What is a Funeral Benefit Option?

It’s not easy thinking ahead and planning your own funeral. But you may find some peace of mind if you do - and there are plenty of options out there to help your loved ones.

The Funeral Benefit Option is designed to do just that.

When you take out Over 50s Life Insurance with us, you can add the Funeral Benefit Option to your policy at no extra cost.

If you die during the policy term, the cash sum will be paid directly to Dignity - one of the UK’s leading providers of funeral related services. They’ll then help your family arrange your funeral during this difficult time and will contribute an additional £300 towards it.

Why use Dignity?

  • They have a network of over 750 funeral directors throughout the UK.
  • They’ll donate an additional £300 towards your funeral service.
  • Your family will get experienced help with the funeral arrangements.
  • Over 700,000 people used them to help plan their funeral, more than any other funeral plan provider.

How does it work?

  • No matter what the cause of death is, if you die after the first year of taking out life insurance with us, your cash sum will be paid directly to Dignity who’ll arrange your funeral.
  • If you die within a year of taking out life insurance with us, we’ll either pay the cash sum to your estate or next of kin (if your death is due to an accident) or we’ll refund any premiums paid (if your death is due to other reasons). Dignity will still contribute £300 if they arrange your funeral.
  • Your estate or next of kin will need to pay any additional funeral costs if they exceed the combined value of your policy plus Dignity’s £300 contribution. We’ll refund the difference if your funeral costs are lower.
  • If you change your mind at any point and wish to cancel the Funeral Benefit Option, it will simply be removed from your Over 50s policy. There is no cancellation charge, but you will need to notify Dignity.
  • If your next of kin chooses to cancel the Funeral Benefit Option after you’re gone, Dignity’s £300 contribution will be removed and the full cash sum from your policy will be paid out.
  • An information pack, containing full terms and conditions, will be sent in the post within 28 days of applying for the Funeral Benefit Option.

Anything else I should know?

  • Our Over 50s Life Insurance is provided by Legal & General.
  • If you stop paying your premium before your policy ends, your cover will end 30 days after you’ve missed payment and you won’t receive anything.
  • Depending on how long you live, the total amount you’ve paid over the years could end up being greater than the cash sum payable on death.
  • Although your insurance cover will continue until you die, you’ll no longer need to pay premiums if you reach 90 years old.
  • This isn’t a savings or investment product and has no cash value until a valid claim is made.
  • Inflation will reduce the buying power of your cash sum in the future.