Posted on 15 June, 2017 at 9:50

The reason funeral insurance is available is so people can receive a cash sum of money to provide immediate help to pay their funeral expenses. So, it stands to reason that the nominated beneficiary is someone trustworthy and close to you. And ideally it should be someone you expect will live longer than you do.

As a general rule for a joint policy the beneficiary is named as the spouse. If one partner passes away then the money can be paid the the spouse which is often the most obvious person to take the main responsibilty for the funeral and associated costs. As the beneficiary can be altered at any time it then simply means that if one partner passes then the remaining insured person would then nominate another person (as their spouse would be around then).

The only potential issue with this is that if both insured persons die at the same time then the money would have to be paid to the estates which would delay things. However, this is typically only likely in the event of an accident so it is unlikely. If this is something that worries you then you would nominate another person, maybe an adult son or daughter to prevent this being an issue.

For a single applicant the beneficiary is normally an adult son or daughter or in the event there is no family then a trusted friend.

In some instances we get a family member, say an adult son or daugther arranging cover for their parent(s). In this instance they often also take responsibility for being the nominated beneficiary.