Over 50 life insurance vs a prepaid funeral plan?

Over 50 life insurance vs a prepaid funeral plan? main image

There is a very long history of people wanting to make sure that adequate provision has been made for suitable funeral arrangements when they die – so-called burial societies were around as early as Roman times.   

Similar concerns are just as alive today and there are two main approaches to make suitable provision for the cost of a funeral when the time comes:   

Over 50 life insurance

  • the first of these continues an approach that was widely adopted by many friendly and mutual societies in 19th century Britain – the principle of putting aside a small amount each month into an insurance policy which pays out when you die, with proceeds that may be used to pay towards your funeral
  • the concept has been developed and refined so that today’s choice for such cover is probably the over 50 life insurance policy
  • just as the name suggests, these are whole of life insurance policies for those over the age of 50
  • unlike other life insurance policies, however, acceptance is guaranteed and there is no need for any medical – whatever your lifestyle choices and even if you have been refused life cover elsewhere or have a pre-existing medical condition. Premiums are fixed and may start as low as just £3.90 a month – so involve only minimal financial commitment
  • this secures a guaranteed payout upon your death (as long as you keep paying the premiums of course) and this may be used towards your funeral expenses
  • it is important to remember that premiums remain payable for the rest of your life – or, with some policies, until you reach the age of 90 – and there is no cash-in value if you stop payments before then
  • it is worth considering whether the amount you pay in by way of premiums will exceed the value of the eventual payout – which itself may have been reduced by the effects of inflation – so make sure you do your research
  • although you may express your wishes for the cash settlement to help pay for your funeral, the money is paid to your designated beneficiary for that final decision

Prepaid funeral plans

  • although these typically cost more than over 50s life insurance, prepaid funeral plans might offer a preferred approach to the arrangements to be made upon your death
  • in place of a cash sum paid out to a designated beneficiary, a prepaid funeral plan guarantees the cost of funeral director’s services and the payment is made directly for the arrangements you have chosen in advance
  • since those services are paid for at today’s prices, there is nothing more to pay, even though the funeral director’s costs are likely to have increased by a significant amount when the time eventually comes
  • a prepaid funeral plan, therefore, may help you beat the ravages of inflation and save your family the financial hardship of trying to meet the much higher anticipated costs in the future
  • you can also make your final arrangements, such as the music to be played, the type of coffin you want etc., saving your loved ones making any difficult decisions at an already emotional time
  • thanks to a code of practice followed by registered members of the Funeral Planning Authority, the money paid in advance for your funeral plan is fully protected – either by its deposit in a trust fund, or through the purchase of a life insurance policy in your name


Both over 50s life insurance and prepaid funeral plans typically offer reliable solutions to the question of financial provision for your funeral. Over 50s life insurance offers an economic and readily accessible solution, although a prepaid funeral plan may offer a greater degree of certainty and financial security.    

Why not compare prepaid funeral plans and over 50 life insurance policies now so you can find the best funeral plan solution for you?

Don't miss out...

Sign up to our monthly newsletter for the latest updates