide to go for online funeral cover or seniors funeral cover with is based on an insurance policy. Cheap funeral cover is often just what it seems to be: cheap! We are unconvinced that this sort of cover is a good deal, so we don’t offer it except in special circumstances.
Prepaid Funeral Cover.
The second type of Funeral Cover is available to people of all ages from 18 to 120, and health is not an issue. Prepaid funeral plans are pretty complicated to understand unless you are used to the jargon. Many make what we would consider misleading claims, though of course it is explained in the small print. But even we have trouble and have to ring up and ask for clarification sometimes – and we’re experts!
With prepaid plans, if you pay in one go, then the undertakers costs are normally guaranteed. There is an inflation linked allowance for the third party costs (cremation/ burial, doctors fees). Some do offer guaranteed on that element to but there are strings attached and extra costs.
You can pay in installments, typically over up to ten years, and at least you will have paid for a proportion of the funeral if you don’t manage to complete all the payments.
If you want to have a look at some of the providers, click this link – but better yet, give us a call on 0800 0588 240. Or use the enquiry form. We will be happy to chat things through and make a recommendation to you – all we ask is that you use the form we send if you accept our recommendation so we get some recompense from the providers for our efforts.
Some of the names used for life insurance type plans might include funeral covers for pensioners, standard funeral cover, pensioners funeral cover, seniors funeral cover, funeral cover for pensioners, one life funeral cover. funeral cover over 80. Should any of those be trade names, I am sure our comments don’t apply to them – but please do ask the questions!