Updated: November 12, 2019

Should I Take Out Funeral Life Insurance?

Can you use life insurance to help cover the cost of your funeral? Read our article to find out what your funeral cover options are

Get Started
Ask A Quick Question

Ask A Quick Question

We can help! We know everyone's circumstances are different, that's why we work with brokers who are experts in life insurance. Ask us a question and we'll get the best expert to help.

FCA Logo
1 of 2
2 of 2 Send!

No impact on your credit score

Pete Mugleston

Author: Pete Mugleston - Mortgage Expert

Updated: November 12, 2019

Thinking about your death may not be the easiest topic to confront but, from a financial planning perspective, it’s important to many people to make arrangements for their funeral because they don’t want family and loved ones to be burdened by the cost.

Think Tank International Longevity Centre estimates suggest the total cost of a funeral in 2020 could exceed over £7,000.

You can ensure you have the funds to pay for your funeral by contributing to a funeral plan or by making it part of your life insurance package, otherwise, these fees may be passed on to your family or dependents.

We explain more about what funeral cover is and how you can use life insurance to help cover funeral costs.

The following topics are covered below…

What is a life insurance funeral plan?

Typically, Life insurance policies don’t include paying for your funeral, which is why some people opt for a life insurance funeral plan where you take out life insurance and add on separate ‘funeral cover’. This way you know that your funeral is paid for before you die.

If you’re keen to pay for your funeral before you pass away then there are three main ways you can do this is:

  • By having life insurance with a funeral cover add-on.
  • Buying specific funeral insurance.
  • Taking out a funeral plan.

It’s worth noting that providers will assess your application based on your age and medical history. This will influence the type of cover they offer, and the price it will cost you.

Speak to a expert today

Get Started

Can I take out life insurance which includes funeral cover?

Yes, as explained above, you can take out life insurance with funeral cover.

To compare the costs of life insurance with or without additional funeral cover, get in touch and we’ll introduce you to one of the independent financial advisors we work with.

Being independent means they have access to all the insurance providers in the UK and will use their knowledge, experience and tools to ensure you get the right cover for the most competitive price.

What’s the difference between life insurance and a funeral plan?

Basic life insurance is a lump sum that’s paid to your estate when you die, while a funeral plan will specifically pay for your funeral fees, as explained below.

Life insurance

With life insurance, your nominated dependents will receive a lump sum and how they choose to spend it is up to them.

This means it can help with expenses such as a mortgage, school fees etc. They could use the money to pay for your funeral but it may not be the most reliable method.

It may take many weeks after death for the life insurance payout to be made, and if there are any investigations or complications relating to the death there could be setbacks, which could end up delaying your funeral too.

Funeral plan

With a funeral plan, you pay for your funeral before you die and the lump sum paid out to your family must be spent on your funeral.

Usually, you can expect:

  • To pay for a particular amount of cover. Typically, this will cover the fees for the funeral director to conduct the funeral.
    You may be able to ‘lock’ the prices to what they cost at the time of your policy so that if they’ve increased when you die, your family won’t have to pay the higher rates.
  • Some policies cover all the costs and some only contribute towards costs so be sure to check the terms before you sign on the dotted line. There may also be limitations on what your provider will pay for, for example, they may cover a cremation but not a full church service.

If you’re not sure whether to take out life insurance or a funeral plan, consider all the pros, cons and benefits; they may vary greatly between providers.

For example, some won’t payout if you’ve contributed payments for less than 12 months. There may also be premiums attached so you may need to pay in for a minimum of two years in order to get the full funeral fees and if it’s less, your provider may only pay out a percentage.

To get a clear idea of the kind of policy which might suit your needs and avoid paying more than you need to for the cover you want, make a quick online enquiry to talk to one of the specialist advisors we work with.

They will be happy to answer all your questions and give you a clear idea of how much the cover you want might cost.

With access to insurance providers across the UK, they are well-positioned to get you the best possible cover at the best available price.

Does life insurance cover funeral or burial costs?

If you have a life insurance policy when you die your dependents will receive a lump sum payment. They can choose to pay for your funeral with it but it’s not automatically set up to pay for your funeral unless, in addition to your life insurance, you have also taken out additional ‘funeral cover’.

Check the details of the cover as your provider may pay for some aspects of your funeral and not others.

How to pay for a funeral with no life insurance

If you haven’t made provisions for your funeral to be paid for then it will probably be up to your family to find a way to cover the costs.

They may be able to meet the costs by using funds from your estate if there’s enough, although often probate means the money may not be free to use at the time of your funeral.

If you don’t have family, or enough money in your estate to pay for your funeral, typically the local authority can arrange a Public Health Funeral. These are usually cremations and fairly basic.

If you’re on a low income and are in receipt of benefits, you can also apply to receive Funeral Payment whereby you’ll receive funds towards your funeral.

This can cover costs such as paying for the death certificate, burial fees and up to £700 for extras like your coffin or flowers.

