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Written by Mitch Tapner.
20 minute read
If you’re thinking ahead about funeral costs, it’s natural to want clarity about your options. Many people come across the Post Office and assume they offer prepaid funeral plans, but they don’t.
What they provide is Over 50s life cover, which works differently. It pays out a cash lump sum when you die. Your loved ones can use that money however they choose, including towards a funeral, but it doesn’t guarantee any funeral services or prices.
In this guide, we explain how life insurance and funeral plans differ, what each one covers, and how to decide what might be right for you. We’ll also look at what the Post Office policy includes, how it works, and how it compares to a guaranteed funeral plan.
Our aim is to help you feel more confident about your choices by understanding what’s covered, how much it might cost, and what each option offers in terms of peace of mind.
No, not in the traditional sense. The Post Office does not provide a prepaid funeral plan that locks in funeral services and prices. Instead, they offer Over 50s Life Cover, a type of life insurance that pays a cash lump sum when you die.
Your family can use this money however they choose, including for a funeral, but it’s not tied to any specific arrangements or costs.
That said, the Post Office policy does include an optional Funeral Benefit Option. If you choose this, the payout can go directly to a funeral director (via their partner, Co‑op Funeralcare), and they’ll contribute an extra £250 towards certain funeral types.
The main difference is that life insurance pays out money your loved ones can use in any way they choose, whether that’s helping with debts, giving to charity, or passing on to family. A funeral plan, on the other hand, covers the funeral itself. It takes care of the arrangements in advance and locks in the cost, so there’s nothing more to organise or pay for when the time comes.
To clarify, the Post Office doesn’t offer a prepaid funeral plan. Instead, they provide a type of life insurance, which works quite differently.
With the Post Office Over 50s Life Cover:
If you die after the first 12 months from natural causes, your chosen amount will be paid out. If death happens due to an accident at any time, the policy pays out immediately and may even pay double.
Things to keep in mind:
If you’re comparing funeral plans vs life insurance, it’s important to understand how each one works. Here’s a side-by-side look at how Post Office Over 50s Life Cover compares to an Aura prepaid funeral plan.
| Feature | Insurance payout (Post Office) | Aura prepaid funeral plan |
|---|---|---|
| Type of product | Prepaid funeral plan with services secured in advance | Life insurance (Over 50s whole-of-life policy) that pays a cash lump sum on death |
| What it covers | Funeral services such as cremation, transport and coffin, agreed in your plan | A cash payout (up to £10,000 depending on age and premiums) that your loved ones can use however they wish |
| Cost certainty | Funeral costs are locked in at today’s prices | The payout is fixed but may not keep up with potential inflation |
| Regulation | Regulated as a funeral plan by the FCA | Regulated by the FCA and PRA as a life insurance product |
| Risk of shortfall | No shortfall, services covered in full according to the plan | If used for funeral costs, the lump sum may not cover the full amount if funeral prices have risen |
| Peace of mind | Everything is arranged and paid for in advance | Your family will need to organise the funeral and pay for it at the time, using the money from the policy |
The difference comes down to what each option offers. The Post Office provides life insurance, which gives your loved ones money to use as they see fit. But if your goal is to make sure the funeral is fully arranged and paid for in advance, a prepaid plan like Aura’s offers more certainty and comfort.
A funeral plan is a way to sort out the practical and financial side of your funeral in advance. It’s different from insurance because it covers specific services, not just a cash payout.
With Aura, you can pay upfront or choose a monthly payment option that suits your budget.
Once the plan is in place, everything is arranged as you’ve set out. When the time comes, a trusted funeral director carries out the wishes in your plan, and there’s nothing more for your loved ones to pay for the services included.
All Aura funeral plans are fully regulated by the Financial Conduct Authority (FCA), and every payment you make is protected by the Financial Services Compensation Scheme (FSCS). The money goes into a secure, independently managed trust, ready to be used when it’s needed.
Select a plan that meets your needs from our range of highly-rated and fully-secure funeral plan options.
Speak to one of our lovely expertsℹ to secure your plan, or purchase your plan securely online in a few simple steps.
We’ll place your money into a secure, independently-managed trust, so that it’s ready to be used for when the time comes.
After you’ve died, we’ll bring you into our care and support your loved ones through the initial paperwork with patience and compassion.
We’ll let your loved ones know the date and time of your cremation, and on the day, transport you privately to the crematorium.
Within 21 days of the cremation, we’ll arrange to hand-deliver your ashes to your chosen person at no additional cost, or we’ll scatter them on their behalf.
*Before purchase, you’ll receive a clear summary of what’s included, what’s not, and your rights under the plan*
A funeral plan helps take care of the practical elements of a funeral. It gives the chance to make key decisions in advance, which can ease both emotional and financial pressure for the people left behind.
