Rising funeral costs create unexpected debt
Wells Funeral Services
Millions of people have amassed unexpected debts covering the cost of a family member’s funeral.
Research polling 4,000 UK adults found 47 per cent had helped pay for a funeral after a family bereavement, setting them back an average of £2,000 – the equivalent of £49bn across the UK.
For two-fifths of those who have had to lend financial support by paying for funeral costs, it was not something they were prepared for.
As a result, nearly one-fifth had to pay for it using a credit card, while nearly one in 10 had taken out payday loans.
The research, commissioned by British Seniors Insurance Agency as part of their Funeral Costs report, also found 62 per cent had to take money from their own savings, while more than one-tenth had to borrow money from other family and friends.
Oliver Harcourt, marketing director at British Seniors Insurance Agency, said: “Death isn’t necessarily something we want to talk about.
“It can be uncomfortable and daunting, which may discourage planning ahead. Sadly, a lack of planning can result in families being left with an unexpected financial burden when our time comes to pass.
“The British Seniors Funeral Report aims to help educate people on how to better plan ahead, so to ease the impact and stress on loved ones during an already difficult time.”
The poll also found why adults have had to cover funeral expenses, with more than one-fifth saying the deceased did not have enough in their savings or any other money set aside.
More than one in 10 said any funds they did have were used to cover other things, while 18 per cent had a funeral plan in place but it did not cover everything it needed to.
People have had to support late loved ones by supplying funding for the coffin, securing the burial plot, paying for the funeral and associated venues, as well as flowers and catering.
In spite of this misfortune, more than two-fifths of people have not set any money aside or taken out life insurance for their own funeral plans.
Although those who had prepared for the future had managed to save up £3,150 for when they pass away.
The study, conducted via OnePoll, also found one in 10 do not know how much they would need, and 27 per cent were worried about the rising cost of funerals.
As many as seven in 10 agreed funerals were more expensive than five years ago, and more than one-quarter are not entirely sure how much funerals typically cost in the first place.