Over 50s life cover or a funeral plan - which should you buy?

When you start to compare later-life financial planning products, you may come across funeral plans and over 50s life cover. Both of these products let you support your family, spouse or next of kin when you die but in different ways.

Funeral plans let you plan and pay for your funeral in advance whereas over 50s life cover lets you set money aside so that your family receives a payout on your death.

The suitability of either product will depend on your personal circumstances. Getting to know what funeral plans and over 50s life cover both include can help you decide which one suits you.

What is a funeral plan?

Funeral plans are financial planning products designed specifically to cover the costs of a funeral. Funeral plan providers either have the facilities to carry out funerals themselves or relationships with the funeral directors who will do so.

At Distinct Cremations, we have all our own mortuary, transportation and crematorium facilities.

When you take out a funeral plan you can decide what kind of funeral you want and pay for it either upfront or in monthly instalments.

How do funeral plans work?

Wooden coffin with a bouquet of funeral flowers laid on top

Wondering how funeral plans work? Once the payment conditions of your funeral plan have been met, your funeral is guaranteed. This protects you against inflation as your funeral will go ahead as agreed, regardless of rising funeral costs.

A funeral plan can also give you peace of mind that your wishes are clear and your funeral will happen as you want it to.

How do funeral plans work?

Who are Distinct Cremations?

Sue cook plans

We provide funerals across mainland UK and carry out all aspects of your funeral ourselves. Our funeral plans give you the option of an unattended funeral or a small attended service.

We collect the deceased, care for them until the funeral in our professional mortuary, provide a simple coffin and either deliver the ashes back by hand or scatter them for you.

View our funeral plans

If you're concerned about your family being able to afford your funeral after your death or you want to pre-arrange the type of funeral you'd like, a funeral plan could set your mind at ease.

Give our team a call on 01543 211997 today to get your funeral plans in place.

What is over 50s life cover?

As the name suggests, over 50s life cover (which is sometimes also referred to as over 50s life insurance) is available specifically for people over 50. Maximum age limits also apply - you usually have to be under 80-85 to buy cover.

With over 50s life cover, you pay monthly instalments and on your death a lump sum of money is paid out. The payout is set from the start of the policy and doesn’t change. Neither do the agreed monthly payments.

How is over 50s life cover paid for?

Payments need to be made monthly from the time you take out your cover until your 90th birthday. After this point, your cover still applies, but you don’t need to pay any more money. The amount you pay each month is based on your age, how big you want your payout to be and also where you live.

Who is eligible for over 50s life cover?

As long as you're in the right age bracket, you can take out over 50s life cover. There are no questions about your health that need to be answered so the state of your health doesn't affect how much you pay or whether or not you're eligible for cover. This is the same for funeral plans too.

What can the payout be used for?

The money can be used for anything. Your family could put it towards funeral expenses (although it is not guaranteed to cover all funeral costs). Alternatively, the money can be used to pay for other expenses like bills or debts. Or it could be given as a gift to help a family member or your next of kin financially.

Get in touch with us today

If you'd like to chat with someone to explain the details about our funeral plans at any point or you have specific questions you'd like to ask about our services, please do get in touch. We're here for you 24/7.

Call us on 01543 211997

Useful terms to compare funeral plans and over 50s life cover

When you're shopping around for either funeral plans or over 50s life cover you may come across some new terms. These three commonly used terms might be helpful to familiarise yourself with.

Moratorium

For both funeral plans and over 50s life cover, there is a period before cover starts when accidental death is still covered. This is referred to as the moratorium period and is usually either one or two years.

Premiums

Premiums are the amount of money you pay each month. For over 50s life cover or if you've chosen to pay for your funeral plan monthly, the amount you pay will be set out at the beginning and won't change.

Sum assured

The sum assured is the set amount of money that will be paid when your over 50s life cover is claimed. Instead of a set payment, funeral plans guarantee a funeral regardless of any funeral cost rises in the future.

Which option is better value for money?

Whether a funeral plan or over 50s life cover is good value for money, depends on your priorities, financial circumstances, what you want to be covered and the level of cover you’d like.

A funeral plan may be suitable for you if:

  • You want flexibility in payment options. Our plans can be paid for upfront or monthly over 1, 5, or 10 years.
  • You want to protect yourself from rising funeral costs. Since 2004 funeral costs have more than doubled.+

But bear in mind that:

  • Your family won't receive any money from your plan - you are paying to receive a service instead.
  • If you miss too many monthly payments your funeral plan could be cancelled.

+ Funeral costs were £1,835 in 2004 and £4,141 in 2023 (SunLife Cost of Dying Report 2024, sunlife.co.uk/funeral-costs)

Over 50s cover may be suitable for you if:

  • You want to make lower payments. Over 50s life cover monthly payments are usually lower than funeral plan payments, but the older you are the more your payments will be.
  • You want your family to receive the money.

But bear in mind that:

  • There is no guarantee your funeral costs will be covered by the amount paid out.
  • The payout amount is fixed so could be worth less by the time it's paid due to inflation.
  • If you live a long time you could pay in more than is paid out.

