A guide to funeral cover

How can I pay for my funeral?

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 or insurance provider.

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 could 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.

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. Families can choose to use this money towards funeral fees and related costs.

Unlike pre-paid plans, there’s no protection against rising or fluctuations in fees when using 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, 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, spread the cost over 6 or 12 months, or in monthly payments over 2-25 years.