Post Office Funeral Plan Review 2021 – Our Verdict

Post Office Funeral Plan
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Pre-Paid Plans are no longer a product offered by Post Office Money.

Existing Planholders who need help should call the Post Office Prepaid Helpline 0800 033 4301. Lines are open 24 hours a day, 365 days a year.

We do not recommend any form of Over 50s Insurance which is non profit whole of life (which nearly all are.)  Why not contact the Prepaid Funeral Review Team on 0800 0588 240 for a recommendation?

The Post Office Plan we saw initially is simply an over 50s life insurance policy. The small print says (and I quote directly) “if you stop paying your Over 50’s Life Cover will end and you wouldn’t get anything back.” This is absolutely normal for these types of plans.  If you don’t pay within 30 days, you have lost every penny that you pay in.  So a simple bank mess up could throw away all those premiums if not resolved within 30 days.  And it is really easy to cancel a direct debit after a few years because you have forgotten what it is!  Nothing specifically against the Post Office plan – we just don’t like this type of plan at all.

Funeral Plans are not all the sameThe plans which the Post Office now offer are not what we at the PrePaid Funeral Review consider to be “proper” plans.    That doesn’t mean they are no use.   The Post Office Funeral Plan (Over 50s version) just produces a specific sum of money to be paid out when you die.  It may or may not be enough to pay for your funeral.   Paying for your funeral is rather the point in our opinion!

Post Office Life Insurance Plan.

Provides a cash lump sum when you die to help with funeral expenses.

Age limits 50 to 80.

Maximum death benefit is £21,449 (if you can afford the premiums!)


  • You choose the amount payable on death (and hence the premiums).
  • Level benefit basis (i.e. no inflation proofing).
  • Life cover!
  • Terminal illness – fairly oddly for a funeral plan, it will pay out in advance under certain circumstances if the Doctors say you don’t have long to live.
  • Guaranteed acceptance.
  • No medical screening.
  • Guaranteed premium – no increases.
  • Double pay out if accidental death after first 12 months.
  • Full premium refund if normal death within first 12 months (but will pay out if death is accidental.)

The Post Office Funeral Plan does not cover:

Natural death within first 12 months.

What is the ‘Benefit Option’ on the life policy?

The Benefit Option available with burial or cremation is a benefit available free with Post Office Over 50’s Life Cover. It enables the fixed lump sum death benefit from the  Post Office Plan version of the Over 50’s Life Cover plan to be paid direct to Co-op Funeralcare. It is then used to contribute towards or pay for your funeral.

With a Post Office Plan, Co-op Funeralcare can record any wishes you may have about your funeral arrangements.

Co-op Funeralcare will make a £250 Contribution towards the cost.

How does the Funeral Benefit Option work?

You can select the Option by completing the Application Form and ticking the funeral benefit box. Alternatively, you can select the Option over the phone when setting up your life insurance direct with Aviva Life & Pensions UK Limited, the product provider for Post Office Over 50’s Life Cover.

Post Office Funeral Plans Review verdict?

There are exceptional circumstances where this sort of cover is right, but they can never be as satisfactory as a proper prepaid plan. Get our Free Guide, or just give us a ring on 0800 0588 240 and we will help you make a wise choice.  We’ll also give you a nice Bonus when you take out the plan through our one of our agencies.

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