July 20, 2018

What is the difference between a Pre-Paid Funeral plan and Whole of Life cover?

What is the difference between a Pre-Paid Funeral plan and Whole of Life cover?

Our process

When a client has a pre-existing condition, or has suffered a serious illness in the past, the first thing we do is pick up the phone. We speak to Underwriters at many of the UK’s leading Insurance companies. Discussing all of our client’s medical history helps us to identify the best company to apply to. This also means we avoid applying to companies who will end up being too expensive or worse, decline an application. By completing our research thoroughly, we are able to avoid wasting time and obtain the best terms possible for our clients.

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Our Client

We were contacted by Mrs B, a 66 year old non-smoker. She had been looking at various options to ensure that funds will be available to cover her funeral costs, so that her family will not have to cover this cost. Whilst currently in good health and still working part-time, she wanted to make sure that the correct policy was in place.

Initially, she spoke to one of the UK’s largest funeral plan specialists. She doesn’t have the funds available immediately and was told that she could arrange a plan now which would cover funeral costs amounting to £4,035. The plan would cost £22.22 a month and be payable for the next 25 years.

However, it was made clear to her that if she were to die within this period, the only funds available would be the premiums that she had paid in. There would be no interest available on the payments and any shortfall in the cost of the funeral would have to be met by her family.

Mrs B was uneasy with this option and contacted us to discuss other options.

The Outcome

We recommended a Whole of Life policy with a sum assured of £5,000 for a premium of only £15.97 a month. The full sum assured will be paid whenever Mrs B passes away.

We also helped Mrs B with a Trust Form to ensure that her Beneficiaries are named so that the proceeds are paid as soon as possible to her children in order for them to arrange the funeral. This is a service that we offer at no additional cost.

Please note that any premiums mentioned are indicative only and based on this specific case study/ example, which is shown for information purposes only. Your own circumstances will determine whether the amount payable is more or less than the figure quoted.

Funeral Pledge

Furthermore, most Insurance Companies have now signed up to the Funeral Pledge which was recommended by The Protection Distributors Group (PDG) **. The Pledge ensures that a sum assured of at least £5,000 is paid immediately towards the cost of a funeral if the full policy claim is likely to be delayed.

**David Mead, CEO of Future Proof is a founding member of PDG

Mrs B was more than happy to obtain a life insurance policy which would cover all costs and also was less expensive than the Funeral Plan. It pays to speak with an expert.

Client Ref: 132134129

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Next steps

Whilst you are welcome to get a quote on-line we would recommend you talk to one of our advisers.

Any quote that your adviser provides you with will take into account to your circumstances, your medical history, as well as your budget!

An on-line quote is just that – a quote – it isn’t a definite offer of cover. What really matters is the premium you are offered, after your application has been assessed.

Call Freephone 0800 644 4468 – Monday to Thursday from 09.00 to 19.00 and on Friday between 09.00 and 17.00.

Please feel free to read our Independent client reviews, or read about the team at Future Proof.

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Take a look at our handy guides ‘What Cover is Right for me?’

Do you suffer with a medical condition and concerned you can’t secure Life Insurance?  Please view our ‘Medical Guides’ for further information.

Whilst we will make every endeavour to help someone to arrange insurance, there is no guarantee of success.  All applications are subject to underwriting.

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