Funeral costs in the UK have been steadily rising for years, making even a basic send off unaffordable for many. In fact, it now could cost families up to £5,000 to say farewell to a loved one depending on the choices you make.
It’s no wonder many families are turning to over 50s life insurance as a way of helping with funeral costs. Taking out a life insurance policy can help you to protect your loved ones from the financial strain caused by funeral costs. But with so many options, how do you know what’s right for you?
Understanding over 50s life insurance
Over 50s life insurance is a type of guaranteed acceptance policy meaning any UK resident aged 50 to 80 can get it. This particular type of insurance lasts for your whole life and pays a lump sum when you die. This money can be used to help with end of life expenses, funeral costs or it can be left as a cash gift to your loved ones.
If you want to learn more, our guide to over 50 life Insurance goes through things you should know about an over 50 policy.
What’s the difference between Over 50s and other types of life insurance?
It’s simple really, over 50s life insurance is tailored to the needs of those aged 50 to 80. Once you reach your 50s, you may find it difficult to secure life insurance at a reasonable price. This is because health is often a key factor when insurers are determining how much you pay in monthly premiums. Unfortunately, when we’re older, we’re sometimes more susceptible to health conditions associated with old age, which is why life insurance can be expensive. You might also find that many policies are term policies, meaning the cover only lasts for a pre-decided set term, not your entire life.
With over 50s life insurance, after the age of 90 or 95 (depending on the insurer), you will no longer have to pay any premiums and you will remain fully covered. The policy details will include information on this.
How can over 50s life insurance help cover funeral costs?
If you choose to take out an over 50s policy, you’ll choose a benefit amount and a rate of monthly premiums. As long as you keep up with your monthly premiums, your policy will pay out the full benefit amount when you pass away.
Are there any alternatives to over 50s life insurance?
If you’re too young for over 50s insurance or you feel you need something a little bit different, you can always look into taking out a standard term life insurance policy. Unlike over 50s, this type of insurance will cover you for a set period of time such as a 20 or 30 year period for example. You pay premiums for the duration of the policy, and once the term is up your cover expires and you are no longer insured. The proceeds from this type of cover could still be used to help with funeral costs if you wish.
Finding the right over 50s policy
To get started with finding the right policy for you, you can start comparing life insurance offers from leading UK insurers with Choozi. We’re here to help you find a policy that works for you and the ones you care about most.