Some employers also have a ‘death in service’ policy which means that if you die while you’re employed by them, your beneficiaries you may receive a payment they could use towards your funeral.

Speak to an expert

If you still have questions about life insurance funeral cover, the next step should be to speak with an independent financial advisor, like the ones we work with.

Give us a call on 0808 189 0463 or make an enquiry for a free, no obligation chat and we’ll introduce you to an advisor with specialist knowledge of life insurance and funeral plans. Remember they are all regulated by The Financial Conduct Authority and so abide by strict rules and standards.

They will be happy to answer all your questions and can talk you through the various different plans available from different providers across the UK.

They will use their tools and knowledge to ensure you get the right cover for the most competitive price.

Ask A Quick Question

We can help! We know everyone's circumstances are different, that's why we work with brokers who are experts in life insurance. Ask us a question and we'll get the best expert to help.

FCA Logo
1 of 2
2 of 2 Send!
Pete Mugleston

Pete Mugleston

Mortgage Expert

About the author

Pete, an expert in all things mortgages, cut his teeth right in the middle of the credit crunch. With plenty of people needing help and few mortgage providers lending, Pete found great success in going the extra mile to find mortgages for people whom many others considered lost causes. The experience he gained, coupled with his love of helping people reach their goals, led him to establish Online Mortgage Advisor, with one clear vision – to help as many customers as possible get the right advice, regardless of need or background.

Pete’s presence in the industry as the ‘go-to’ for specialist finance continues to grow, and he is regularly cited in and writes for both local and national press, as well as trade publications, with a regular column in Mortgage Introducer and being the exclusive mortgage expert for LOVEMoney. Pete also writes for OMA of course!

Continue Reading

Chevron Right Life Insurance

Chevron Right A Quick Guide to Guaranteed Life Insurance

Chevron Right Best Life Insurance

Chevron Right Can I Combine Life Insurance and Income Protection Insurance?

Chevron Right Changing Life Insurance

Chevron Right Converting Term to Whole Life Insurance

Chevron Right Declined Life Insurance

Chevron Right Divorce and Life Insurance Policies

Chevron Right Do I Need Life Insurance Plans for my Children?

Chevron Right Family Life Insurance

Chevron Right Endowment Life Insurance

Chevron Right Getting Life Insurance for Someone Else

Chevron Right Guide to the UK’s Top Life Insurance Companies

Chevron Right How Do You Compare Life Insurance?

Chevron Right How Many Life Insurance Policies Can I Have?

Chevron Right How Much is Life Insurance in the UK?

Chevron Right How Much Life Insurance Do I Need?

Chevron Right How to Cancel Your Life Insurance Policy

Chevron Right International Life Insurance for Expats

Chevron Right Is Life Insurance Worth It?

Chevron Right Joint UK Life Insurance Policies

Chevron Right Life and Accident Insurance

Chevron Right Life and Health Insurance

Chevron Right Life Insurance – What Happens If My Circumstances Change?

Chevron Right Life Insurance and Inheritance Tax – A Quick Guide

Chevron Right Life Insurance Beneficiary Rules

Chevron Right Life Insurance for People Over 50

Chevron Right Life Insurance for People Over 60

Chevron Right Life Insurance for Over 65s

Chevron Right Life Insurance for People Aged 70 and Over

Chevron Right Life Insurance for the Self-Employed

Chevron Right Life Insurance for Women

Chevron Right Life Insurance for Young Adults

Chevron Right Life Insurance Savings Plan

Chevron Right Life Insurance Tax Guide

Chevron Right Life Insurance When Pregnant

Chevron Right Life Insurance with Cash Back

Chevron Right Life Insurance With No Medical

Chevron Right Mortgage Life Insurance

Chevron Right Pension Life Insurance

Chevron Right Putting Life Insurance into Trust

Chevron Right Quick Life Insurance

Chevron Right Senior Life Insurance

Chevron Right Short-Term Life Insurance

Chevron Right Should I Take Out Funeral Life Insurance?

Chevron Right Should You Use a Life Insurance Broker?

Chevron Right Types of Life Insurance

Chevron Right Understanding Life Insurance Quotes

Chevron Right What Does Life Insurance Cover?

Chevron Right What’s the Difference Between Life Insurance and Life Assurance?

FCA Disclaimer

*Based on our research, the content contained in this article is accurate as of the most recent time of writing. Lender criteria and policies change regularly so speak to one of the advisors we work with to confirm the most accurate up to date information. The information on the site is not tailored advice to each individual reader, and as such does not constitute financial advice. All advisors working with us are fully qualified to provide mortgage advice and work only for firms that are authorised and regulated by the Financial Conduct Authority. They will offer any advice specific to you and your needs.

Some types of buy to let mortgages are not regulated by the FCA. Think carefully before securing other debts against your home. As a mortgage is secured against your home, it may be repossessed if you do not keep up with repayments on your mortgage. Equity released from your home will also be secured against it.

Get Started