Life Insurance Policy - over 70

Funeral plans are now regulated, but used not to be. Some companies did not survive. The ones that remain should be reliable now, but check the small print, as they may not cover everything.
Funeral directors can send the bill to the deceased’s bank and it will be paid, if funds allow.
Interest rates on savings accounts are dropping now, but Regular Savings accounts are still some of the better ones, especially if you can still find one with a decent fixed rate.

My Late MiL paid for her Funeral in the late 1980's. She always said she wasn't long for this world never believed that, strong as a Horse that woman.
She passed away 2018 age 94. The Undertakers commented on how much it would have been now.
She had the last laugh.

I have never had life insurance other than when it was tied up with our mortgage.
I Woukd put money away in savings because of the possibility of losing money in a plan if the company go bust, and they do, leaving people with neither money nor funeral.

After my husband died in 2014 and the shock of the funeral costs I took out a prepaid funeral plan. A few years ago my mum did the same [no influence from me]. It makes things so much easier for those left behind.

GranPepp

M0nica

Put the money in a good savings account. Easier, less difficult for your family to access and safer.

what makes you think accessing savings account of a deceased person is easy? It might be sometimes but depends on the circumstances. I worked in financial services for 40 years and it's complicated

It is considerably easier than retrieving money from these insurance policies. The savings account fall within the estate of the deceased and the executors can eventually release the funds in thesame way you eventually access the money in bank accounts, deposit accounts and savings bonds.

I have beeen executor of about half a dozen different estates and it has always been quite straightforward. It is always specialist insurance products that are difficult to liquidize because they have so many seprate conditions they want fulfilled before they will release the funds.

My parents have life insurance. I think mum said, the amount you receive back, reduces after a certain age.

RillaofIngleside

My father in law received £1900 less than he had contributed, having lived to 96. Got to the point where you don't know whether to stop and lose the money or keep going so you don't.

That happened with my MIL too, she took out two policies thinking it would help us with her funeral costs I think, but she had paid in a lot more than we received.

Sue65

LPA ends with your death
Then you have to access money via probate
Perhaps your daughter could be a joint holder of a savings account so it would take her signature only when you die

Yes, probate in England and Wales, called Confirmation in Scotland. POA does stop when the person dies. Then it is probate/Confirmation. However bank or building society will release money from the deceased's account before probate/Confirmation for what is called "death bed expenses" - funeral/funeral tea etc. You just have to produce the bill

M0nica

Put the money in a good savings account. Easier, less difficult for your family to access and safer.

what makes you think accessing savings account of a deceased person is easy? It might be sometimes but depends on the circumstances. I worked in financial services for 40 years and it's complicated

We "bought" funeral plans some years ago, the main attractions being a much reduced cost as we were nowhere near old age and the fact that our family simply contact the named funeral directors who then immediately take over as per our wishes. Other methods all involve making an application for the money from your estate and an inevitable delay.

Have you looked into a pre-paid funeral plan?

I don't know where you live, but I do know that an old school friend of mine who lives in Scotland has one.

Here (Denmark) any firm of undertakers can and will give you information about one - the money you put into it, cannot be appropriated if you should owe money in taxes and can be made immediately available to pay your funeral expenses, unlike any other money you die possessed of, and which your heirs will have to wait for.

Gave No 1 son cash to cover the direct cremation I have requested, to save the wait for probate. Told son No 2 of this. All good.

I don't have life insurance either. I did when I was younger and had dependents and a mortgage, but now I'm debt free with some savings and a my own home I don't see the point. The funeral money would just come from my estate, though I have thought about paying directly for the funeral in advance.

Win I would love to know which accounts are now paying 6-7% on savings accounts as the highest I can find are below 5% just now.

To me life insurance is to pay mortgage, we finished mortgage 40 yrs ago, as we married young. Apart from mortgages and business reasons/taxes - perhaps saving may be best and have ease of access.

We save small pots of money for health, dental, funerals, pets, holidays - maybe that would accomplish what you desire?

I'd opt for saving but I know someone who has purchased their funeral and are paying for it in installments. They are happy it will be paid for and apparently paying now means the price will remain the same. I'm not sure what happens if they die before they've paid it off.

Thank you for this thread as my life insurance cover expires this month. I think it was originally tied into my old mortgage which I've already repaid. I was thinking about another life policy but now I'm thinking along the lines suggested and investing that money I will be saving on life insurance into a funeral plan or into a savings plan. I did have a critical illness cover which didnt pay out as the critical illness I had 5 years ago wasn't critical enough! Hindsight is a wonderful thing and I should have taken better advice

We have simple funeral plans - should have done it so much earlier in life, but the premiums are quite reasonable and the funeral expenses will be covered, however much costs increase. The loss of three close friends over a short time made us think, and at least now our DC will not have to worry about funding funerals for us.

I think you might have an Accidental Death Policy albertina?
A Life (really should be called Death) Policy should cover you until you die.

I have the accidental one, which will end when I’m 75. I took it out in ‘87 when I started driving a nightmare daily journey to take the DDs to school! It wasn’t expensive - only £3 a month, but covered our £26K mortgage, should the worst happen to me.
I still pay it, never know what might happen in the next 18 months!

An LPA is only valid when the person is still alive, it ends when you die. I have a savings account.

I was thinking along your lines SpringsEternal.. my savings are in the joint names of my youngest son and myself,, so he can easily get it, and I have a prepaid funeral, cremation, I dont want anything fancy, no flowers etc.. and they, ie family can do what they want if they want to expand it.. well I won`t be there to see or hear it will I!

LPA ends with your death
Then you have to access money via probate
Perhaps your daughter could be a joint holder of a savings account so it would take her signature only when you die

My mum fully prepaid a funeral plan which was absolutely brilliant, and covered most of the eventual costs.

Thanks so much for asking about this as it's exactly what I have been worrying about this week. I have a life insurance policy but it only runs till I am 77. I have defied the norms in my family by living past 70 ( 74 next Feb) so it's something that has been on my mind.

Agree A good savings plan

Most banks do a regular saving plan with up to £250/300 per month, if you have your current account with them. They give you 6/7% return, I always have one or two on the go, that would almost cover a funeral. Otherwise you could just take out a funeral plan, you can pay for that by instalments too in some cases.