How do funeral plans and over 50s life cover compare

Funeral plan Over 50s life cover
What is the cover for? Specifically for a funeral Payout can be used to cover debts, bills or to give loved ones financial stability
What happens when you die? Your funeral goes ahead as agreed A payout is made - a death certificate may be needed before the money is paid
Who receives money? Your chosen funeral provider so there is less for your family to arrange Your family so they can use the money to cover other debts or expenses
How do you pay? There are different ways to pay offering you flexibility Payments need to be made monthly for the duration of the policy otherwise the cover ends
How long do you pay for? You can choose to pay a single payment upfront or monthly over 1, 5 or 10 years Until you are 90 so you could be paying for up to 40 years
Are there age restrictions? Over 18 - depending on how you pay plans are available with no upper age limits Over 50 - upper age limits also apply and age can affect the cost of monthly payments
Are there medical checks? No – eligible regardless of health No – eligible regardless of health

Our funeral plans

We specialise in low-cost and simple cremation funerals.

Choose between our Unattended Direct Cremation Plan, Small Attended Cremation Plans or our Simple Funeral Plan which includes a full length celebrant-led service.

Alternatively you can view our price list or our CMA standardised price list.

Unattended Direct Cremation Plan

From £1,699 or £18.79* per month

Our Unattended Direct Cremation Plan is a great choice for those looking for a simple farewell which takes place with no service or mourners at our high-quality crematoria where compassionate care is guaranteed throughout.

View our Unattended Direct Cremation Plan * Price advertised is for a 50 year old paying over a 10 year period. Total cost is £2,349.80 and includes administration fees.

Small Attended Cremation Plans

From £2,099 or £24.58** per month

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 so your nearest and dearest can pay their respects at the crematorium.

View our Small Attended Cremation Plans ** Price advertised is for a 50 year old paying over a 10 year period. Total cost is £3,044.60 and includes administration fees.

Our funeral plans are designed for people who want a respectful send-off but who want to keep costs down.

Low cost funerals free up money that would otherwise have been set aside for your funeral to be spent on other priorities or to be used for a separate more personal memorial of your life instead.

How are funeral plans and over 50s life cover regulated?

Laptop For Researching Funeral Plans On Table

Funeral plan providers and providers of over 50s life cover are both regulated to help keep your money safe.

All providers operating legally must be authorised and regulated by the Financial Conduct Authority (FCA) which exists to enhance consumer protection.

Distinct Funeral Plans Limited (DFPL) is authorised and regulated by the Financial Conduct Authority (FCA) to sell and administer funeral plans. These include both modestly attended cremation services and just cremations.

As part of our regulatory responsibilities, we provide full and clear information about how we keep your money safe.

Other helpful resources

Continue your research to narrow down the ideal later-life financial planning product for you and find out other ways you can prepare yourself and your family for your death in the future.

How to choose a funeral plan

Couple reviewing funeral plan options

If you think a funeral plan is the option that sounds most suitable for you, the next step is choosing the right plan. We've put some tips together to help.

Choosing a funeral plan

The different ways to pay for a funeral plan

Woman doing paperwork

Get to know the different payment options available when you take out a funeral plan to see if paying upfront or in monthly instalments would suit you.

The different ways to pay for a plan

Setting up a funeral plan for a loved one

Sue arrange flip

If you know you’ll be the one making funeral arrangements for a loved one, getting a funeral plan for them could help ease your mind.

Setting up a plan for a loved one

We offer the highest level of support, but don't take our word for it

Below are a selection of reviews from those who have arranged a funeral or purchased a funeral plan through Distinct Cremations.

"Smooth and straightforward purchase with plenty of contact and feedback."

“Easy to use and very helpful. Very easy to use their services and always called with updates. Sorry to say I've had to use their services twice now and I've already booked my own service. On both times I've used this service I've been kept informed by calls to everything going on. All my requests were made to feel like no trouble whatsoever, happy to help attitude made what was a very emotional time pass with no problems. Ty to all the teams involved"

"Quick and easy to arrange. Very good value. The information pack arrived days after I made my enquiry. It was so easy to arrange the plan that I wanted. The follow up call was very reassuring. I am very happy with the service provided."

"Already recommended to other family members. Easy to access and apply for a plan at a good price, and even better, in 20 years time there will be no additional cost. It's not a subject that anyone wants to think about but now I have it sorted it has given me peace of mind knowing my family won't have the worry or cost when that time comes, now I can forget it and enjoy many more years, highly recommended. Hassle free application that was completed in minutes but I'm not planning on using this plan anytime soon!!"

"I was very pleased with the prompt efficient service that I got, everything was explained to me, and the paperwork was easy to understand, and there was no pressure put on me for a decision. I would most certainly recommended this company for price and efficiency."

“Happy with everything. We were well pleased with the consultant Sarah Mills she was very helpful and made us feel very confident that we were doing the right thing about our funeral plan."

"Positive without being pushy. Easy to understand the scheme, helpful brochure and a realistic price. The staff I contacted were polite and professional. Great value. An ideal alternative for those of us who don't want a lot of fuss."

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