×
Plan Now, Pay LaterSecure your plan today, don't pay until 9 January 2026. T&Cs apply, click here for details.
Two Together: Save £500!Save £500 when you purchase two funeral plans together. Call us for more details.
Written by Mitch Tapner.
19 minute read
When planning ahead, it’s natural to want clarity about your options. Many people come across SunLife when looking into funeral costs and assume they offer prepaid funeral plans – but they don’t. SunLife provides over 50s life insurance (sometimes called funeral insurance), which works differently.
In this guide, we explain the difference between life insurance and funeral plans, including what each covers, how they’re paid for, and what to consider when deciding what’s right for you. We’ll also look at how SunLife’s products work, what they actually cover, and how they compare to a fully guaranteed Aura funeral plan.
Our aim is to help you understand how each option works, from what’s included and how much it costs, to the peace of mind it provides. This way, you can decide with confidence.
No. SunLife does not offer a prepaid funeral plan. Instead, they provide life insurance (specifically over-50s or “whole of life” cover) that pays out a cash sum when you die. Your family can use this money towards funeral costs if they choose – or they can use the money elsewhere. However, it’s not the same as a funeral plan, which secures specific services and locks in prices at today’s rates.
SunLife’s over-50s life insurance policies pay a lump sum (from £500 upwards, depending on the plan).
Some policies may include a Funeral Benefit Option (offered in partnership with funeral providers), which allows the payout to be made directly to a funeral director.
The key difference is that life insurance gives money to your loved ones which can be used towards anything, such as paying off debts, donating to charity or passing down to children or grandchildren. A funeral plan, however, guarantees the cost and delivery of the funeral itself, meaning that there are no funeral arrangements to make or pay for after the plan holder has died.
Just to be clear, SunLife does not offer a prepaid funeral plan. What they provide is a type of life insurance, which works very differently.
Here’s how it works:
Important things to be aware of:
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 a SunLife over-50s insurance policy compares to an Aura prepaid funeral plan.
| Feature | Aura prepaid funeral plan | Insurance payout (SunLife) |
|---|---|---|
| Type of product | Prepaid funeral plan with services secured in advance | Life insurance or over-50s policy with a cash lump sum |
| What it covers | Funeral services such as cremation, transport and coffin, agreed in your plan | A cash sum for your family to use, for example towards a funeral or something else |
| Cost certainty | Funeral costs are locked in at today’s prices | The payout is fixed but may not keep up with inflation |
| Regulation | Regulated as a funeral plan by the FCA | Regulated as life insurance by the FCA and PRA |
| Risk of shortfall | No shortfall, services covered in full according to the plan | If used for funeral costs, life insurance may not cover everything if prices have gone up |
| Peace of mind | Everything is arranged and paid for in advance | Family must arrange the funeral and manage costs |
This shows the key difference. SunLife offers insurance, not a funeral plan. It provides flexibility but less certainty if you’re exclusively looking to provide peace of mind for funeral costs. A prepaid plan, like Aura’s, offers reassurance that the funeral you arranged will happen without extra cost.
Unlike insurance, a funeral plan gives you the option to arrange and pay for the services you want in advance. This helps protect your family from rising costs and difficult decisions later on.
With Aura, you’re in control. You choose the services that matter most to you, such as cremation, care of the person who has died, and the type of coffin. You can pay for your plan in full, or spread the cost in a way that suits you.
When the time comes, a trusted funeral director carries out the arrangements exactly as set out in your plan. There is nothing more for your loved ones to pay for the services included.
All Aura funeral plans are regulated by the Financial Conduct Authority (FCA), and customer payments are protected by the Financial Services Compensation Scheme (FSCS). The money you pay is placed into an independently managed trust and used to cover the funeral when it is 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.
*You’ll receive a clear funeral plan summary document with all key features, exclusions, and rights before you buy.*
Funeral plans are designed to cover the key elements of a funeral, helping to make sure your wishes are carried out and reducing the burden on your loved ones. While the details can vary, most plans include the essential services needed for a simple, respectful farewell.
What’s typically included?
There are some elements that are not usually covered by a standard funeral plan, and these may need to be paid for separately. These can include:
Each funeral plan provider offers different levels of service, so it’s important to read the details carefully. A good provider will explain clearly what’s included and what isn’t, so there are no unexpected costs or surprises later on.
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.
The cost of a funeral plan can vary depending on the type of service you choose, where you live, and whether you pay in full or spread the cost over time.
With Aura, an unattended direct cremation plan is a flat price of £1,695, no matter where you live. This covers all the essentials, including cremation fees, collection and care of the person who has died, a basic coffin, and return of the ashes. If you prefer to pay in instalments, Aura offers flexible monthly options over 12 to 24 months, with no added fees.
More comprehensive funeral plans, which may include a funeral service, transport, and other personal touches, usually cost more. Aura, for example, offers attended direct cremation plans from £2,595. These include a simple farewell, with a short private gathering of 15 minutes for up to 10 people. You can also arrange a larger attended service from £3,195, which includes a 40-minute service at one of our partnered crematoria, with as many attendees as the crematorium can hold.
