PROTECTION GUIDES
Life insurance to help with funeral costs
Leave your family money to pay for your funeral, so they can focus on saying goodbye rather than on the bill.
The short answer
A small life insurance policy can pay your family or estate a lump sum to put towards your funeral. The main options are a term or whole-of-life policy, which asks about your health, or an over-50s plan, which typically offers guaranteed acceptance but a fixed, smaller payout.
A prepaid funeral plan is different: it pays a funeral director for set services rather than paying money to your family.
Why plan for funeral costs
A funeral usually needs paying for soon after a death, often before the estate has been sorted out. Without money set aside, relatives may have to pay from their own savings or wait to be repaid from the estate.
Life cover arranged for this purpose pays a lump sum to your family or estate, subject to the policy terms. They can use it for the funeral, a headstone, a wake, or other final expenses.
Your options
A small term or whole-of-life policy
Standard life insurance can be taken out for a modest amount. A term policy pays if you die within a set period, while whole-of-life cover is designed to pay out whenever you die, as long as premiums are paid. Both usually ask health questions, and if you are in reasonable health they may offer more cover for your premium than an over-50s plan. Read more about personal life cover, or compare term and whole of life insurance.
Over-50s plans
Over-50s plans are a type of whole-of-life cover aimed at older people. Terms vary by insurer, but many plans have:
- •Guaranteed acceptance: no medical questions, if you are within the eligible age range.
- •A waiting period: often one or two years, during which death from non-accidental causes usually only returns the premiums paid.
- •Fixed premiums and a fixed payout: the premium stays the same, and may continue for many years, while the payout does not rise.
Worth knowing
Life cover or a prepaid funeral plan?
A prepaid funeral plan is paid to a funeral director, either upfront or in instalments, for a specified set of services. It covers what is in the plan, rather than giving your family money. Items outside the plan may still need paying for.
Life insurance pays money to your family or your estate. It is not tied to one funeral director, and anything left over after the funeral can be used for other costs. The right choice depends on whether you want to arrange the funeral itself or leave money for your family to decide.
Who it suits, and when it may not be needed
Who it can suit
- •People who want to leave money so their family is not out of pocket
- •Older people who have no other life cover in place
- •People whose health makes standard cover difficult, who may consider an over-50s plan
When it may not be needed
- •Savings set aside would comfortably pay for your funeral
- •An existing life policy you expect to keep in force would already cover it
- •You have already paid for a funeral plan that covers what you want
Choosing an amount you can afford
- •Ask local funeral directors for prices for the kind of funeral you would want, rather than relying on general estimates
- •Consider how long you might be paying premiums, and the total that could add up to
- •Compare an over-50s plan with medically underwritten cover if your health allows
- •Check whether premiums stop at a certain age or continue for life
Your age, health and smoking status affect the price of underwritten cover. If you have a medical condition, our guide to life insurance with pre-existing conditions explains how insurers assess it. We compare benefits and terms, not just the monthly premium.
Next steps
Decide whether you want to leave money or to arrange the funeral itself. If you want to leave money, we can compare an over-50s plan with underwritten life cover for your age and health, so you can see what each would pay and cost over time.
Talk to us about covering your funeral costs
Tell us what you would like the cover to pay for and what you can comfortably afford. We will explain the options suitable for your age and health, including where an over-50s plan may or may not be good value. There is no fee for our advice.
How CoverLife can help
CoverLife Insurance gives personalised protection advice, with a dedicated adviser for your application and ongoing support. We have access to a panel of 15 protection insurers, with availability varying by product and circumstances, and we compare benefits and terms alongside price. We also help with policy reviews and with applications involving medical conditions, unusual occupations or hazardous hobbies.
We charge no advice or arrangement fee; we receive commission from the insurer. CoverLife Insurance is a trading name of CoverTrade Risk Management Ltd, authorised and regulated by the Financial Conduct Authority, firm reference number 1020148. More about CoverLife
Related guides
The questions people usually ask next.
- Personal life coverHow term and whole-of-life policies work if you want more than funeral cover.
- Life insurance with pre-existing conditionsA medically underwritten policy may still be possible with a health condition.
- Life insurance to protect your partnerIf your partner would need more than funeral costs, look at wider cover.
- Review your existing protectionCheck whether a policy you already have would cover funeral costs.
Common questions
What is the difference between a funeral plan and life insurance?+
A prepaid funeral plan pays a funeral director in advance for a specified set of services, so the plan covers the funeral itself rather than paying out cash. Life insurance, including an over-50s plan, pays a sum of money to your family or estate, which they can use for the funeral or anything else.
What happens if I die during an over-50s plan's waiting period?+
Many over-50s plans have an initial waiting period, often one or two years. If you die from a non-accidental cause during that time, the plan usually returns the premiums you have paid rather than the full amount of cover. Accidental death is often covered in full from the start. The exact terms vary by plan.
Could I pay more into an over-50s plan than it pays out?+
Yes. The payout is usually fixed, while premiums may continue for many years, sometimes until a set age or for life, depending on the plan. If you live a long time, the total you pay can exceed the amount your family receives. It is worth checking this before you buy.
Do I have to answer medical questions for funeral cover?+
Over-50s plans typically offer guaranteed acceptance within the eligible age range, with no medical questions. Standard term or whole-of-life policies ask about your health, and in return may offer more cover for your money if you are in reasonable health.
What happens if I stop paying the premiums?+
With most over-50s plans and term policies, the cover ends if you stop paying and you get nothing back. Some plans stop taking premiums after a set age and keep the cover in place, but terms vary, so check the policy details.