Over 50 life cover V prepaid funeral

loneranger · 21 January 2019 at 10:00AM

I am on a limited income and just took out an over 50 life cover with royal London,still have cancellation option.Then I read some trust pilot revues and :eek:.Would my money be better used on a prepaid funeral plan because I do not want my kids landed with problems paying for my funeral (which I hope will not be any time soon).

dunstonh · 21 January 2019 at 1:10PM

Over 50s plans are an option of last resort. Typically used by people that are in poor health and cannot get conventional life assurance. Or quite often bought by people falling for marketing who really shouldnt be buying them.

Pre-paid is likely to be better but that is a major area of concern as well as some funeral directors have taken so much in pre-pay that they will have big bills in later years with no income from those at that time. So, you need to be wary who you buy with and what the terms are.

Weighty1 · 21 January 2019 at 1:12PM

There is no short answer to your question.

It depends on the type of pre-paid funeral plan you were taking and the period over which you planned to pay this, or whether it was an insurance based pre-paid funeral plan. The benefit of over 50's life cover is that your beneficiaries can use the money for whatever purpose they wish, especially if there is excess left over and above the funeral costs. With a funeral plan it will only ever cover the funeral costs, nothing more, nothing less. That said, the over 50's plan may not even cover the full cost of the funeral if you died a long time from now and inflation had eroded the payout.

sheramber · 21 January 2019 at 2:33PM

Beware of paying in more to the over 50's plan than will ever be paid out.

If you stop paying you get nothing back and lose all you have paid in.

Over 50 life cover V prepaid funeral

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