Funeral expenses can be covered by life insurance policies and any money that has been saved. However many people who have passed away have not prepared for the cost, leaving relatives to pay the expenses.
Increasing funeral expenses means that the cost of dying will inevitably affect families not only emotional but will, unfortunately, affect families financially as funeral prices continue to rise. This is becoming more of an issue as people are, on average, living longer and neglect the idea of putting money aside to help when they pass away.
The high funeral costs, which are set to increase, are causing many people to opt for funeral insurance. Here’s why…
“In fact funerals are one of the fastest rising fixed costs in the UK and in the past year alone have risen 5.5% – which is more than double the rate of pensions, inflation and earnings growth!*”
Graham Jones, director at SunLife
Even a modest funeral today can cost at least £3,500. This is before costs for memorials, flowers and catering, which can be over £2,000. As well as estate administration costs that can run well over £2,160. When you add all of this up it means that funeral and related expenses can now exceed £8,000. The government will not pay funeral expenses.
While death continues to be a taboo subject, it’s important that families discuss funeral arrangements so that they are prepared when the time comes. Otherwise, bereaved parties could end up paying over the odds for a funeral the deceased might not even have wanted.
* According to SunLife’s Cost of Dying 2016 report.