Almost three in four older people do not have over-50s life insurance, which equates to 20.2 million people, according to research from financial services organisation OneFamily.
More than two-fifths (44%) of those with over-50s life insurance purchased the product for funeral cover.
However, just 19% of over 50-year-olds said their funeral could be fully or partially paid for by life insurance.
More than eight million over-50s had not put any money aside to specifically cover funeral costs, with 13% admitting they did not know how their funeral would be paid for, 14% leaving their family to use money from the sale of their assets, and 3% relying on loved ones to pay.
With costs continuing to increase, one in ten (9%) said they would choose not to have a funeral.
For those that did have over-50s insurance, 12% said no medical review was a priority when choosing a provider, while almost a third (28%) said the biggest consideration was cost.
Jackie Davies, head of customer service and direct sales at OneFamily, said: “With concerns over the cost-of-living crisis continuing, it’s not surprising people have reservations around finding the spare cash for over 50s life cover.
“Understandably, one in five don’t want to think about getting older and funeral arrangements, but this will only push the worry onto their loved ones when the day comes.
“Our premiums start from just £10 per month with no medical needed, and our funeral funding means the pay out can be sent directly to the chosen funeral provider.
“This leaves families with one less thing to worry about, as well as peace of mind that their loved one’s funeral is taken care of.”
