Is a funeral plan or over-50s life insurance better?
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In short: Funeral plans prepay or pre-arrange funeral director services at today's prices — protecting against rising funeral costs. Over-50s life insurance pays a cash sum beneficiaries can use for anything, not only funerals, but does not guarantee funeral costs unless the payout suffices when you die.
Content updated:
Funeral plans are regulated by the Financial Conduct Authority since July 2022 — providers must ring-fence customer money or use insurance backing. Check FCA registration before buying.
Plan types include funeral director services only, third-party cremation plans and contribution plans. Read what happens if the funeral director fails or you move abroad.
Over-50s cash gives flexibility — beneficiaries might prioritise debts over funeral if money is tight — but requires discipline to reserve funds for intended purpose.
Some people hold both: plan for core funeral director fees, over-50s policy for headstone, reception and legacy. See over-50s life insurance explained.
Primary source: fca.org.uk/consumers/funeral-plans-check-provider-authorised
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