Should you get a funeral plan or over 50 life insurance for funeral expenses? A 2026 guide
Many people choose betweenover 50 life insurance(an over 50 plan) or a funeral plan to contribute towards their funeral expenses.
An over 50 life insurance policy pays out a cash cash payment to your family members upon death, whereas a funeral plan allows you to arrange and cover your chosen funeral services in advance.
In this guide, we explain the key differences between both options to assist you decide which may be best for you and your family.
You can also compare excellent over 50s life insurance deals through our award-winning broker service free of charge and without obligation.
Quotes start from just £5 a month depending on your age and smoking status + .
At LifePro we can also compare prices for other types of life insurance if you’re not yet 50, such as term life insurance. However, we’re unable to sell funeral plans.
funeral expenses are on the rise in the UK, reaching £4,141 (on average) in 2023 for a basic funeral and £9,658 (on average) for all funeral related costs combined[1].
What is over 50 life insurance?
Over 50 life insurance (also known as an over 50 plan) is a type of policy that provides a cash payout to your family members upon death.
The funds can be used to contribute towards your funeral expenses or towards anything your family members wish, for example:
What is a funeral plan?
A prepaid funeral plan allows you to plan and cover your key funeral services in advance.
upon death, the funds from your policy are paid out directly to your chosen funeral director to carry out your funeral.
You can cover a plan either in one cash payment or in monthly payments over a set term depending on your budget.
A funeral plan usually includes:
What’s the difference between over 50 life insurance and funeral plans?
Life insurance and funeral plans are two different products which can both allow you to help contribute towards your funeral expenses.
Over 50 life insurance provides a cash cash payment payout after you die which isn’t tied to any specific expense, whereas a funeral plan provides a payout that’s only used to cover your funeral services.
Here are the key differences between an over 50 plan vs funeral plan:
< >
Over 50 plan | Funeral plan
---|---
Pays out a fixed cash cash payment upon death | Covers the cost of your chosen funeral services at a fixed price
Funds can be used to contribute towards your funeral expenses or spent in other ways at the discretion of your beneficiaries | Has no cash value; funeral plan payments are used only for your funeral upon death
A fixed monthly premium must be paid(prices are based on your age, smoking status and sum assured). Could be more affordable than a funeral plan | You can cover a plan in full or in monthly instalments (monthly instalments incur additional fees and cost will depend on your age and payment term)
Premium payments must continue until you die or until a specified age (depending on the insurer) | If paying in monthly instalments, the payments will end when the plan has been paid in full or until you die
Waiting period applies (12 or 24 months depending on the insurer) before a claim can be made for the full payout | If paying in monthly instalments, a waiting period usually applies (12 or 24 months). If you die after this period and before the plan has been paid in full, some providers will still payout the full amount to cover your funeral. Although some providers don’t offer this benefit
Guarantees acceptance to UK residents (min age is 50 and max age tends to be either 80 or 85)and no medical questions are asked | Guarantees acceptance to UK residents(min age is usually 18, and sometimes there’s no max age limit) and no medical questions are asked
Can include funeral benefit option (allowing your payout to go directly to your funeral provider) and an extra contribution towards your funeral expenses (up to £300) |
