South West now the most expensive area for a funeral outside of London
The overall cost of dying in the UK has more than doubled since 2007
Arranging a funeral, paying professional fees and ensuring your loved one has a meaningful send-off has never been more expensive. If the current trend continues, then the average cost of dying could reach £10,441 by 2023.
It goes without saying that the most expensive part of passing away is holding a funeral.
The national average cost of a basic funeral in the UK is £4,271, a massive increase of 122.5% since 2004.
The South West of England is the most expensive place to hold a funeral outside of London. Here the average funeral cost is almost 10% higher than the national average.
Unless you have sufficient savings to cover the total cost of your funeral, then it may be a good time to reflect on who the costs will befall to in the event of your death.
Will they have a difficult time coming up with the necessary funds?
Why are funeral prices increasing?
A number of factors have contributed to this huge increase in funeral costs, and why it’s unlikely to slow down.
Common reasons include; cuts to local authority funding (leading to a rise in crematoria costs), the increase in funeral directors’ fees, increased cost of fuel, and the lack of space for new graves (particularly in London).
In the South West, the cost of cremation is 16.6% higher than the national average, with Exeter being the most expensive city for this.
Life insurance vs a funeral plan
So you may be wondering how you can secure the current cost of today’s funeral, and avoid the alarming rates of future funeral costs?
The answer could involve taking out a life insurance policy or a funeral plan. Both have their benefits and depending on your circumstances, one option may be more suitable to you than the other.
A funeral plan allows you to prepay the cost of your funeral at today’s current rate, with payment made directly to the funeral provider.
You also have the option to pay in one lump sum or by payment plan.
There is usually a choice of either paying interest-free monthly payments for 12 months (plus a deposit) or spreading the cost for 2 to 25 years into more manageable monthly chunks.
Some funeral plans do not cover third-party costs, such as the memorial, the flowers, or limo hire.
These elements of a send-off make up to almost 25% of the overall cost of dying.
It is worth keeping an eye out for plans that do offer cover for third-party costs, such as Co-op funeral care. Particularly if you are expecting quite an elaborative send-off.
Life insurance protection can be used in any which way your loved ones wish, including paying for your funeral.
The benefit of using life insurance to cover your funeral is that your family could receive a much higher pay out, which could help with third-party costs and/or any unexpected bills.
Life insurance premiums are based on factors such as your age, health and sum assured (pay out amount).
If you are of poor health or you are over a certain age, you may struggle to secure affordable cover.
An over 50s life insurance plan does not require any medical information on application and the sum assured can be up to £25,000, a fair amount to cover a funeral.
Although any life insurance policy will not protect you or your family from the increased cost of dying in the future.
The average cost of just a basic funeral in 5 years’ time (in 2023) is predicted to be £5,120. And by 2036, a funeral could cost £12,749 (likely to be even higher in the South West).
If you have a life insurance policy already in place, you could also choose to take out a funeral plan alongside.
A sure-fire way to achieve the best price for a funeral now, and protect your loved ones from a heavy funeral bill in the future.
Compare quotes for the best deal
It is important to compare quotes when finding the right cover, at the very best price.
You can do this yourself online, use a comparison website or an FCA registered broker.
Most people can secure cover for just a few pounds a week and this selfless investment could be invaluable in protecting your loved ones from future financial strain.
Sources:
https://www.sunlife.co.uk/siteassets/documents/cost-of-dying/cost-of-dying-report-2018.pdf
https://www.thelondoneconomic.com/lifestyle/health/why-are-funeral-costs-rising-in-the-uk/23/08/
