Funeral Cost Options

 

Read our guide to help ensure that the financial and emotional stress faced by friends and family in the event of your death is kept to a minimum.

 

In order to save your family the trouble and strife, it's essential to make sure your life insurance policy includes enough cover to pay for your final send-off.

 

The cost of a burial is likely to be significantly more than you expect – and the price is rising

 

After all, it's not just the cost of living that's rocketing upwards. Dying is becoming increasingly expensive too.

 

Research carried out by Mintel on behalf of Sun Life Direct shows that funeral costs rose to an average of £7,248 in 2011. Worryingly, more than half the people questioned during the survey thought it would be much less. Using Comparethecoffin.com, Coffin Shop and Planning tools can help you get the best value possible.

 

It's widely predicted that the cost is going to keep rocketing upwards, so it really makes sense to plan now. The more you think about your funeral, the less your loved ones will have to when the time comes.

 

 

There are a few different options when thinking about the cost of your funeral. One is to factor it into your life insurance policy by making sure your cover includes a sufficient sum to meet the costs.

 

Of course, that's not much use if you've opted for term insurance and survive longer than your policy.

 

So you may prefer to consider a whole of life insurance policy, which would pay out an agreed amount on your death. You often see these kinds of policies advertised as “over-50s” plans and some people take them out simply to help their family with the cost of their funeral.
 

If you're not entirely sure how much cover you need or what the best insurance is for you, it's worth speaking to an impartial adviser, such as our partners Hightree.

 

 

Some people choose to buy a pre-paid funeral plan. These are often advertised as 'freezing the cost at today's prices'. You can usually buy these through a local funeral director.

 

What's included varies, depending on policy, the provider and the price. You can pay for a policy that simply covers the funeral director's costs, or one that pays for the entire thing, including a plot and the wake.

 

You may be asked to pay a one-off, up-front cost, or you may spread the cost over a number of months. Be aware that by spreading the cost you'll probably pay more overall.

 

You might assume that the state will cover some of the cost of a burial, but few people get official help.

 

Some of these plans have been heavily criticised for not covering all the expenses, leaving the family to have to make up the short-fall.

 

Make sure you ask the provider what happens if they go out of business, or if there are outstanding payments when you die. Also, if you enjoy travelling overseas ask what happens if you die abroad.

 

As always, you need to ensure you read all the small print carefully, so that you know exactly what's included and whether you're happy with that. It's worth speaking to an adviser, such as our partners at Golden Leaves.

 

 

One option is to open a savings account and make regular payments so that you have a decent lump sum to cover the costs of a funeral.

 

If this is how you want to pay for your funeral costs, it's worth thinking about holding the account jointly with someone you trust. That way, on your death, they would be able to access the money straight away.

 

Obviously you need to be confident they'd carry out your wishes because, on your death, the money would become theirs to spend as they wish.

 

 

Costs can be paid out of the deceased's estate and most banks will release the money if they are shown an itemised bill and a copy of the death certificate.

 

Alternatively, if a solicitor has been appointed then talk to them about any costs you need to charge to the estate.

 

 

You might assume that the state will cover some of the cost of a burial, but few people get official help.

 

While there is help available from the Social Fund, you'll only qualify for it if you receive certain benefits or tax credits.

 

If you do qualify for a payment, it will cover the cost of a new grave, burial fees and the cost of the plot. You may also be able to get up to £700 for costs like flowers and a funeral director's fees.

 

However, the payment won't cover the cost of any wake, so you may not want to rely on this unless you have to.

 

If your husband, wife or civil partner has died before retirement, and they had been making National Insurance payments, you may be able to claim £2,000 Bereavement Payment.

 

Ask your nearest Jobcentre Plus for a Bereavement Benefits pack.

 

Get in touch with comparethecoffice.com for more help.

 

Feel free to call 0800 690 6513