Do you know how much funerals currently cost? The latest reports estimate the average price of a funeral is currently around £3,500. This is a figure which has been consistently rising and is expected to be around £8,000 in the next 20 years.
So what do you get for your money? Currently the biggest cost of a funeral is the director’s services which can cost up to £1,800. This should include storage of the deceased, providing the coffin, hearse and any staff needed for the day of the funeral. There are further costs for disbursement which can vary depending on whether you’re being cremated or buried. There are also costs which some people would class as extras which include: flowers, death notice and costs for a wake.
If these costs worry you then you may want to know what options are available for you and your loved ones so that you can be prepared for the inevitable. Funeral plans and over 50s life insurance are common options to prepare financially for a funeral.
A funeral plan allows you to both pay for and plan your own funeral in advance. This will give you peace of mind knowing that your funeral arrangements and costs are taken fair of and that you family and loved ones will be relieved of any extra stress at a difficult time. There are usually two payment options which are monthly payments or a one off payment. One advantage of taking out a funeral plan is that you get the funeral at today’s prices so you beat the rising funeral costs.
The other option is over 50s life insurance. These policies require no medical assessment and usually cover an amount around the cost of a funeral which makes them a great option to cover the costs of your funeral. With a range of options over 50’s life insurance can be the most affordable solution and can be flexible with options to either fully pay for or to contribute to your funeral costs.
If unprepared the options left to your family and loved ones may be to use savings or loans. Even if you have inheritance to leave to your loved ones it is likely that the funeral will be before the inheritance is received, so other provisions may be needed until the inheritance is received.