Funeral benefit option

What it means and how it can pay up to 10% more

  • Ease your family’s financial burden
  • Expert help to make things easier
  • Costs you nothing more
  • Quick and easy to set up
  • Why choose the Funeral Benefit option with Dignity?

    If you choose the Funeral Benefit option you'll get even more for your money with a possible extra 10%. So for every £100 of your cash lump sum that you use towards funeral costs, we could top it up to £110 (with a maximum of £1000 extra) towards your funeral when a claim is made, at no extra cost to you.

  • What is the maximum amount of Funeral Benefit I can receive?

    The maximum funeral benefit receivable is £1,000. If you chose the Funeral Benefit option, your cash lump sum will go towards funeral costs. The way the extra 10% is worked out depends on your amount of cover, and the eventual cost of your funeral. For example, if your cash lump sum is £5,000 and your funeral cost is only £3,000, the extra 10% would be calculated on the cost of the funeral (£3,000). Dignity would only charge you £2,700 (£3,000 - 10% = £2,700) and it would be taken from your Asda Over 50s Life Cover plan. The remaining £2,300 would be paid to your estate.

    If your cover is less than the cost of your funeral - the extra 10% is calculated on your amount of cover. For example if your funeral cost £3000, but your cover was £2,500 - then Dignity would add 10% extra to your cover (£2,500 = 10% = £2750) - and the remainder £250, would need to be paid by your estate. For more information please read our brochure.


  • Who provides the funeral service?

    The Funeral Benefit option is provided by Dignity.

    Dignity is one of the UK's leading provider of funeral services. Their professional funeral directors have a nationwide reputation for quality, care and attention. Every year Dignity arrange around 63,500 of the UK's funerals. They work with 680 funeral directors across the country who have been serving their local communities for generations.

    For further information on the Funeral Benefit options available to you, please read our brochure. 


  • Rising funeral costs

    The average cost of a basic funeral in the UK in September 2013 was £3,541 and this figure is estimated to increase by over £3,000* to £6,587 by 2023**. So taking out an Asda Over 50s Life Cover plan with the Funeral Benefit option can really help your loved ones with the financial strain of funeral costs.

    *Source: LV= cost of a funeral research – Consensus Research, September 2013 (based upon a sample of UK Funeral Directors).

    **This is based on a projection in the current rise of funeral costs using a yearly rate of 6.40%. Please be aware that this is only a projection based on the LV= cost of a funeral research – Consensus Research, September 2013 (therefore this figure could increase or decrease based upon market conditions).


  • Taking out the Funeral Benefit option couldn't be easier

    Simply complete the relevant section when you apply to 'charge' your cash lump sum to Dignity. 'Charge' is a term used to describe the process that allows your cash lump sum to be paid directly to Dignity and used by them towards your funeral costs.

  • What else do I need to know?

    If your funeral costs less than your cash lump sum, the difference will be given back to your loved ones. If your funeral costs more than your cash lump sum then your estate will simply pay the difference. With the Funeral Benefit option there's no set up charge, no application fee and no hidden costs. Plus, if you decide the funeral benefit option isn't right for you, you can change your mind at any time.

  • How does the Funeral Benefit work?

    1. You 'charge' your cash lump sum (the 'amount of cover') to Dignity when you apply. 

    2. Your loved ones arrange your funeral with the local Dignity Funeral Director using your cash lump sum (including the extra 10%).

    3. The Dignity Funeral Director that your family uses will be paid automatically from your cash lump sum and Dignity will add the 10% funeral benefit contribution. 

    4. If your cash lump sum is greater than the cost of the funeral then the difference will be paid into your estate by Dignity. If the cost of the funeral is greater than your cash lump sum then your estate or next of kin will simply need to pay the difference.

  • What does the term 'charge' mean?

    ’Charge’ is the term used to describe the process which allows your cash lump sum to be paid to Dignity and used towards your funeral costs.

  • Can I use any funeral director and still receive the Funeral Benefit option?

    No. To receive the Funeral Benefit (the extra possible 10%) on your cash lump sum you have to use a Dignity Funeral Director. There are over 680 Dignity Funeral Directors throughout Britain and Northern Ireland. Dignity is one of the UK's leading funeral planning organisations and each year they conduct around 63,500 funerals.

  • How much does the Funeral Benefit cost?

    At Asda we believe you deserve the best value for money and that's why choosing the Funeral Benefit option won't cost you a penny extra.

  • Should I tell my loved ones I've taken out the Funeral Benefit option?

    Yes. It is important to let your loved ones know about your intentions. If your funeral is arranged with an alternative funeral provider, the money that would have been paid to Dignity would be paid to your estate. However, the extra possible 10% would not be received and the cash lump sum paid out by your plan may be subject to inheritance tax.

  • What if I decide the Funeral Benefit option isn't right for me?

    You can change your mind at anytime by simply contacting Dignity. Your charge would be released and your Asda Over 50s Life Cover plan would continue as normal (excluding the extra possible 10%).

  • What happens to the Funeral Benefit option if I die within the first 12 months?

    Although you’re able to ‘charge’ your Asda Over 50s Life Cover plan today, you may not be entitled to your Funeral Benefit until you have held your plan for 12 months. If you were to die within 12 months of your plan starting, we may only pay out what you’ve paid in, without interest. In this instance Dignity would release the ‘charge’, and the proceeds of your plan would be paid to your estate and not to Dignity. However Dignity would still be happy to arrange your funeral and apply the equivalent 10% discount, but your next of kin would need to pay for your funeral at the time.

  • Can I ‘charge’ more than one plan to Dignity?

    Yes, if you have more than one Asda Over 50s Life Cover plan you can charge them all to Dignity and the 10% will be added to the combined cash lump sum total of the plans. But no matter how many plans you charge to Dignity the maximum amount of Funeral Benefit you can receive is capped at £1,000. If you buy more than one ASDA Over 50s Life Cover plan your Funeral Benefit of 10% will apply to all of your plans.

    However if you buy an LV= 50 Plus plan from LV= or from another brand you only get the funeral benefit on the first plan that you bought. These brands include Readers Digest, RAC, Great Deal Insurance & Standard Life. If you’re not sure if this plan will be eligible for Funeral Benefit call us on 0800 202 8106 and we’ll be happy to help.