Funerals costs are creating debt for families.
Failing to plan for the inevitable funeral costs is creating major debt issues for many familes when the cash just isn’t available at the right time when a family member dies.
A survey by Royal London shows that funeral debt in the UK has reached £142,000,000. And that at a time when prepaid funeral plan sales are booming. But the rapidly rising cost of funerals is only going to make things worse in future, for families who haven’t planned.
Why not contact us and set up a Family Funeral Plan – one which can be used by any member of the family who dies, rather than – as most are – being restricted to just one person. We think that is a great way of improving things. But on with the report from Royal London.
The National Funeral Cost Index: average funeral costs £3,551.
More worryingly a massive 109,000 people have been caught out and ended up with an average debt is £1,305. In terms of timing, the combination of grief and debt is awful.
YouGov (commission by Royal London) surveyed just under 2000 people who had arranged a funeral in the last 5 years. 46% said it cost more than expected. Around one in five said they had problems paying. The Social Fund contribution to funeral costs is minimal.
Despite this, most were determined to give their loved one a “good send off.” Surprisingly only just over one in ten of these economised on the funeral. Significantly more that one in three spent their own savings to help pay. Almost three in ten borrowed from family or friends. A scary 20% went into debt typically using a credit card or a loan.
The National Funeral Cost Index is to repeated annually by Royal London and the Institute of Cemetery and Crematorium Management which represents professionals working in burial and cremation throughout the UK.
The ICCM study highlights how funerals are polarising society: those who can afford and those who can’t afford the cost plus those who pay in advance (which needn’t be too expensive. It also shows funeral costs differ dramatically ranging from £2,859 for a cremation in Belfast, to whopping £6,899 for a burial in Beckenham, Kent.
But as we would say, a large proportion of those people could have benefitted from a prepaid funeral plan, whether purchased by them or another family member.