Rising cost of funerals highlights the need for protection
23rd October, 2015
A study by Life and Pensions Group Royal London has found that the average cost of a funeral in the UK has now reached £3,700, marking a near 4% increase since 2014. This is despite inflation in the past year staying relatively flat, increasing the shortfall between the average provisions made to cover expenses and the actual costs to £2,449.
The mutual also highlighted that cremation costs have risen more quickly than burials. The once more affordable option increased 4.2% to £3,294, whilst burials have risen 3.7% to £4,110. One of the more startling contrasts was that of location. Some areas such as Greenock in Scotland have costs of just under £3,000, whereas in a town such as Beckenham in Kent, the average funeral cost has reached over £7,000.
The report from Royal London revealed that more than one in ten people currently struggle with funeral expenses, with the average debt as a result of the costs just over £1,300. Collectively, this equates to £98.9m across the UK, highlighting the worrying protection gap between covering future financial expenses in advance and possibly falling into arrears when the time comes.
This highlights a growing need to consider Life Assurance or Whole of Life policies to deliver peace of mind to loved ones on the event of death. Over 50s plans are also suitable to ensure cover for funeral costs, especially for those with existing medical problems. These policies are ideal to cover funeral expenses so that your loved ones are free of the financial worry that accompanies the arrangements. To find out more about planning for the future, visit our quotes page or contact us directly.