A recent survey by Sun Life has shown the cost of dying has risen 39% in the last 10 years to £9,623.
This cost is split into 3 distinct areas –
Average cost of a basic funeral – £4,184*
Average amount spent on a send-off – £2,532*
Average amount spent on professional fees – £2,547*
The impact of COVID-19 has been felt throughout the funeral industry and it has changed the way people are viewing funerals not just from a cost point of view but in what they want from a funeral service. An increasing number of people now want a simpler service that is a celebration of life (50%) with 10% opting for a casual/laidback service.
From a cost point of view, Cremations remain a popular choice at 73% but the growth of this is being led by Direct cremations. These are low-cost cremations, average cost of £1,554 and are without any funeral service and mourners. Therefore, there’s no need to spend money on flowers, limousines or other extras that could increase the overall costs.
Whilst 62% of people who organised a funeral recently say they’ve started to think about their own, only 38% of these people have made a will – down from 46% in 2019. Just 14% have a prepaid funeral plan and 27% have put money aside. But 21% have yet to do anything! In 2020 1 in7 families found it caused them financial difficulties with 63% of the costs paid through credit card, bank loans or loans from family and friends.
With the cost of dying higher than ever before, and with COVID-19 changing how we say goodbye to our loved ones, it’s more important than ever to talk about your funeral wishes. With less than 1% knowing all their loved one’s funeral wishes, now is the time for parents and (adult) children to start talking about their preferences and to get a financial plan in place. This could be a prepaid funeral plan or life insurance. So, what’s the difference? Funeral plans are a way of pre-paying the costs and knowing that the service you’ve chosen will be paid for regardless of how much the cost may rise over the years. An Over 50’s plan is a life insurance that will pay out a lump sum, whenever you die, to pay towards funeral costs and maybe have a little left over too. The best bit is that they are so easy to arrange with no medical questions to answer and guaranteed acceptance.
Whatever your preference, you can get the help and advice that you need so why not talk to one of our friendly advisers who can guide you to the most suitable option from a wide choice of providers and take away the financial worry. You will even get a Free will so that your funeral wishes can be properly planned. Please click here to talk to an adviser and start putting your plans in place
*SunLife (2021), Cost of Dying Report, sunlife.co.uk/costofdying2021