Over 50s funeral life insurance: how it works

Funeral life insurance is a life insurance policy that pays a fixed cash lump sum when you pass away. MoneyHelper says the lump sum should cover the cost of a funeral, and that it's sometimes called an 'over 50s plan'.

In the UK it's often not a product of its own: it's typically an over 50s whole of life policy. Post Office, for example, doesn't sell a separate funeral policy, but its over 50s life insurance is often used for funeral costs.

The Association of British Insurers calls them guaranteed whole of life plans, usually for ages 50–85, that pay a lump sum when you die. The money is paid as cash, so your family can use any funeral director or spend it however they wish.

You pay a fixed monthly premium, and when you pass away the plan pays a cash lump sum to your beneficiaries. This payout is called the sum assured.

1. You apply without health questions Over 50s plans are usually for ages 50–85, with guaranteed acceptance if you meet the insurer's age and UK residence rules. You don't answer health questions or have a medical check.
2. You choose the cover At Post Office, for example, the premium depends on the cash sum you choose, your age and whether you smoke. A joint plan or increasing cover changes it too.
3. The monthly premium stays fixed Your premium is usually fixed from the start, unless you choose increasing cover. You stop paying at 90 with Legal & General (95 with Post Office), and your cover carries on for life.
4. Full cover starts after a waiting period Full cover typically starts only after a waiting period at the start (also called a 'moratorium'). See waiting periods for what each insurer pays before then.
5. Your family claims the payout When you pass away, the lump sum goes to your beneficiaries. They can put it towards the funeral or spend it however they wish.

Who can apply and how much cover can you get?

Over 50s plans are usually described as covering ages 50 to 85, but Aviva, Legal & General and Post Office accept UK residents aged 50 to 80. Legal & General also requires you to have spent at least 183 days in the UK in the last tax year.

• Over 50 life insurance: how over 50s cover works and who it suits
• Guaranteed life insurance: guaranteed cover for ages 50–85 with no health questions
• Whole life insurance: cover for the rest of your life
• Over 60s life insurance: what changes when you apply in your 60s
• Life insurance over 70: what changes when you apply in your 70s

Your premium depends on your age when you apply, whether you smoke and how much cover you choose. It's usually fixed from the start, so the age you apply at makes a big difference, as Post Office's examples show.

Post Office's premiums start from £5 a month, based on a 50-year-old taking out £1,000 of cover.

Is funeral life insurance worth it?

You might pay in more over time than your family gets back. The cash sum stays the same, but you keep paying every month for years, so the longer you live, the more you pay for it.

MoneyHelper says these plans usually aren't seen as good value if you buy in your 50s and live to 80 or more. Starting later costs more each month, though. In Post Office's examples above, £5,000 of cover is £18.99 a month at 50 and £76.63 at 80 (more on applying in your 70s).

Once full cover starts, if you pass away before your payments add up to the cash sum, your family gets back more than you paid in. MoneyHelper says a plan might suit you if you're in poor health and don't expect to live long, as there's no medical check.

Full cover starts after 12 months at Aviva, Legal & General and Post Office. If you die from anything other than an accident before then, the insurer pays back your premiums (1.5 times them at Post Office) instead of the full cash sum.

At all three insurers, your cover carries on for the rest of your life once the premiums stop.

Accidental death is covered from day one. In the waiting period, Aviva and Legal & General pay the full sum for one, and Post Office pays twice the benefit amount. At Legal & General and Post Office, the death must happen within 90 days of the accident.

What happens if you stop paying?

Most of these plans have no cash-in value. If you cancel after the cooling-off period (the short time to cancel after you buy) or stop paying, your cover usually ends and you get nothing back. Aviva cancels the policy 60 days after the last premium was due.

Post Office is a partial exception. Under its Protected Benefit, if you stop paying once you're at least halfway through your payments, it still pays at least half the benefit when you die.

The average UK funeral costs around £4,510 before optional extras such as flowers and catering. Costs vary a lot with the type of funeral, and surveys give different averages.

The British Seniors figures come from a December 2024 survey of 1,500 UK adults who had arranged a funeral in the past five years. Post Office also quotes these figures.

