Life Insurance... or just save up £6K

[Alex321]

It's just to cover the cost of my funeral, which is currently in the region of six grand, i understand. I know my Dad's cost around that, and his LI policy was for £4K, so we had to put in the extra. I don't have any dependents and don't want my nephews or nieces having to foot the bill for disposing of me (presuming I outlive my mother, brother and sister).

The figures came from MSE's article on life insurance for over 50s, and this table in particular:
View attachment 633617



Depends when you take out the cover. If I take out a policy today and get killed by a bus tomorrow... it won't pay out.
My employer will pay out 5 months wages plus all earnings from the current month to my next of kin should i get run over by a bus tomorrow.... so plenty to cover my funeral costs there. Obviously that won't be there if I'm not in employment when i go.

I just want to be able to cover the costs of my funeral

According to that table, they will payout if it is accidental death. So being hit by a bus is fine, dying of COVID isn't.

 

[MontyVeda]

According to that table, they will pay out if it is accidental death. So being hit by a bus is fine, dying of COVID isn't.

I think it's saying it'll pay out before the 12/24 month threshold if accidental, otherwise, any death after 12/24 months?

(I've never been great at deciphering layman's terms)

 

[Rusty Nails]

I have an aunt who will probably die in the next couple of years, who has no insurance, so I will end up paying for her funeral.
I can't ask her other nephews as they even defaulted out of paying the undertaker for their mother's funeral

 

[vickster]

I have an aunt who will probably die in the next couple of years, who has no insurance, so I will end up paying for her funeral.
I can't ask her other nephews as they even defaulted out of paying the undertaker for their mother's funeral

Does she have no estate at all?

 

[Alex321]

I think it's saying it'll pay out before the 12/24 month threshold if accidental, otherwise, any death after 12/24 months?

(I've never been great at deciphering layman's terms)

Yes, that is how I read it as well.

 

[Deleted member 26715]

According to R4s You and Yours consumer program, prepaid funeral plans are in many cases, a scam.

My father took 2 plans out with Age Concern in 1998, I think they were £850 each, we used the one for my mother in 2015, we will be using my fathers on the 14th, they worked out for him & his estate. But the undertaking business has now been take over by US Venture Capitalists so prices are rising significantly

 

[vickster]

Here's a general article from MSE on how to plan for funeral expenses including pre-paid plans
https://www.moneysavingexpert.com/family/prepaid-funeral-plans/

 

[Rusty Nails]

Does she have no estate at all?

Not a penny. Living in a care home.

 

[ColinJ]

I have the cost of my funeral covered... there will not be one!

I am leaving my body to be a plaything for medical students, and they can bin what is left afterwards***.


*** I just checked. Apparently, the medical school will arrange and pay for a cremation unless relatives insist on reclaiming the spare parts, in which case the silly billies can pay for it themselves!

 

[MontyVeda]

I have the cost of my funeral covered... there will not be one!

I am leaving my body to be a plaything for medical students, and they can bin what is left afterwards***.


*** I just checked. Apparently, the medical school will arrange and pay for a cremation unless relatives insist on reclaiming the spare parts, in which case the silly billies can pay for it themselves!

just make sure your relatives know your wishes. The default setting is that you'd have wanted a proper send off.

 

[MontyVeda]

I have an aunt who will probably die in the next couple of years, who has no insurance, so I will end up paying for her funeral.
I can't ask her other nephews as they even defaulted out of paying the undertaker for their mother's funeral

This is what I'm afraid of. If it did fall to my nephews and nieces, some will be in a better position to pay than others, some might be stubborn and those with most love might have the least money.

 

[Rusty Nails]

This is what I'm afraid of. If it did fall to my nephews and nieces, some will be in a better position to pay than others, some might be stubborn and those with most love might have the least money.

If you have any estate at all then the executor can pay the funeral expenses out of the estate. You are doing the right thing in at least making preparations to avoid expenses for your family.

 

[Electric_Andy]

If it's only £6k pay-out then I'd just put it aside, but use a separate savings account so you're not tempted to dip into it on a rainy day. My sister had life insurance because her husband works for a Health INsurance company. She is recovering from cancer and they paid out enough so that they've paid off their mortgage, it also paid for counselling and they had a weekend break chucked in as well. For that sort of cover I'd certinaly pay a monthly £30, but for a £6 payout, no. Thing is, you're paying into it for 17 years and then after that it's like the lottery - you won't want to stop paying in (to their pockets) because I assume you wouldn't then be covered

 

[MontyVeda]

If you have any estate at all then the executor can pay the funeral expenses out of the estate. You are doing the right thing in at least making preparations to avoid expenses for your family.

I rent my home and doubt i'll ever get on the mortgage ladder so no estate to speak of. Squirrelling away what i can into my PBs is probably the best bet.

 

[SpokeyDokey]

just make sure your relatives know your wishes. The default setting is that you'd have wanted a proper send off.

We have our wishes filed with our Wills.

Neither of us are having funeral services etc. Direct to crematorium and that's it.

Nothing to do with finances it's just what we want - keeping it nice and simple.