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Compare Funeral Plans to Over 50s Life Insurance

How Does a Funeral Plan for Over 50s Compare to Life Insurance or a Savings Account?

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Making arrangements to cover the costs of your funeral in advance is a smart and thoughtful way to protect your family from ever-growing expenses. However, simply leaving some savings to the side might not be the most effective means of pre-paying for your funeral.

Taking out a Funeral Plan or Life Insurance are both practical options for putting the money aside, but there are several benefits that Funeral Plans have over Life Insurance for funeral costs.

However, it can be useful to know exactly how much your family will receive. Some people choose to take out a funeral plan to cover the key funeral costs, and a life insurance policy to put some money aside as a safety net to support loved ones.

Funeral plans freeze rising costs

The first difference to note between funeral plans and life insurance for over 50s is that funeral plans usually have a fixed cost that you can either pay upfront or in instalments.

A funeral plan guarantees to cover the costs of the funeral services set out in your plan, no matter whether the costs have risen since you bought it. A life insurance policy will only pay the agreed amount, regardless of changes in funeral prices, leaving a possibility that your loved ones could be left with more to pay to when the time comes.

Funeral plans don't rely on unpredictable interest rates

Putting money aside into a savings account can feel like the safest way to plan ahead, as it’s more flexible to changes in your circumstances. However, aside from the possibility that you might dip into your savings and fail to leave your family enough funds, you might also find that your savings are unable to keep up with the rising costs of funerals.

The cost of a funeral has continued to increase, but interest rates remain low. And so by the time the money is needed, you might find it covers less costs than when you first started saving.

If you already have some savings put aside, you can make the most of those savings now with an Age Co Funeral Plan. Funeral costs are projected to rise even higher over the next few years, so why not freeze the cost now, and put all the arrangements in place so that your loved ones don’t have to.

Funeral plans offer cancellation flexibility

With Age Co funeral plans, you can cancel at any time and receive a full refund of all payments that you have made so far. In addition to this, if after your death your funeral organiser decides not to use your plan, your estate can also claim a full refund on the plan. Most providers charge a fee when cancelling a plan. Age Co doesn't charge any fees.

With an over 50s life insurance policy, on the other hand, you’ll usually find yourself paying a series of monthly instalments either for the rest of your life or until your reach the age of 90. And if you miss a payment or cancel the policy then you could lose everything that you’ve already paid in.

Funeral plans let you know exactly how much you’ll pay

With a funeral plan you have the option to pay for your plan up front, or spread the cost over a fixed period of time.

However, with life insurance, the monthly payments continue indefinitely, and if you’re lucky enough to enjoy a long life, you could find that you have paid much more than your policy pay-out is worth.

Funeral plans provide support for your loved ones

Another benefit of funeral plans is that with everything planned out and the services included in the plan paid for, it only takes a phone call from one of your relatives to put the plan into place with no paperwork or claims forms.

This can help alleviate some of the stress that comes with planning a loved one’s funeral and will allow them to focus on the personal touches that make the funeral so meaningful.

Like life insurance, savings do not ensure that your funeral arrangements are in place. This means that your loved ones are left with the responsibility of arranging what they believe you to have wanted, which can be a particularly stressful time when grieving.

 Funeral PlanSaving & investmentsOver 50s life insurance

Freezes costs of the services in the plan at today's prices

Guarantees to beat the rising cost of funerals

Guarantees to cover Funeral Director's costs included in the plan

Guarantees to cover crematorium and minister's fees^ included in the plan for a cremation funeral

Provides help and support with funeral arrangements

Offers the support of a nationwide network of trusted Funeral Directors

Remains unaffected by drops in interest rates and rising inflation

Can only be used for funeral costs

Guarantees acceptance for people aged 50 or over, with no upper age limits

No need for any medical or health questions

Find out more about how the Age Co Funeral Plans compare.

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Funeral Payment Options

Age UK Enterprises Limited trades under the trading name Age Co.

Age UK Enterprises Limited (registered in England and Wales no. 3156159) is a trading subsidiary company of Age UK (registered charity, no.1128267) and donates its net profits to Age UK.

The Age Co Funeral Plan is provided by Advance Planning Limited, a company incorporated in England and a subsidiary of Dignity. Registered office: Advance Planning Limited, 4 King Edwards Court, King Edwards Square, Sutton Coldfield, West Midlands B73 6AP. Registered in England, no. 3292336.

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