Sun Life has now launched a funeral plan alongside its existing Over 50s whole of life plan. This new plan offers a choice of three cover levels and can be paid for upfront by a lump sum or monthly, when the price is dependent on age.
The full benefit table is clearly laid out on the Sun Life website by hitting the ‘Compare our Plans’ link here.
As with most other guaranteed acceptance whole of life plans, the full sum insured on the monthly option is only payable on death after two years (or immediately if the death is accidental). Otherwise, on death during that two year period, 120% of premiums paid are passed on to Golden Charter to go towards the funeral. Age range is 50-80 at outset and the life policy is a whole of life plan, with guaranteed premiums.
On death, Golden Charter arranges the funeral with one of its funeral directors.
What They Say
Managing director Dean Lamble said: “I believe this new product means we’re giving our customers an unrivalled choice. We know of no other national provider of both an over 50s plan and a funeral plan, so people can choose the service which is affordable for them at a time when funeral costs are rocketing.”
What We Say
"The average funeral now costs £3,456 according to a 2013 Mintel report – above the Government’s Bereavement Payment level of £2,000 – and can cost considerably more. Given how little savings and life insurance cover most people have, that could be an issue for many people. Sun Life’s plan offers an alternative, either paid for upfront (so avoiding future funeral inflation) or monthly through a linked life insurance policy.
"There are limitations but if a client is looking at an over 50s plan, this may be an alternative for them. As with all such plans though, if you live long enough you will end up paying in more than you can get out."