Life Insurance/ Funeral Plan or ISA ?

Stevepg1

Hi, Now a pensioner, my wife & I both have life insurance policies coming to an end soon. They were excellent schemes with lump sum payment should either of us died. 

We now need to cover each other in order to leave ourselves able to cover Funeral expenses.

Which would be best way forward, we both have health issues. Not sure if to do a separate ISA, life ins, or funeral plan. 

Any advice ?

Farway

I'd go for separate ISA, especially given recent insolvency and other problem involving some Funeral Plans

I guess Life insurance would be high premium with your medical & ages, and the No Medical types must have limited payouts for the premiums?

At least ISA is easy to understand and transferable to another provider if first choice become unsuitable

Inflation may eat way of course, so not sure if the Funeral plans are inflation proofed or not

Baron_Dale

I have a funeral plan with the co-op which is a very safe and experienced company. I went for the most expensive type of funeral. I put £500 down and pay £63.09 a month for 5 years. I have funds to pay it in full but the arrangement suits me at the moment. Also if I die after two years of payments the plan is honoured in full for the funeral without further payments. The payments are constant so in that way inflation is not an issue.
I have also purchased my grave and sorted the type of memorial I wish to have. The executors of my will are fully briefed.
Hopefully have a good few years yet lol!

Nebulous2

One thing to be aware of is making sure the money you have for your funeral is accessible. Not so much of an issue for a couple with funds in joint names, but an ISA can only be individual. 

When my grandmother died it took some time to work through the banking system to access her money. 

Fortunately my parents were able to fund the funeral themselves, but it could have been an issue if they were unable to do that. 

Floss

Nebulous2 said:

One thing to be aware of is making sure the money you have for your funeral is accessible. Not so much of an issue for a couple with funds in joint names, but an ISA can only be individual. 

When my grandmother died it took some time to work through the banking system to access her money. 

Fortunately my parents were able to fund the funeral themselves, but it could have been an issue if they were unable to do that. 

Funeral directors are regularly required to wait for probate / release of monies for payment of funeral bills.

Stevepg1

Thanks for all your comments, some good advice. We’ve got until April on existing insurance but obviously want to protect each other going forward. Hopefully many years before we need it of course!