All about the Funeral Benefit Option

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.

If you’re thinking about using the cash sum from your plan to help towards your funeral expenses, you can get an extra £300 by choosing the Funeral Benefit Option. 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. They’ll also donate £300 towards your funeral costs.

It’s your choice whether to add the Funeral Benefit Option to your policy, although you can do so at no extra cost when you take out Over 50s Life Insurance with us.

About Dignity

Dignity is one of the UK’s leading providers of funeral-related services. They have a network of more than 700 experienced funeral directors throughout the UK – many who have served their local communities for generations.

Choose the Funeral Benefit Option and you’ll join one of over 73,000 people in 2015 (as per Dignity Annual Report & Accounts 2015) who chose 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 add it to your policy.

How it works

  • If you choose to apply for the Funeral Benefit Option, you’re agreeing to use a Dignity Funeral Director to arrange your funeral.
  • If you die after the first year, we’ll pay the cash sum to Dignity, who’ll provide an additional contribution of £300 towards your funeral costs if they carry out your funeral.
  • If you die within the first year due to an accident, we’ll pay the cash sum to your estate or next of kin. If you die within the first year due to other reasons, we’ll refund any premiums paid to your estate or next of kin. In either case, if you choose Dignity to carry out your funeral they’ll still provide an additional contribution of £300 towards it.
  • If your funeral costs are more than the policy value plus the extra £300 from Dignity, your estate or next of kin will need to pay the difference.
  • If your funeral costs are less than the policy value plus the extra £300 from Dignity, we’ll refund the difference to your estate or next of kin.
  • If you apply for the Funeral Benefit Option, Dignity will send you a Funeral Benefit Plan in the post within 28 days. This pack will contain the full terms and conditions.
  • If you change your mind and no longer wish to use a Dignity Funeral Director, you’ll need to notify Dignity.
  • You’re free to cancel the Funeral Benefit Option at any time during your policy and there will be no cancellation costs incurred. The option will simply be removed and you’ll continue paying into your Over 50’s policy.
  • After your death, your next of kin also have the option to cancel the Funeral Benefit Option if they do not wish to use Dignity. The £300 contribution will be removed and the full cash sum amount will be paid out.
  • It’s worth noting that the Funeral Benefit Option may not be suitable for you if you want the cash sum to be used as a gift for your loved ones.

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’ll refund any premiums paid, unless you die as the result of an accident, when we’ll 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’ll 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.

Over 50s Life Insurance is provided by Legal & General.

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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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