What’s the difference between a Skipton Funeral Plan and an over 50’s plan?

Who’s picking up the final tab?

We know it's a difficult subject, but we should talk about funerals. More specifically, ways you can pay for them. And even more specifically, the differences between generic over 50s’ life insurance plans and a Skipton Funeral Plan, provided by Dignity.

The differences...

Over 50’s plan

The way an over 50’s life insurance plan typically works is that you pay monthly instalments and the plan pays out a lump sum when you die. The lump sum is based on your age and the amount of your monthly payments. The money goes to your next of kin when you die and they can use it to pay towards your funeral, although there are no rules stating it has to be spent on that.

Skipton Funeral Plan

A Skipton Funeral Plan is prepaid and prearranged by you. It takes care of your funeral arrangements so your loved ones don’t have to. You can pay for it in a single lump sum or spread the payments over between 12 months and 25 years, providing all the instalments are paid by the eldest person named on the plan reaches the age of 85. If you pay by instalments and pass away after 12 months, any outstanding balance will be paid off. That's the Skipton Commitment.

For more information on the Skipton Commitment, please see the Instalment Payments section of the Skipton Funeral Plan Terms and Conditions for further details.

Pauline's quote

Knowing you’ve planned ahead for when you’re no longer here can give you and your family peace of mind. That’s why we offer a range of legacy planning services.

-Lynsey Barrett, Partnership Manager

The numbers

This is where it gets interesting, and why we think a Skipton Funeral Plan makes financial sense. Here are a few facts you might want to consider.

Firstly, you might not get as much back as you paid in with an over 50’s plan. For example, if you started paying £7 a month at age 58 into a plan that guaranteed to pay you £1,546 when you died, you’d have paid in £1,546 by the time you were 76.

That means if you lived longer and continued to make payments, you’d actually pay in more than would be paid back upon your death. However, if you died earlier the payout would exceed your contributions, so it’s important to consider both eventualities.

Take a close look at the legal clauses in your over 50’s plan too. If you miss one payment, which results in your plan being cancelled, your next of kin might not get any money at all when you die, whereas you’d get all your money back if your Skipton Funeral Plan was cancelled, minus a cancellation fee of £195.


Inflation can also affect the value of your over 50’s policy, because typically your final payout is set when you apply and won’t rise with inflation.

That’s one of the good things about our funeral plans. The cost of the guaranteed services within your plan is fixed at today’s prices, no matter how far in the future your funeral might be or how much funeral costs rise in that time.

And if you add special requests, contributions you make for these also rise in line with inflation.

The people in your life

Obviously, it’s not all about the money. It’s about helping your loved ones too. And that’s another benefit of the Skipton Funeral Plan.

Because it removes the worry for your family of finding a funeral director, deciding on the arrangements and paying for the services that are guaranteed as part of your plan. All of these things are arranged and paid for, up front by you.

The person you choose to arrange your funeral also has the benefit of a 24-hour advice and bereavement support line, so you can be assured that they will have access to help and support at a very difficult time.

The Breakdown

Skipton Funeral PlanOver 50's Plan
Monthly payments Optional Yes
Protects against rising funeral costs Yes No
A prearranged prepaid Funeral Plan Yes No
You get your money back if you cancel
or close the policy
Yes (Minus a £195
cancellation fee)
24 hour bereavement support Yes No
Can only be used for funeral costs Yes No

Learn more about the Skipton Funeral Plan

Call Dignity on the number below or click for more information

The Skipton Funeral Plan is provided by Dignity Pre Arrangement Limited. If you take out a Skipton Funeral Plan this will be on the basis of a contract between you and Dignity Pre Arrangement Limited. A company registered in England No. 1862158. VAT registered No. 486 6081 14. Registered Office: 4 King Edwards Court, King Edwards Square, Sutton Coldfield, West Midlands B73 6AP. Telephone No. 0121 354 1557. Fax No. 0121 355 8081. Dignity Funerals Limited and Dignity Pre Arrangement Limited are part of the Dignity plc Group. Dignity Pre Arrangement Limited is regulated by the Funeral Planning Authority and not by the Financial Conduct Authority.