Q I am going to be 60 soon and have decided to try get my affairs in order. I have just completed my will and now want to concentrate on making sure I don’t leave any debts behind. With this in mind, I’d like to put a policy in place to cover the expense of my funeral. I was advised to get a whole of life policy, but friends warned me against this as they say the price keeps rising and can become unaffordable well before I’m likely to need it. Can you please confirm if this is the case?
A Death is understandably a topic that people don’t like to think a lot about. But as we all know, it’s an unavoidable part of life. A survey by Royal London in 2020 found that as many as 71% of adults had not made any plans to cover funeral costs. It is possible to do this once you are currently in good health and it’s cheaper than you’d expect. You will need to answer a lengthy list of medical questions to avail yourself of this cover.
Whole of Life is a straightforward long term life cover policy. It pays out a lump sum when you die. So, you can have peace of mind knowing you have helped to take care of your family financially after you have gone. It is something people can consider for leaving a lump sum behind to cover funeral costs. (can also be used to protect families from inheritance tax). It has no expiry date while you are alive, as long as you keep paying your premiums. The premium you pay, either monthly or annually, will stay the same throughout the policy. Your premium will never go up unless you choose to increase your cover amount. Older policies did keep rising on every review date as your friends advised but this is not the case here.
We’ve seen a growing trend in customers taking out Whole of Life cover polices to cover funeral costs, helping to ease some of the financial stress for their families when they pass away. Funeral costs vary depending on peoples’ wishes and location, but the minimum sum assured of €10,000 with our current preferred provider (royal London) should cover in most cases. The money can also be used to help with ongoing bills, settle any outstanding debts or help provide a legacy to your loved ones.
Other features include:
– You can get specialist support through their Helping Hand service for your partner and children in the event of a medical diagnosis, serious injury or bereavement.
– You can increase your cover amount after certain life events without having to answer any medical questions with their Guaranteed Insurability Option.
– Your cover amount can be paid out if you’re diagnosed with a terminal illness that cannot be cured and you’re not expected to live more than 12 months.
Optional extras:
– You can add Indexation to your policy to help combat inflation.
– You can add a Life Changes Option to your policy for an extra 10% on your premium. This unique option is all about giving you choice and control should your circumstances change in the future. With this option you can stop your premium payments, after having had your policy for 15 years or more, and still get something back.
If you want more information, please contact us for a fee free no obligation review.