What’s included can vary depending on the provider. With Aura, the following are always guaranteed:
What’s included with Aura?
What’s not included with Aura?
Aura’s funeral plans are designed to cover the essential, practical parts of a cremation. Some elements are not included as standard, but can often be arranged separately or added to a different type of plan if needed.
Every funeral provider is different, so it’s important to check what each plan includes. Clear, upfront information can help prevent confusion or unexpected costs later on and that can make things a little easier for those who are grieving.
Aura has a variety of prepaid funeral plans to match different budgets and personal preferences. Whether your choice is attended or not, we’ll either scatter your ashes in the crematorium’s garden or deliver them by hand to someone close, usually within 21 days.
Our simple Direct Cremation Plan offers a simple and understated unattended direct cremation.
*Terms and conditions apply. You will receive a funeral plan summary before purchase.*
The cost of a funeral plan depends on the type of service you choose, where you live, and how you decide to pay. You can either pay in full or spread the cost over time.
Aura’s unattended direct cremation plan is a simple, fixed-price option of £1,695, no matter where you are in the UK. It covers all the essentials, including cremation fees, collection and care of the person who has died, a basic coffin, and the return of ashes. If you’d prefer to pay monthly, Aura offers flexible instalments over 12 to 24 months with no extra charges.
If you’re looking for a more personal goodbye, an attended direct cremation plan includes a short, private farewell. Aura offers this from £2,395, which includes a short, 10-minute service with up to 15 guests. You can also choose a larger attended service from £2,995, which includes a 40-minute ceremony at one of our partnered crematoria, with space for as many people as the venue allows.
A prepaid funeral plan lets you arrange and pay for what you want in advance. This can give peace of mind, knowing the cost is settled and your wishes are clear. Once your plan is fully paid and active, there is usually nothing more for your loved ones to pay for the services included.
A funeral plan won’t suit everyone, but many people find it a helpful way to plan ahead. It can give you more control over your wishes and take pressure off your loved ones when the time comes.
One of the main benefits is cost protection. By arranging and paying in advance, you can avoid the impact of potential rising funeral costs. According to SunLife’s 2025 Cost of Dying report, the cost of even a simple funeral continues to rise each year, making planning ahead more important than ever.
When you take out a prepaid funeral plan, the services are clearly listed and guaranteed. This means your family won’t have to make difficult decisions or worry about how to cover the costs at an already emotional time.
Funeral plans in the UK are regulated by the Financial Conduct Authority (FCA), which ensures your money is protected and used only for the funeral you’ve arranged.
If you’re looking for peace of mind and want to ease the future burden on those closest to you, a funeral plan may be worth considering.
Prepaid funeral plans can be an important part of end-of-life planning, helping you make thoughtful decisions now to ease the burden on your loved ones later. Compared with simple life insurance, funeral plans offer key advantages:
*Funeral plans may not be suitable for everyone. Some services are not included as standard. Please check the plan summary before purchase*
When choosing a funeral plan, it’s reassuring to know that funeral plan regulation is in place to protect you and your money.
All prepaid funeral plans in the UK are regulated by the Financial Conduct Authority (FCA). This means providers must follow strict rules — they must treat you fairly, explain exactly what’s included in your plan, and keep your money safe, usually in a secure trust or insurance policy.
This regulation also means you have clear rights. You’ll know how to cancel if needed, what to expect from the service, and where to turn if something goes wrong.
Your payments are also protected by the Financial Services Compensation Scheme (FSCS), which offers extra security if the provider were ever to go out of business.
A common issue with life insurance is that the payout may not cover the full cost of a funeral. For example:
*Please note, these figures are for illustrative purposes only and may not reflect your circumstances.*
An Aura funeral plan gives you a clear way to pay for funeral expenses in advance. The services you choose are fully covered, so there’s nothing more to pay for those agreed elements when the time comes.
There’s no one-size-fits-all answer. The right funeral plan depends on your wishes, your budget, and how much involvement you’d like your family to have when the time comes.
That said, many people choose Aura for a few important reasons:
Clear, honest pricing
Aura clearly sets out what each plan includes, so there are no hidden fees or unexpected extras. You’ll know exactly what you’re paying for, with the choice to pay in full or spread the cost monthly.
FCA regulation and strong protections
Aura is fully regulated by the Financial Conduct Authority (FCA), which means your money is protected by clear rules. Your plan is also covered by the Financial Services Compensation Scheme (FSCS), giving you extra peace of mind.
Simple, flexible plan options
Aura offers several plan options to suit different needs. Whether you prefer a simple direct cremation or want something more personalised, there’s a plan to match. If cost is a deciding factor, direct cremation prices are among the most affordable, without compromising on care or quality.
