When we think of unavoidable expenses, that are just a part of life, we tend to think immediately of things like our mortgage or rent, water, electric and food bills.
Very few of us consider one of the biggest unavoidable costs of life – funeral expenses. Unfortunately, we all die, which means at some point your family will have to pay for a funeral, and, these days the cost of even a very basic one is significant.
According to financial experts, the average cost of a funeral is £3,456. That staggering price does not include any extras such as catering, flowers or a memorial.
The price of funerals has soared. According to analysis by a leading funeral plan provider, over the past 10 years, the average cost of a funeral, in the UK, has risen by 92%.
Unfortunately, this trend is set to continue. The demographics of the UK mean that already stretched resources like crematoriums are set to be kept under pressure.
Because the costs of materials, labour, administration, graves, cremations and equipment are highly likely to continue to rise, the cost of funerals can really only continue to increase.
Now we know that this is worrying. Fortunately, there are ways to minimise the effect that the rising cost of funerals will have on your family.
Pay for your funeral in advance
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People are becoming more aware of rising funeral costs. As a result, many of those that can afford to do so are regularly saving for family funerals.
This is certainly better than ignoring the issue, but there are problems with this approach. The fact that the cost of funerals are rising so fast, and that interest rates are so low means that families have to keep topping up those saving to keep pace with rising costs.
If they do not, when the time comes, they can easily find themselves without enough money to cover the full cost of the funeral. In addition, they still end up paying the full cost of the funeral, at the time it is held.
For most families, a far better approach is to invest in a funeral plan. Doing so makes it possible to pay for your funeral or that of other family members in advance.
As a result, you end up paying today’s prices rather than the far higher costs of the future. This is important as some news reports suggest that the cost of dying far outstrips the current rate of inflation.
If you choose the right company, you can buy a basic funeral for around £2,800. Given the fact that by 2023 a UK funeral is expected to cost £6,000 you could potentially be saving your family as much as £3,200 that is a huge cost saving.
Therefore, it is really worth looking at the kind of funeral prepayment plans on offer. Plans differ from company to company and package to package which is helpful when it comes to finding the plan that is right for your needs.
Of course, you need to do your own research and choose the plan that is right for you. If you want more information about doing so, follow some independent advice from organisations like the Money Advice Service.
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