With the cost of funerals rising disproportionately to inflation, without insurance in place, this expense can have a negative impact on those left behind.
Life insurance
One option to assist with the cost of funeral arrangements is term life insurance or whole of life cover, which guarantees a lump sum payment upon the death of the policyholder. The advantage of this type of policy is that the payout can be used not just to cover the cost of a funeral, but also to meet mortgage repayments or cover the cost of a child’s education. It is also possible to ring fence a proportion of the payout to pay for the funeral.
Over 50s insurance
An over 50s insurance plan is a policy designed specifically for people between the ages of 50 and 80 which guarantees to pay your loved ones a cash sum upon your death. One reason over 50s plans are so popular is that no medical examination is required and acceptance is guaranteed.
The payout received from over 50s insurance, which can amount to €25,000, is commonly used to help pay the bills and expenses which arise on death, such as medical bills or funeral expenses. It can also be used to pay any outstanding bills you leave behind.
The reason so many people are making financial provisions for the cost of their funerals is to avoid the negative financial impact their death has on their loved ones in these austere times. It has recently been reported that a rising number of grieving families are having to leave their loved ones in hospital mortuaries for months on end as they are simply unable to meet the cost of a funeral. Making adequate financial provision helps to eliminate the potential heartbreak and guilt such circumstances would bring.