Compare a funeral plan to an over 50s policy

Some people choose to take out over 50s life cover, to cover the cost of their funeral. However, you may pay far more in monthly premiums over your lifetime (up to the age of 90 in most cases) than the lump sum paid out on your death by an over 50s policy.

A guide to funeral cover

How can I pay for my funeral?

When it comes to paying for your funeral, there are several options that you and your family can choose from. Common options include funeral cover in the form of pre-paid plans or insurance. There are benefits to both, so it’s best to discuss your options with your funeral director. Our experienced team can advise and support you to choose the right option for you.

If you've written a will and appointed an executor, they may be able to access your savings or estate to fund funeral costs after you die. Regardless of what funeral cover or method of funding you choose, being prepared can dramatically reduce the stress and financial burden on your family in the future.

What is a funeral plan?

A funeral plan allows you to pre-pay your funeral costs and plan details in advance. You can decide from a range of pre-paid plans for both burial and cremation, with easy and flexible ways to pay. Many people choose this option to avoid leaving their families with sudden, significant costs. Funeral plans also protect you against rising funeral costs and help you save money in the long term.

Unlike funeral insurance, funeral plans allow arrangements to begin immediately. There’s no lengthy claims process like with some insurance policies, meaning your family won’t have to wait for a policy to pay out before they can arrange the funeral.

What is an over 50s policy or funeral insurance?

Some people choose to take out over 50s life cover, to cover the cost of their funeral. Over 50s cover provides a fixed amount lump sum on your death. However, the lump sum that is paid out may not cover the full cost of the funeral when the time comes.

Funeral insurance, including over-50s cover, is a type of funeral cover that ensures a lump sum (fixed amount) is paid to your family when you die. While this sum is often put toward the cost of the funeral, it is at the discretion of the family how to allocate it.

If you’d like to ensure your family receives a fixed sum when you die, then funeral insurance or funeral cover may be right for you. However, for a larger payout, you will have to pay a higher premium, and you can’t guarantee to be protected against the rising costs of funerals.

As with any insurance policy, to access the funds for your funeral costs, your family will need to start a claim with the insurance provider. Depending on their circumstances, they may have to wait until the funds are released to begin funeral arrangements. If they do start making arrangements, it’s likely your family will have to pay third party costs to the funeral director straight away, meaning they will have to cover this cost themselves until the policy pays out.

Does life insurance cover funeral costs?

Certain types of funeral cover, such as funeral insurance or over-50s life insurance, will ensure a fixed sum is released to your family when you die. In most circumstances, families will use this money toward funeral fees and related costs, however there is no guarantee how the money will be allocated or spent once it is released.

Unlike pre-paid plans, there’s no protection against rising or fluctuations in fees when using funeral or life insurance. Depending on how long you live, or the type of cover you invested in, you may also end up paying in more than your family get back. If you miss a number of monthly payments, your over 50s cover could stop and you (or your family) may not get anything back.

Starting a savings account to cover the cost of a funeral

Some people choose to put money into a savings account to cover their funeral costs. However this too could end up costing more money in the long run. A savings account doesn't protect against a funeral cost inflation, or guarantee to pay for all the items you want including in your funeral. A savings account doesn't help the person arranging the funeral with deciding what kind of funeral you want either.

Why choose a Co-op funeral plan?

A Co-op funeral plan helps protect your loved ones from unexpected funeral costs and uncertainty about your funeral wishes. We have a range of award-winning funeral plans with different levels of cover, so you can choose which would suit you and your family best. You can pay for a Co-op funeral plan in full or spread the cost over monthly payments of 6 or 12 months, or over 2-25 years.

If you choose to pay monthly over 2-25 years, your plan will be covered by the Co-op Commitment. This means that if you’ve made up to date payments for at least 12 months, and you die before you’ve paid your plan in full, we promise to deliver all the services included in your funeral plan.

Funeral Plan
Over 50s Cover
Does it guarantee to pay for all the items you want including in your funeral?
It will cover all the services listed in your plan as well as defined third party fees, dependent on if you choose a guaranteed or capped plan
Not included
Will there be support for me and my family from when I buy my plan to the delivery of my funeral?
Included
Not included
If I cancel after the 30-day cooling off period, will I get my money back?
Less a cancelation charge. See T&Cs.
Dependent on the insurance provider.^
Can I pay monthly?
Included
Included
Could I be paying in more than what my family will receive back when I die?
N/A - The cost of your chosen plan is fixed at the agreed price when you take out your plan
The total paid in premiums could be more than the cash payout depending on how long you have been paying the insurance.
Find the right funeral plan for you

Simple

£3,095

Our lowest cost plan that includes all the essentials for a funeral arrangement.

Pay in full or from £18.96* a month

Co-op members save £75

  • Includes a contribution of £950 to help cover defined third party costs
  • Available for burial and cremation

Bronze

£3,595

Our plan that covers cremation fees, no matter how much prices rise.

Pay in full or from £22.17* per month

Co-op members save £125

  • Includes a contribution of £1,100 to help cover defined third party costs (cremation fees are guaranteed)
  • Available for burial and cremation

Silver

£3,995

Our most popular plan that gives your loved ones flexibility with the funeral arrangements.

Pay in full or from £24.65* per month

Co-op members save £125

  • Fully guaranteed to cover defined third party costs
  • Available for burial and cremation

Gold

£4,295

Our premium plan with 5-star ratings from Fairer Finance and Defaqto 4 years running.

Pay in full or from £26.55* per month

Co-op members save £125

  • Fully guaranteed to cover defined third party costs
  • Available for burial and cremation

*Our burial plans do not include the cost of the grave or lair, as in some parts of the country this can be as much as £5,000.

^Some providers offer a level of protected pay-out, where if customers have paid premiums for a minimum period then a % of the premiums will be paid out on death.