All about the Funeral Benefit Option

Good to know – Over 50s Life Insurance is provided by Legal & General.

When you take out an Over 50s Life Insurance policy you can add the Funeral Benefit Option at no extra cost. With this option your cash sum will be paid directly to a Dignity funeral director, and they’ll help arrange the funeral with your family when the time comes. As a thank you, they’ll also donate £300 towards your funeral costs.

We know it’s not easy to think about your funeral now. But if you plan ahead, you can help out your loved ones through difficult times.

About Dignity

Dignity is one of the UK’s leading providers of funeral related services. They have a network of over 718 experienced funeral directors throughout the UK – many of whom have served their local communities for generations. Choose the Funeral Benefit Option and you’ll join one of over 640,000 (as per Dignity Annual Report & Accounts 2014) people who have already chosen Dignity to help them plan their funeral.

Why choose the Funeral Benefit Option?

  • An extra £300 towards your funeral - at no extra cost to you.
  • Peace of mind - your family will get expert help with your funeral arrangements.
  • Quick and easy to apply - simply by adding it to your policy.

How it works

  • If you decide to add this option, you’ll be able to do this after you receive your policy documentation.
  • Choose to charge* the cash sum from your policy to Dignity and they will contribute an extra £300 on top of your cash sum amount. This means that you agree to using a Dignity funeral director.
  • Legal & General will then pay your cash sum directly to Dignity when you die, rather than your estate.
  • If the cost of the funeral is greater than the cash sum from your policy plus the extra £300, then your estate or next of kin will need to pay the difference.
  • If the cash sum plus the extra £300 is greater than the cost of a funeral, the difference will be paid to your estate and may be subject to Inheritance Tax.
  • If you decide that you no longer want your policy 'charged' to Dignity you can choose to remove the charge by contacting them directly. In this case the £300 additional payment will no longer apply. If the charge is removed and a payment is made to your estate, this could be subject to Inheritance Tax.
  • Dignity will provide a welcome pack within 28 days of applying, and if you wish, you can notify Dignity of any special requests. The welcome pack will include a copy of the details for your funeral organiser. There will also be instructions on how to use the option when the time comes, and contact details so you can get in touch with Dignity at any time.

*By accepting the charge you agree that Legal & General will pay the cash sum payable on your death directly to Dignity rather than your estate.

Things you need to know:

  • A claim can be made after one year, regardless of the cause of death. If you die from natural causes within the first year we will refund any premiums paid, unless you die as the result of an accident, when we will pay your cash sum.
  • Depending on how long you live, total premiums paid may be greater than the cash sum payable on death.
  • After your 90th birthday you will stop paying premiums but your cover will continue.
  • If you stop paying premiums before the end of your policy, your cover will end 30 days after your missed premium and you won’t get anything back.
  • This is not a savings or investment product and has no cash value until a valid claim is made.
  • Inflation will reduce the buying power of your cash sum in the future.
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Things you need to know about Over 50s life insurance:
Premiums stop after your 90th birthday but you still enjoy cover for the rest of your life. In the first year, if you die from natural causes we will refund any premiums, or if you die as a result of an accident, we will pay your cash sum. After the first year regardless of the cause of death we will pay your cash sum. Depending on how long you live, the total sum paid in premiums may be more than the cash sum payable on death. If you stop paying your premiums before the end of your policy your cover will stop 30 days after your missed premium and you won’t get anything back. This isn’t a savings or investment product and has no cash value unless a valid claim is made. Inflation will reduce the buying power of your cash sum in the future.

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