No. Funeral life insurance pays cash to your family, while a prepaid funeral plan pays a funeral director. Post Office says mixing the two up is the most common point of confusion.

A prepaid funeral plan lets you pay in advance for some of your funeral at today's prices, using that funeral director or one from an approved list. With funeral life insurance, your family gets a cash sum and can use any funeral director.

Can funeral life insurance pay a funeral director directly?

Some over 50s plans can. With Post Office's Funeral Benefit Option, which costs nothing extra, the payout can go straight to Co-op Funeralcare to help pay for the funeral.

It saves £50 on a Direct Cremation, £100 on an Essential funeral or £250 on a Tailored funeral. You only get the discount if Co-op Funeralcare carries out the funeral, though you can remove the option before Co-op is instructed.

• Life insurance vs a funeral plan: a fuller comparison of the two

Usually a relative or friend pays, and they can claim the cost back from the estate (the money and property left) if there's enough in it. If you're arranging the funeral and get certain benefits, a Funeral Expenses Payment can help.

In Scotland, Funeral Support Payment has replaced it, and Northern Ireland has a different way to claim. To get a Funeral Expenses Payment, you need to meet three conditions:

• You or your partner get Universal Credit, income-related Employment and Support Allowance, Pension Credit or Housing Benefit, or a Support for Mortgage Interest loan. You can still claim while waiting to hear about an application for one of these.
• You meet the rules on your relationship with the person who died. You might not qualify if a close relative of theirs, such as a sibling or parent, is in work or not getting a qualifying benefit.
• You're arranging a funeral in the UK, the European Economic Area (EEA) or Switzerland.

It can help with some of the costs of burial fees for a particular plot, cremation fees (including the doctor's certificate), and death certificates or other documents. It can also help with travel to arrange or go to the funeral, and with moving the body more than 50 miles within the UK.

1. Get an invoice or signed contract You can claim before the funeral if you have an invoice or signed contract from the funeral director (not an estimate). If the bill isn't paid yet, the money goes straight to the funeral organiser, such as the funeral director.
2. Claim by phone or post Call the Bereavement Service helpline on 0800 151 2012, or fill in claim form SF200 and post it. Full details are on GOV.UK under Get help with funeral costs.
3. Apply within 6 months You must apply within 6 months of the funeral, even if you're still waiting for a decision on a qualifying benefit. If you get Universal Credit, you won't get a decision until after your next payment.

In Scotland, Funeral Support Payment usually won't cover the full cost, but it should help with some of it. You can apply after the person has died, up to 6 months after the funeral: see Funeral Support Payment on mygov.scot.

Public health funerals and employer death benefits

In England or Wales, the council or hospital can arrange a Public Health Funeral if the estate can't pay and no family or friends are available. In Scotland, the council must by law arrange the burial or cremation if no arrangements are being made, and can recover its costs from the estate.

Some employers also pay a fixed lump sum if an employee dies, which could help pay for a funeral: see death in service benefit.

Before you take out funeral life insurance, check what your family would get and when.

• MoneyHelper suggests checking how long the waiting period is before a plan pays out, and whether it covers death caused by drug or alcohol abuse.
• Work out how many years of premiums would add up to the cash sum. You might pay in more over time than your family gets back.
• Check whether the payout rises with inflation, as it's usually fixed. Post Office's Increasing Benefit Option, for example, raises the benefit by 3% of the starting amount each year, and the premium by 4.5% of the starting premium.
• Make sure you can keep up the payments. With most over 50s plans, if you cancel or stop paying before premiums finish, you lose all the money you've paid in.
• If you add a funeral benefit option, check whether it ties you to one provider. At Post Office the discount only applies if Co-op Funeralcare carries out the funeral, but you can remove the option until Co-op is instructed.
• Think about writing the policy in trust. MoneyHelper says a policy under a trust deed isn't part of your estate, and it can be paid outside probate (the legal process of sorting out an estate) and Inheritance Tax: see life insurance in trust.
• Check the cooling-off period in your policy documents. MoneyHelper's over 50s guide gives 14 days, while Citizens Advice says it's 30 days for life insurance.

If you'd like to compare guaranteed over 50s quotes for ages 50–85, you can use the form below.