Are we Prepared for Funeral Costs?

Tuesday, January 26, 2010

A new survey shows that we, as a nation, are severely under-prepared for the cost of dying. Sun Life Direct recently carried out a survey into funeral preparation and discovered that nearly half of Britons are not financially prepared for their deaths. This leaves families and dependents seriously financially exposed in the event of a loved one’s death, especially as the costs of dying are growing exponentially.

The survey reports that the typical costs paid for a funeral are between £2,500 and £3,000. In addition to this however, extra costs involved can often increase the overall prices to nearly £7,000. Moreover, the cost of a funeral is set to increase. Research suggests that the increases could rise by approximately 30 percent over the next five years and almost half of people who will pass away during this period are unlikely to have made any financial provision for their funeral costs.

Interestingly, those that are the most financially prepared for their funeral costs are those living in Scotland. This is in contrast to those living in London who are the least financially prepared even though the costs of dying in London has increased and is nearly hitting £10,000.

Out of those who have made financial preparations for funeral costs as part of their life insurance plan, nearly 60 percent cited savings and investments as their reasons for doing so. However, the recent economic instability has pointed to a trend of savings reductions, subsequently decreasing the amount in place for funeral costs. It still remains prudent when researching life cover or your current policy to ensure that the policy has provision for funeral costs. At the very least, dependents will not have to worry about funeral costs when they are already under significant emotional strain.

Denise Wells