Turn on your television during the daytime and you won’t have to wait long until a commercial comes up for life insurance or pensioners funeral insurance. Each company claims to offer better than the next and unlike in the past, you can take out insurance if you are 80, or sometimes even older. So, when is it too late to take out a funeral plan or pensioners funeral insurance and what should you expect from your policy?
One option open to you is to take out a life insurance policy. These are widely available today and often without the need for a medical check. As long as you have not yet reached 80, many companies in the UK will be willing to take you on as a customer. What you need to remember here is that there are two different types of payout. One is a standard sum that is decided when you sign your agreement.
The other is the amount you paid in. In the past, many people lost out when taking out such policies, as they would pay in more than the final payout. To avoid this situation, make sure the policy you choose will not be limited to an amount that is lower than what you expect to pay in. The older you are, the fewer years you will pay into a policy, so the less likely it is that this problem will occur.
The other option for pensioners is to take out a funeral plan or pre pay for a funeral. This is a preferred option for many as you will know exactly how much you are paying in. You can choose to pay for your funeral plan in installments, or in one lump sum. The amount you pay into your plan will cover your funeral costs. The type of funeral you can have will depend on the amount you will pay into the plan. There will always be some extra costs that are not included in your plan however.
Funeral plans for pensioners can be taken out at any age. This is one advantage over taking out a life term insurance policy. It doesn’t matter if you live to 80 or to 99, your family will be covered and they will receive the amount that is stated in your funeral plans. Funeral plans are not subject to inheritance tax in the UK. This is yet another reason why people are taking out funeral plans as opposed to insurance policies.
Whichever method you choose to ensure your loved ones are not left with your funeral expenses on your passing, it is never too late. Although taking out insurance earlier in life is recommended, a funeral plan taken out when you are already retired can cover your funeral expenses. Talk to your local funeral planners today to decide what cover you want to take out and to start preplanning your funeral.