When researching later-life financial planning options, you may be considering funeral plans or life insurance. Both options allow you the peace of mind that your family will be supported financially but in different ways.
Funeral plans let you choose and pay for your funeral in advance so your loved ones don't have to cover the costs or arrange the logistics. Life insurance, on the other hand, is a way to ensure your family will receive a lump sum of money should you die during the period you've chosen to be covered for.
Learn more about how a funeral plan or a life insurance policy differs to help you weigh up each option.
You'll need to know how funeral plans work to determine whether or not getting one is suitable for you.
The process of taking out a funeral plan will follow these steps.
At Distinct Cremations we offer cremation only funeral plans and plans for modestly attended funerals.
We're happy to answer any questions you may have about our plans over the phone, or you can request a free guide for details about what we offer. If you've decided a funeral plan is right for you, you can also view our products and take out a plan online.
Want to talk through our options? If you have questions or would like some in-person support we’re just a call away.
Call us on 01543 212997
Need some time to digest the details? You can download a PDF of our guide online or get a printed copy posted out.
Get our guide
If you’re happy that one of our plans is exactly what you’re looking for, you can get everything set up yourself online.
View our funeral plansWhen you take out a life insurance policy, you pay for it monthly for a set period of time. Should you die within this time period, your spouse, children or the person you would like to benefit will receive a lump sum payout.
You can choose the amount of time you would like to be covered for as well as how big you would like your payout to be. Both of these choices will affect how much you pay.
Depending on which type of life insurance you choose, your payout amount could increase, decrease or stay the same over time.
If you’re getting life insurance to cover your family's living costs, the cost of living is likely to rise over time.
There are policies available where the payout increases to account for inflation, but it's worth noting that the monthly payments will also rise.
If you’re covering yourself against an expense or debt that will decrease over time, for example your mortgage, you can get decreasing cover.
As you owe less money on your mortgage, your family will receive a smaller payout amount to pay it off.
If you’re happy for your loved ones to receive a set payout that doesn't change, life insurance with a fixed payout is available too.
Monthly payments for this type of cover will also be fixed so they don't change for the duration of your policy.
Your age will affect the price you pay for life insurance cover. The older you are, the more expensive it is.
You will also be asked medical questions to determine whether life insurance can be offered to you. These can affect how much your monthly payments will be as well.
Whilst looking into life insurance policies, you may also come across other products like over 50 life cover or life assurance.
Whereas life insurance is cover for a fixed amount of time, life assurance covers you for the whole of your life.
Important
The terms life insurance and life assurance can sometimes be used interchangeably, so always check the specific policy you're taking out for details of your cover period and payment terms.
Funeral plans and life insurance are designed for different purposes and it is completely possible to take out both at once.
Just make sure that if you're paying for both monthly you can keep up with the payments. Your funeral plan may be cancelled or your life insurance cover may end if too many payments are missed.
Taking out both a funeral plan and a life insurance policy means:
+ Funeral costs were £1,835 in 2004 and £4,141 in 2023 (SunLife Cost of Dying Report 2024, sunlife.co.uk/funeral-costs)
| Funeral plan | Life insurance | |
|---|---|---|
| What is the cover commonly used for? | To pay for a funeral that suits your wishes | To pay off a mortgage or financially support your children or spouse |
| What happens when you die? | Your funeral goes ahead as agreed as long as all qualifying payments have been made | A payout is made if the person covered dies during the timeframe their policy covers them for |
| Who receives money? | Your chosen funeral provider after they've carried out your funeral to cover the costs | The person of your choice |
| How do you pay? | Either upfront or in monthly instalments for a set time | In monthly instalments for the duration of your policy |
| Are there age restrictions? | Plans are available for adults of all ages | There may be upper age limits around 75-85 |
| Are there medical checks? | No – eligible regardless of health | Yes - there will be medical and lifestyle questions |
For both life insurance and funeral plans you will need to decide what happens after your death.
We offer plans for simple, no fuss cremation funerals.
Choose between our Unattended Direct Cremation Plan, Small Attended Cremation Plans or full length celebrant-led Simple Funeral Plan.
For additional pricing information and a full list of our optional extras, please see our price list.
Our Unattended Direct Cremation Plan is a great choice for those looking for a simple, low-cost unattended cremation without a funeral ceremony.
With our Unattended Direct Cremation Plan, the cremation takes place with no service or mourners present at our high-quality crematoria where dignified care is guaranteed.
Our Small Attended Cremation Plans offer a private funeral where the number of people attending is limited to a small gathering of friends and family.
With our Small Attended Cremation Plans, you can have up to 8 people attending a 10 minute service or up to 20 people attending a 20 minute service.
The option to have a completely unattended funeral means you can save money and your family can celebrate your life in their own unique way instead.
Funeral plans and life insurance meet very different later-life financial planning needs. Whether or not either option is worth your money depends on what you want to happen when you die.
Do you want to pay for your own funeral or get a payout to support your family?
The amount you pay for your funeral plan or life insurance varies widely depending on what you choose. Factors like your age can also affect the amount you pay.
Funeral plans could be a good option for you if you worry about how your family will cover the costs of your funeral.
Even if the money for your funeral could be taken from your savings, property or other assets, some of your money could be lost to inheritance tax and it can take time for funds to be released. Funeral providers often need a payment or deposit upfront to start arrangements so your family could have to cover the costs initially.
Factors that affect the amount you pay are:
Life insurance could be a good option for you if you worry about how your loved ones would cope financially if you die.
You may have children who are at school or university and are financially dependent on you. Or it's possible you have a spouse who relies on you to pay the mortgage. You may just want to gift your loved ones money in the event of your death. A life insurance policy means that if you die whilst covered you can still support your loved ones.
Factors that affect the amount you pay are:
Providers of both funeral plans and life insurance products are subject to regulation to help protect consumers' money.
Distinct Funeral Plans Limited (DFPL) is authorised and regulated by the Financial Conduct Authority (FCA) to sell and administer funeral plans. As part of our regulatory responsibilities, we provide full and clear information about how we keep our funeral plans safe.
Companies that sell life insurance products are authorised by the Prudential Regulation Authority (PRA) and regulated by the FCA and PRA. They are also subject to the same regulatory standards, designed to enhance consumer protection and to protect the integrity of UK financial services markets.
How we keep your money safeTo help you continue your research into the financial products available to you and plan for later life, you may find these other resources helpful.
Decided that a funeral plan is right for you? Find out how to choose a plan that takes your funeral wishes and preferences into account.
Choose a funeral plan
As well as planning financially, there are some other important ways you can prepare yourself and your family for your death in the future.
Prepare for your death
If you need to arrange a funeral for someone else, whether now or in the future, we can provide a compassionate cremation funeral.
Arrange a funeralBelow are a selection of reviews from those who have purchased a funeral through Distinct Cremations.
Oak Tree Court, Brookfield Drive, Cannock, WS11 0JN
