If you think the payout on over 50s life cover won’t be enough, but you’d still like to set some money aside for your funeral or your loved ones, here are some alternatives to consider:
Set aside savings for your funeral costs
Simply setting aside some money each month could be a good option for paying funeral costs and bills you may leave behind. This gives you greater flexibility, and you can increase or decrease payments to suit your monthly budget. A cash ISA is a tax efficient way to save, and is a good option if you don’t already use your allowance. Remember that there is a risk you may not save enough to cover your expenses. If you think a cash ISA is the best option for you, check out our guide to comparing the best cash ISAs for over 50s.
Whole of life insurance
If you are in good health, and still in your 50s, a whole life insurance policy may offer more value for you in the long run. If you are accepted for a whole life insurance policy, the payout could be as much as 40% more than aregular over 50s life plan. Make sure you research all your options thoroughly, taking into account your general wellbeing and age, and use a price comparison service or discount broker to find a life plan that works for you.
Level term life insurance
This is also an option if you are in a good state of health, and it’s worth getting some quotes for monthly premiums. As the name suggests, a level term life insurance policy will only cover you for a fixed period and it’s important to consider how long you need this to be. If you live beyond the term you’ll have no cover in place, so think carefully about how long you need cover for. This can be a good option of if you’re looking for a higher amount of cover than an over 50 life insurance plan provides, and you’re happy to undergo a medical questionnaire.
Pre-paid funeral plan
If you have a lump sum of money available now, a pre-paid funeral plan may be a better option than starting an over 50s life plan. For around £3,000 you can pay the full cost of your funeral now and have the peace of mind that your loved ones won’t have to find the money in the future. A funeral plan is inflation-proof, and the cost is covered regardless of how many years you live and what happens to inflation rates.
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