Funerals can be expensive and these days many people are choosing to ‘pay now, die later’ to spread the cost. But does buying a funeral plan save you money?

At the time of writing this, the Money Advice Service says that a funeral arranged in the usual way costs on average, £3,702. But they note that this cost can differ quite a bit, depending on where you live and the type of funeral arrangements that are made. In London for example, the price of funeral is almost double the national average.

If you choose to be buried, it will cost more, the average cost of a burial funeral is now £4,110 and the average cost of a cremation funeral is now £3,294 according to a report published in 2015 by Royal London.

The bad news is that these costs represent a continuation of a long-term trend that has seen funeral costs rise above inflation – in the last three decades, the average annual increase in funeral costs has been 6.1%, compared to an average annual inflation rate of just 4.0%, according to Royal London.

Looking forward, many factors suggest that, if left unresolved, costs will continue to rise.

Following a survey of costs, undertaken by YouGov in 2015, it has been conservatively estimated that if funeral costs continue to rise at the same rate we have seen over the past 12 years, by 2020 the average funeral will cost £4,620.

At this rate, in another twenty years, a basic funeral could cost well over £12,000!

Pay now, die later

This concept is simple and could be a solution to the escalating costs of a funeral that are estimated. You pay a company, or an insurer now to take care of your funeral in the future, so your family doesn’t have to cover the costs or worry about the arrangements when you die. You either pay in affordable, manageable instalments or in one payment – whatever suits.

Of course there are things that you’ll need to think about when arranging your funeral. And it does seem a little weird, planning for something that you won’t experience yourself, but it will be undoubtedly easier for you to make choices now, than it will be for your family to decide when they are dealing with loss. The good thing is by sorting everything out today you fix the cost of your funeral now and pay at today’s prices – plus you get to choose how you want to leave this world! You get to choose your coffin, flowers, music and you can even select a preferred funeral director.

So paying now, dying later can relieve families of financial burden and help to ensure you get the send-off that you want. However, funeral plans are only good value if you know what you’re paying for, so it may be a good idea to speak to someone that can explain the different options available to you.

Essential Funeral Plans offer a range of prepaid funeral plans that have supported hundreds of thousands of people in making provision for their funeral. Providing quality of service and value for money to ensure that your loved ones will receive professional care and support at a difficult time.

Call 0800 612 8004 or click to find out more about Essential Funeral Plans >>