Kind and compassionate service
Planning ahead isn’t always easy, but Aura’s team is here to help. They take the time to listen, explain your options clearly, and offer gentle support throughout the process.
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| Starting Price | £1,695 | £2,095 | £1,700 | £1,700 | £1,885 |
| Trustpilot | 4.9/5 stars | 4.8/5 stars | 4.6/5 stars | 4.8/5 stars | 4.4/5 stars |
| Fairer Finance | |||||
| All-Inclusive Pricingℹ | |||||
| Transparent Pricingℹ | |||||
| Free Cancellation Anytimeℹ |
It’s a fair question, and one many people ask. If you’ve already paid into a funeral plan, you’ll want to know your money is protected, even if the provider goes out of business.
This is where FCA regulation makes a real difference. As of July 2022, all prepaid funeral plan providers must be regulated by the FCA, and therefore must take steps to protect your money. That includes keeping your money separate from company finances, either in a regulated insurance policy or a dedicated trust.
At Aura, we take this responsibility seriously. Your payments go into a secure, independently managed trust. You can read more about how we keep your money safe.
If a provider does fail, there are protections in place. Your plan may be moved to another authorised provider so it can still be honoured. If that’s not possible, you’ll usually get a refund. In some situations, you might also be able to claim through the Financial Services Compensation Scheme (FSCS).
These systems are designed to make sure your money is there when it’s needed — and that your funeral can still go ahead as planned.
Everyone’s needs and priorities are different. Post Office offers over 50s cover, while Aura provides prepaid funeral plans, so the two options serve different purposes.
If your main goal is to plan a funeral in advance, including the specific services and costs, a prepaid funeral plan with Aura might be a better fit. It gives clarity and reassurance about what’s included and what will be paid for.
That said, the right choice depends on what matters most to you. It’s worth taking time to speak with both providers and think about what feels right for you and your family before deciding.
Why people choose Aura:
If you’re unsure where to start, we’re here to help you compare funeral plans and understand what each one offers. Whether you’re considering a direct cremation or a more traditional service, we’ll explain your options clearly and support you every step of the way.
At Aura, we believe in treating every person that turns to us as if they were our own family. This dedication has earned us an exceptional 4.9/5 Trustpilot rating, making us the highest rated ‘Cremation Services’ provider on the platform.
We’re honoured to be a trusted partner for families across the UK. Read their stories below.
Some companies offer funeral insurance, which pays out a lump sum when someone dies. The money can be used in any way the family chooses – including to help with funeral costs. However, it doesn’t guarantee that a funeral will be arranged, or that all the costs will be covered.
Post Office Over 50s Life Cover isn’t the same as funeral insurance. It’s a type of life insurance, which works a little differently.
A funeral plan is different again. It lets you arrange and pay for specific funeral services in advance. Everything is set out clearly, so when the time comes, the funeral goes ahead as planned. This can ease financial pressure and bring peace of mind to those left behind.
Not for the services included in your plan. Once a prepaid funeral plan is fully paid and in place, items like cremation, care of the person who has died, and the coffin are covered in full.
If your family asks for anything outside of what’s included, such as flowers, venue hire, or extra vehicles, there may be additional costs.
That depends on your provider’s terms. Some require full payment before the plan becomes active. Others offer partial cover after a set period, often after 12 months.
With Aura, if you die before all instalments are paid, your family may need to pay the remaining balance for the funeral to go ahead. This will be clearly explained when you take out your plan so there are no surprises.
Most providers offer a cooling-off period, usually around 30 days, where you can cancel for a full refund. After that, cancellation fees may apply or only part of your money may be returned.
Aura gives you more flexibility. You can cancel your plan at any time, with no admin or cancellation fees. If no services have been provided and you have paid in a lump sum or instalments of up to 24 months, any payments you’ve made will be refunded in full. This means you have the freedom to change your mind if your needs or circumstances change.
It’s always a good idea to read the terms before you commit. Aura aims to keep everything clear from the beginning.
Yes, you can. Many people choose to have both, as they serve different purposes.
A funeral plan allows you to arrange and pay for the funeral you want in advance, with costs fixed at today’s prices. Life insurance pays a lump sum to your family, which they can use however they choose.
If your goal is to make sure your funeral is arranged and paid for in full, a funeral plan may offer more certainty. Life insurance can provide broader financial support, but it does not guarantee your funeral will be fully covered.
If you’d like to know more about how to plan a cremation with Aura, our brochure is a helpful place to begin.
Our funeral plans are a helpful way to put everything in place for you or someone else.
When the time comes, our experienced team will be here to guide you through each step, offering support and advice whenever you need it.
To find out more about how our plans work, what’s included, and our story, you can request a brochure by clicking the link below. We will then send you a copy by email or First Class post—whichever you prefer.