Guaranteed Over 50 Plan vs Direct Cremation
Planning ahead is one of the most thoughtful things you can do for your loved ones. It can bring real peace of mind, knowing you’ve taken steps to protect your family when you’re gone. And with that reassurance, you’re free to focus on enjoying life today. But with different options available, how do you know which plans are right for you?
Here’s some things to consider when looking at two popular choices, a Guaranteed Over 50 Plan and a Direct Cremation Plan.
On this page:
- What is a Guaranteed Over 50 Plan?
- What is a Direct Cremation Plan?
- How do they compare?
- Things to consider
- Frequently asked questions
What is a Guaranteed Over 50 Plan?
A Guaranteed Over 50 Plan is a whole of life insurance policy designed for people aged 49-85.
You pay a fixed monthly premium, and when you pass away, a cash payout is made to your loved ones. This money can help with funeral costs but could be spent on anything else they might need or to leave behind a cash gift.
Depending on your age and smoker status your monthly premium could be as little as £4 per month. Your premiums are payable for life or until the policy anniversary after your 95th birthday, but you are covered for life. It’s important to note that over time inflation may reduce the value of your payout.
What is a Direct Cremation Plan?
A Direct Cremation Plan is designed for those aged 18 plus. It provides a simple cremation without a funeral service or ceremony and typically no mourners present. The cremation takes place privately, and the ashes are returned to the family afterwards.
It can be a low-cost option as it won’t include traditional funeral costs such as a funeral service and transportation for the family or close friends. The cost is paid upfront or via instalments (depending on the provider) and covers everything included, so it won’t be affected by inflation later.
How do they compare?
Guaranteed Over 50 Plan
- A cash payout your loved ones can use however they choose
- Family can arrange a service if they wish
- Flexible – your family can use the money towards your funeral or as a cash gift
- Monthly premiums starting from £4 a month (depending on age and smoker status)
- No medical questions
- Guaranteed payout once premiums have been paid for a set time
- No need to decide now what kind of funeral you want
Direct Cremation
- A simple unattended cremation without a funeral service
- Family can organise a separate service or wake, but this will be at an additional cost
- Limited to cremation only, not burial
- One-time payment or instalments that cover the whole cost of a cremation. Instalment plans can be more expensive
- No medical questions
- You need to commit now to choosing your funeral provider and having a cremation. You can cancel the policy and get your money back, although this could be minus a cancellation fee
Things to consider
Guaranteed Over 50 Plan
- You're only fully covered after you've had the plan for one year.
- Premiums are payable for your lifetime or until the policy anniversary after your 95th birthday. Your cover continues for life. If you stop paying premiums earlier, your insurance will end and you won't get anything back.
- Depending on how long you live, you could pay more in premiums than the cash sum paid out.
- Because the cash sum is fixed, inflation will reduce its buying power over time.
- Over 50s Insurance Plans do not guarantee to meet the full cost of a funeral.
Direct Cremation
- Most plans do not include a choice of crematorium or an option for family to attend the cremation.
- There's no viewing or visitation of the deceased.
If you choose a direct cremation are your family aware they wouldn't be able to attend the cremation?
It's worth speaking to your family about your choice, to make sure they understand they won’t be able to attend the cremation unless they can arrange this with the provider, which may be at an additional cost to them.
If you do choose to have a direct cremation, it’s also a good idea to make sure your family understand that your body will be transported to a crematorium that could potentially be some distance away from where they live. If it’s important to them you’re cremated locally then it’s worth finding a supplier that can offer a local crematorium.
Are your family likely to want to have a gathering or send off to say goodbye?
Our research shows that even when people chose a direct cremation for themselves, their loved-ones in most cases still want to get together to remember them – SunLife’s research shows that 89% still organised a small gathering, wake or memorial themselves.
While a direct cremation covers the basics, your family would still need to arrange and pay for any extras themselves.
If this is the case, a Guaranteed Over 50 Plan could be a good choice for you, as it gives your family the flexibility to spend the money you put aside for them as they wish.
Are you happy to decide on a fixed funeral type now, leaving little room for your family's input later?
It’s important to take a moment to think about what really feels right for you and your loved ones. A direct cremation offers a simple no-fuss option without a service, and for some, that’s exactly what they want. But before deciding, consider whether you’d like to leave more choice for your loved ones.
A Guaranteed Over 50 Plan gives flexibility. It pays out a cash sum that could go towards any type of farewell – whether that’s a direct cremation, a traditional funeral, or something in between. It means your loved ones aren’t tied to one option and can decide what feels right when the time comes. It also doesn’t have to be used for your send off, your family has full choice and flexibility over how they use it.
Can you afford to pay upfront for a direct cremation?
A direct cremation is typically the least expensive option, with the average headline cost being around £1,600-£1,800. However, this is often only the case if you pay upfront, which for many, is an unaffordable option. If you need to spread the cost and pay in instalments over a period of years, this can cost more than the initial headline price you would have seen. So, always make sure you’re looking at the total cost depending on how you choose to pay.
Frequently asked questions
The thoughts and opinions expressed in the page are those of the authors, intended to be informative, and do not necessarily reflect the official policy or position of SunLife. See our Terms of Use for more info.