The annual Cost of Dying report, published this month by SunLife, reveals that the cost of a basic funeral has risen for the 14th year in a row and now stands at £4,078, an increase of 4.7% in just one year and a huge rise of 112% since they started tracking funeral pricing in 2004.

In the past decade, funeral costs have risen more than 70%, that’s more than three and a half times the increase in weekly wages, house prices and petrol prices.

If wages had risen in line with funeral costs, the average weekly wage would be £714 today, but, it is £503.

If house prices had risen at the same rate as funeral costs, the average house would cost almost £100,000 more than it does today.

Finding the money to pay for funeral costs
According to the report, 58% of people have made specific financial provision to pay for their funeral before they die – 29% of those surveyed have bought a prepaid funeral plan and 15% had taken out life insurance to cover the costs. However, not everyone making financial provision had made sufficient cover and for one in nine families, finding the money to pay for their loved ones’ funeral caused them financial problems;

• 27% had to borrow money from a friend or relative
• 23% had to put the costs onto a credit card
• 13% had to get a loan
• 12% worked out an instalment plan with the funeral director
• 12% had to sell belongings to cover the cost

Dean Lamble, SunLife's Managing Director, commented, “Our research shows that while the majority of us are making financial provision for our funerals, we are not leaving enough to cover the full cost, causing financial stress for those left to cover the shortfall”.

If you make the decision to make financial preparations for your funeral, a number of options become available to you. At Essential Insurance, we can help you understand the differences between life insurance policies and funeral plans and help you decide what is best for you.

If you want your loved ones to have a significant pay out when you pass away, then life insurance could be the option for you. Life insurance policies are not allocated to a funeral director, but those you leave behind will receive a lump sum they can use to do something important with.

If you want to take responsibility for the costs of a funeral and make sure your family have very little to do when the time comes, then a funeral plan could be the option for you. Because funeral plans are agreements made between you and a funeral director, there is no need to burden loved ones with emotional responsibility. Plus, the funeral is paid for in advance so there are no financial concerns either – and you could fix the cost of your funeral now and pay at today’s prices!

For further information about your options and advice that’s tailored to your specific needs and wishes, you can contact one of our experts on 0800 612 8005 – we’re here to help you be financially prepared for the future.