The costs of funerals is rising
According to research by Sun Life published in January 2018, funerals are one of the fastest rising fixed costs in the UK. In the past year alone this cost has risen 4.7%.
Dying is expensive. The average cost of a funeral now stands at £6,006.
Friends and family have to cover over a third of these costs, equating to £2,222 each. One in nine families covering this £2,222 bill, say it causes them financial concerns.
More than a quarter (27%) had to borrow money from a friend or relative. One in 10 had to get a loan, and almost a quarter had to use a credit card.
How the costs Add up?
The report also reveals that funeral plans for over 50s and the overall cost of dying, ie the cost of a funeral, the amount spent on the send-off (discretionary costs including the memorial, flowers etc) and the cost of hiring professionals to administer the estate, has also risen in the past year, from £8,802 to £8,905.
The cost of a funeral differs across the country
Funeral costs can vary significantly from region to region. Unsurprisingly, London retains the title as the most expensive place to die when it comes to the average cost of a funeral.
At the other end of the scale is Northern Ireland, Scotland and areas in the West Country.
An Uncomfortable Subject
A YouGov survey of 30,000 people for the Co-op found that 8 in 10 haven’t saved anything towards a funeral.
91% of British have thought about their own mortality, with 35% thinking about it once a week or more.
The top reasons for people considering their mortality are the death of a family member (28%), researching a milestone age (22%) and a medical diagnosis for someone they know (17%).
Failure to properly deal with death has a knock on impact for the bereaved, affecting mental health and also triggering financial hardship. (Health Insurance Daily – Aug 2018)
This year, Sun Life research found that 58% of people had made arrangements to pay for their funeral before they died. However, this is a fall on last year’s figure of 62%. Worrying figures indeed. At Future Proof, we have access to a range of straightforward and affordable products. Often whole of life insurance, term life policies and Guaranteed over 50’s plans can prove to be better value and more affordable that a funeral plan.
Whilst you are welcome to get a quote on line we would strongly recommend you talk to one of our advisers. Your adviser will take into account your medical history – an on-line quote won’t. They will also will make sure any quote provided to you with is appropriate to your situation, as well as your budget!
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Source: Health Insurance and Protection Daily Jan 2018
Royal London National Funeral Cost Index 2017