Switching funeral insurance is not like switching your mobile provider: what you’ve paid in over the years can carry a value that is lost when you switch. You can always switch, but seniority does not transfer automatically. The key is to know that beforehand, do it in the right order and look carefully at each contract.
Can you switch funeral insurance without losing what you’ve paid?
You can always switch company, but there is an important catch: there is no rule that obliges the new insurer to recognise the seniority you built up with the old one. Whether it does, and how much, is the new company’s decision and depends on the terms of your current policy and of the new one. That’s why, before deciding anything, the first step is to read your existing contract calmly.
It helps to understand why it matters: funeral insurance is a long contract, and your seniority and the waiting periods you’ve already served can affect what you pay and from when you are covered. It weighs more with a level premium and less with a natural one.
In one sentence: you can always switch, but seniority does not travel with you automatically: before deciding, find out what the new contract recognises, if anything.
- ✓You can always switch, but seniority does not transfer automatically.
- ✓What is recognised is up to the new insurer, under its own policy terms.
- ✓First you review the contract you have; then you decide.
Seniority and waiting periods: what really matters
Two ideas rule this switch. The first is recognition of seniority: whether the new contract takes into account how long you’ve been insured under the old one. The second is waiting periods already served: the initial period during which certain cover is not yet fully active, and which you passed long ago on your current policy.
If the new contract doesn’t recognise what you’ve already served — which can happen — you could find yourself back in a period where the benefit is limited. If it does, the switch is much smoother. What happens in each case depends on the policy and the plan, so I won’t give you deadlines here: I confirm them in writing before you decide.
If you’d like a refresher on what a waiting period is, I explain how to avoid surprises
- ✓Seniority: no obligation for the new contract to count the time you’ve already been insured.
- ✓Waiting periods served: not starting the initial period all over again.
- ✓Written confirmation before you cancel anything.
What to check in your current contract and in the new one
Even if the reason for switching is price, the premium is only part of the story. With the contract you already have and the one you’re being offered side by side, look at least at the sum insured, the way you pay, the services included and who is insured under each.
The way you pay matters a lot: natural, level and mixed premiums make the cost evolve differently over the years, so a lower first premium does not necessarily mean a cheaper contract in the long run. It is also common for a new contract’s premium to be calculated on your current age, so it may not match what you pay today. If your current policy has a level premium, take extra care: the extra you paid in the early years is usually what does not carry over when you switch. I explain the difference between natural and level
Look at the services too: the Comprehensive Funeral Cover adds to the funeral service benefits you use while alive, such as a doctor by video call, a dentist, travel assistance or legal advice, always on the terms of each policy. You can see every plan on the Funeral Insurance page .
- ✓Sum insured that is enough for your area.
- ✓Way of paying: natural, level or mixed.
- ✓Living benefits included or not in your current contract.
- ✓Who is insured under each policy.
The right order to switch without a gap in cover
If you decide to switch, the order matters more than anything else. The golden rule: don’t cancel your current insurance until you’re clear, in writing, about the terms of the new one and the date it starts covering you. If you cancel first, you could be without cover, or with reduced cover, for a few days.
The deadlines and the way to give notice of cancellation are set out in the terms of your current policy and can vary from one to another. That’s why I always start by asking for a copy of your existing contract: with it in front of me, I explain what the new one would recognise and what to bear in mind.
- ✓1. Gather your policy and your latest receipt.
- ✓2. Review seniority, waiting periods and sum insured.
- ✓3. Get the terms of the new contract confirmed in writing.
- ✓4. Only then, cancel the old one.
If the problem is the premium, you may not need to switch
Sometimes the reason for switching isn’t the company but the fact that the premium has become a burden. Before moving anything, it’s worth knowing that if you’re struggling to pay there is almost always room to adjust the way you pay or the sum insured. Stopping payment without telling anyone is not a good idea: the policy can be suspended or cancelled after the non-payment period set out in its terms, and you would lose your cover.
If that’s you, write to me before it gets to that point. I’m an exclusive insurance agent: I’ll explain clearly what I would propose and we’ll review your current contract together, so you can decide with both in front of you.
- ✓Adjust the way you pay or the sum insured.
- ✓Tell me before you stop paying.
- ✓Decide with both contracts in front of you.