As there are numerous providers throughout the UK, taking the time to read the small print and run through what coverage entails is important. These policies, as with funeral plans are offered either directly through funeral directors or via insurance brokers and providers. There are several types of plans and policies to consider when taking out funeral insurance and these routinely include:
- Funeral Insurance for Over 50s
- Funeral Insurance for Seniors
- Funeral Insurance for Parents
- Prepaid Funeral Insurance
These plans all tend to cover the basic burial or cremation costs to cover the actual process. However, there are elements associated with the process that they may not cover, so it is important to speak to the insurer or broker to clarify these details. Furthermore, a benefit of these insurance plans is that they are able to cater for specific religious requirements and ceremonies.
We are able to compare funeral insurance and funeral plans to help you find the best policy for your specific needs and requirements. Working with some of the UK’s best providers means that with us, you have access to a wide range of options.
What Does a Funeral Insurance Policy Cover?
As with other forms of insurance, a funeral insurance policy can vary with regards to what it actually covers and pays out for. You should always check your policy to make sure you are covered for everything you need and that what is paid out will cover the burial or cremation of preference. Not every policy will cover absolutely everything for a funeral and this can be worrying for some. However, by securing the perfect funeral insurance policy, you will be safe in the knowledge that what you want and need is fully taken care of, to ensure your family do not get left with a hefty bill.
These policies tend to cover the costs of the actual burial or cremation but they often do not extend to other elements associated including:
In addition, these policies will not cover the purchase of land and burial plots so it is important that this is taken care of separately.
Funeral Insurance for Over 50s
As the name suggests, funeral insurance for over 50s covers a specific age group and demographic. One of the main reasons for people choosing these types of policies is that they do not have to commit to paying into the pot in the same way as they might with life insurance. Rather, they have many years to save up enough capital to be able to pay the premium once they reach 50. Furthermore, for those that only decide later in life to take out a funeral insurance plan, these types of policies take this into account.
However, with many people reaching ages well beyond the age of 100 years old, many people do not wish to pay into a life insurance policy for potentially 40 years or more, as depending on the precise policy, they may end up paying in more than the policy end up paying out. Therefore, by taking out an Over 50s funeral insurance policy, the applicant can be safe in the knowledge that they have ample time to pay into the policy and when the time comes, the policy will pay out a more reflective amount.
What if I Can’t Afford Funeral Insurance?
There are many people who are simply unable to afford a policy or insurance, but who do see the need to plan ahead and ensure their family do not get left with a potentially hefty bill. For those that are on very low incomes and for those that are on benefits, the Department for Work and Pensions (DWP) do offer state aided help and assistance in the form of Funeral Payment Plans.
These plans cover the necessary costs associated with death and the burial or cremation process including:
- Death documentation costs (doctor’s a death certificates)
- Funeral expenses (such as the actual burial costs)
- Travel expenses (to transport the deceased and the family)
This assistance from the DWP does however need repaying and comes in the form of a loan. Therefore, the family will likely need to repay this from the estate of the deceased.
Funeral Insurance Plans – How Do They Work?
Funeral insurance plans have various forms that they can take, all of which have their merits and should in some way be considered when seeking the necessary coverage. Taken out through a funeral director or insurance provider or broker, you should always ask the necessary questions to check that the coverage doesn’t have any pitfalls for your needs and that it will pay out what you need when you and your family need it.
As with other insurance policies, these plans can be wither be paid in full upfront or may be spread out over a longer period of time; usually 1 – 10 years, making the plan that bit more affordable. In addition to this, it is important that your chosen funeral insurance provider offers you the appropriate safeguards for your policy and your payments. Providers should either deposit the funds from your plan that you pay into a trust fund or into an insurance policy that only pays out upon death.
How Much Does Funeral Insurance Cost?
Funeral insurance policies vary in price but will usually cover total costs of more than £3,000, whether paid in a single lump sum or in monthly instalments over a longer period of time. With the average funeral in the UK costing upward of £3,500, this insurance has never been of greater importance.
Are Policies Regulated?
Funeral insurance policies are not directly regulated by the Financial Conduct Authority (FCA). However, if one invests in a funeral insurance policy, the money paid in should be deposited in a trust fund and this being the case means there are procedures in place to protect your money and policy. Funeral insurance providers must comply with the codes of conduct set out by the Funeral Planning Authority (FPA).
Additionally, under Section 75 of the Consumer Credit Act 1974, if more than £100 is paid using a credit card, there is legal protection there to ensure that the provider of the services paid for must cover you if they go bust or if there is another problem affecting the paying out of a policy. To be eligible for this protection, simply pay more than £100 of the policy on a credit card.
Compare Funeral Insurance Quotes Online
Compare funeral insurance quotes with us today and we will provide you with a range of quotes from some of the UK’s best funeral insurance providers. Our process is easy, quick and straightforward and we cover all types of funerals, burials and cremations. Apply today and we will get you on track to peace of mind for the future.