Am I too young to take out a funeral plan?

I am 46 and recently inherited a few thousand pounds. I would like to use the money to pay for my own funeral, but lump sum pre-paid plans seem to be targeted at the over-50s. The only option for me seems to be a monthly payment plan but that would not work with my lump sum.

I am unemployed and living on state benefits with no income to fund the monthly payments. Is there any way I can buy a lump sum plan?


A funeral plan allows you to organise and pay for your funeral up front at today’s prices. This can be helpful as funeral costs tend to rise faster than the rate of inflation.

However, different plans provide different levels of benefits, and with some of the cheaper policies it is likely there will be additional costs unless you have a very basic funeral. These plans also don’t tend to cover the costs of burial plots or headstones.

Many providers only offer their products to those aged over 50, as these are the people who are most likely to buy them. However, a limited number of providers offer plans to younger people. One is Safe Hands.

But why would you want to buy a funeral plan at your age, unless you are in bad health? If you are healthy, you could conceivably live for another 50 years and, as you are unemployed, you might have other uses for this money.


A much better idea is to save the money in a bank or building society. While it is unlikely to grow as fast as increases in funeral costs, the money will at least be there for you if you need it for other purposes.

Consider one of the high-interest current account deals (5% with Nationwide and TSB or 3% with Santander). With the new savings allowance of £1,000 coming in from April, you won’t pay income tax on your interest.

Moneywise adds: Before you think about spending the money or locking it away in a savings account, you must report the inheritance to your local benefit office.

If you deliberately fail to report a change in your personal circumstances, you are treated as having committed benefit fraud, which could lead to a fine or prison sentence.

Patrick Connolly is a certified financial planner for Chase de Vere.

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