How the 50 Plus funeral benefit option works
The funeral benefit option is specifically designed to help pay for funeral costs, and you can get an extra 10% on top of your amount of cover.
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How does the funeral benefit option work?
- Simply select the funeral benefit option when you apply for your 50 Plus plan
- Dignity will send you a welcome pack with along with information to give your next of kin
- The Dignity funeral director will be paid automatically from your cash lump sum and your family will receive support and guidance at every step
- If your funeral costs less than the cash lump sum from your 50 Plus plan, the difference will be paid to your estate. If it costs more, the difference will need to be paid by your estate or family
An example of how this could work
The funeral benefit works differently depending on whether your funeral costs more or less than the amount paid out by your 50 Plus plan.
If you took out £2,500 of cover and your funeral costs less
If your funeral costs £2,000
- Your plan would pay out £2,500
- Dignity would reduce your funeral cost by 10% making it £1,800
- £700 would be paid back into your estate
If you took out £2,500 of cover and your funeral costs more
If your funeral costs £3,000
- Your plan would pay out £2,750 (£2,500 + 10% of the cover you took out)
- The remaining £250 would need to be paid by your estate
It's important to make allowances for the increase in the cost of living. Your 50 Plus plan cover is fixed so the lump sum you select now won't be worth as much in the future.
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