A prepaid funeral plan allows you to agree the services and costs in advance, which can provide peace of mind and help protect against rising funeral prices. Once the plan is fully paid and active, there’s usually nothing more for your loved ones to pay for the services included.
Only you can decide whether a funeral plan is a worthwhile choice for your circumstances. But for many people, funeral plans are a practical choice. Especially if you want to take control of your wishes and spare your family the worry of arranging everything during a difficult time. A prepaid funeral plan offers both financial security and emotional reassurance.
A funeral plan is not right for everyone, but it is a popular choice if you’re looking for peace of mind and want to ease the burden on your loved ones..
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:
Prepaid funeral plans are regulated by the Financial Conduct Authority (FCA), which means there are strong protections in place to keep your money safe and ensure you’re treated fairly. This funeral plan regulation sets clear standards that all providers must follow.
For example, they’re required to keep your money secure, by placing it in a dedicated trust or through an insurance policy, so it’s there when it’s needed.
They also have to be clear and upfront about what’s included in your plan, how cancellations work, and how services will be delivered. These rules are designed to give you peace of mind and help you make informed choices.
Your money is also protected by the Financial Services Compensation Scheme (FSCS). This can provide an extra layer of reassurance, particularly if the provider were 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.*
With an Aura funeral plan, the services you’ve chosen are delivered in full, with no shortfall for those agreed services, making it a simple and secure way to pay for funeral expenses in advance.
There’s no single provider that’s right for everyone. The best funeral plan for you will depend on your personal wishes, budget, and how much involvement you’d like your family to have when the time comes.
That said, Aura is often recommended for several important reasons:
 |  | ||||
|---|---|---|---|---|---|
| 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 natural to wonder what might happen if your funeral plan provider were to stop trading in the future. The good news is that all prepaid funeral plan providers are regulated by the Financial Conduct Authority (FCA), so there are strong protections in place to keep your money safe. This is part of wider funeral plan regulation designed to give you peace of mind.
FCA-regulated providers must safeguard your money by either placing it in a secure trust or using a regulated insurance policy. These arrangements are there to make sure your money is available when it’s needed, regardless of what happens to the provider.
At Aura, customer payments are protected in a secure, independently managed trust. You can read more about how we keep your money safe.
If a provider does go out of business, there are systems in place to help. In many cases, your funeral plan may be transferred to another approved provider so the services you’ve chosen can still go ahead as planned. If that’s not possible, you will be entitled to a refund. In some cases, you may also be eligible for compensation through the Financial Services Compensation Scheme (FSCS).
These protections are there to reassure you that your money and your wishes are being carefully looked after.
Everyone’s circumstances are different. While SunLife offers life insurance, Aura provides prepaid funeral plans – so the two products work in different ways.
If your priority is to arrange and secure the details of a funeral in advance, including the costs and services, a prepaid funeral plan with Aura may be more suited to your needs. That said, only you can decide what feels right. It’s a good idea to speak with both providers and consider what matters most to you and your family before making a choice.
Here’s a quick summary on funeral plans:
If you’re not sure which option is right for you, we can help you compare funeral plans side by side. Whether you’re thinking about a direct cremation or something more traditional, we’ll guide you through your choices in a clear and compassionate 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.
No, they work very differently. Funeral insurance (like SunLife’s over-50s policy) pays out a lump sum when you die. Your family can use this money however they choose, including towards funeral costs. But it does not guarantee a funeral, and the payout might not cover everything.
A funeral plan, on the other hand, lets you arrange and pay for the funeral services you want in advance. The services are agreed upfront and carried out when the time comes, with no extra cost to your family for those included.
Not for the services covered in your plan. Once a prepaid funeral plan is fully paid and active, your chosen funeral services such as cremation, care, and the coffin are covered in full. That means there is nothing more to pay for those agreed services.
However, if your family requests anything outside of what is included, such as flowers, venue hire, or additional transport, there may be extra costs.
That depends on how your plan is set up. Some providers require that the full plan is paid before it becomes active. Others offer a level of cover after a certain period, such as after 12 months.
With Aura, if you die before completing your instalments, your family may need to pay the remaining balance for the funeral to go ahead as planned. This will be explained clearly when you buy your plan.
Most providers offer a cancellation period. You will usually have a cooling-off period, such as 30 days, where you can cancel your plan and get a full refund. After that, many providers charge a cancellation fee or only return part of your money.
With Aura, you can cancel your plan at any time, and there are no administration or cancellation fees. If no services have been provided, any money you’ve paid will be refunded. This gives you flexibility if your circumstances or wishes change.
It is still important to check the terms before you commit, but Aura makes things simple and transparent from the start.
Yes, you can. Many people choose both, as they do different things.
A funeral plan lets you arrange and pay for specific services in advance, locking in today’s prices. Life insurance, like SunLife’s over-50s cover, pays out a cash lump sum your family can use however they choose, including towards funeral costs.
If you want to secure your funeral arrangements and protect against rising prices, a funeral plan may be more suitable. Life insurance can offer 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.