When we think of insurance, it is generally in terms of securing protection against unexpected or accidental events which lead to our suffering some form of financial loss – the insurance policy is designed to provide compensation, or in technical terms, indemnity.

Over 50 life insurance, on the other hand, is insurance against an inevitable – not unexpected or accidental – event.

Because other types of insurance offer protection something that might happen, whilst over 50 life insurance offers a financial benefit for something that is definitely going to happen, you might say that the latter is needed more than the former.

Over 50 life insurance is perhaps one of the easiest and most transparent types of insurance to understand. In return for the premiums you pay, the policy pays out a guaranteed lump sum cash benefit upon your death. The conclusion is inescapable – when you die, the policy makes a cash settlement.

That cash settlement may also be used to help cover the costs of arrangements that are likely to be considered inescapable for many people – the cost of a funeral ceremony.

Over 50s life insurance offers a number of benefits over and above regular life insurance policies:

Whilst over 50 life insurance may give you the peace of mind and security of knowing that your funeral expenses – or a significant part of them – may be covered when the time comes, this is not the only use to which the guaranteed cash settlement may be used.

The payout may be used to help cover any outstanding debts or credit card balances you leave when you die or may simply be left as a financial legacy for your loved ones.

Although it is often described as funeral insurance, over 50s life insurance provides a lump sum cash payment to your designated beneficiaries when you die. Although you may have expressed a wish for the funds to help pay for your funeral, the recipients are not obliged to spend the money in this way – but most family members are, of course, likely to respect your wishes.

If you are especially concerned about ensuring that there are funds available upon your death to cover the costs of the funeral arrangements you want, then an alternative form of financial planning might lie in a prepaid funeral plan.

Just as the term suggests, this provides for your specific wishes regarding your funeral arrangements and, since you pay for the services of your chosen funeral director in advance, you have the additional benefit of beating the current high rates of inflation in the cost of dying – as described in a story published in the Express newspaper on the 9th of May 2017.