Is a funeral plan or over-50s life insurance better?
Where a link is marked *, it is a partner link — we receive commission at no extra cost to you. Links without a * earn us nothing. How we make money.
In short: Funeral plans prepay or pre-arrange funeral director services at today's prices — protecting against rising funeral costs. Over-50s life insurance pays a cash sum beneficiaries can use for anything, not only funerals, but does not guarantee funeral costs unless the payout suffices when you die.
Last reviewed:
Reviewed by Kaiser Khan
Funeral plans are regulated by the Financial Conduct Authority since July 2022 — providers must ring-fence customer money or use insurance backing. Check FCA registration before buying.
Plan types include funeral director services only, third-party cremation plans and contribution plans. Read what happens if the funeral director fails or you move abroad.
Over-50s cash gives flexibility — beneficiaries might prioritise debts over funeral if money is tight — but requires discipline to reserve funds for intended purpose.
Some people hold both: plan for core funeral director fees, over-50s policy for headstone, reception and legacy. See over-50s life insurance explained.
Primary source: fca.org.uk/consumers/funeral-plan/pre-paid-funeral-plans
Part of our Family & care
This quick answer sits inside our wider family & care hub — with sub-guides, calculators and step-by-step explainers on the same topic.
Read the full family & care guide →