Legal & General Protection

November 01, 2012 05:06 ET

Latest Report Indicates 10-Year Rise in Funeral Costs

Average funeral costs have risen by 7% annually since 2001, according to latest industry findings.

LONDON, UNITED KINGDOM--(Marketwire - Nov. 1, 2012) - The average price of a funeral will currently cost a family £3,368, according to recently published research. The report, which summarised life insurance coverage across a 10-year period ending in 2011, claims funeral costs have consistently increased by 7% annually since 2001, putting further strain on personal finances.

The research carried out by Mintel, a market research firm, found that back in 2006, a funeral, on average, cost a family £2,225.

Based on the 7% yearly average increase, experts project funeral costs could creep up to £4,757 by 2016, meaning the average funeral cost could jump by a full £2,532 within a 10-year period.

The report reveals the extent to which families currently struggle to pay for a loved one's funeral - based on mounting costs attributed with death, such as probate, headstone and even flowers. With families struggling to meet higher costs, many are now deciding to take out loans from providers to cover the payments or even sell their personal belongings.

Following the findings, industry leaders and life insurance experts are urging families to consider pre-planning a loved one's funeral before costs become unmanageable. With many leading insurers promoting affordable life insurance packages, including financial products like over 50's insurance and a variety of funeral plans, customers will find setting up such assurances are not as difficult as first perceived.

However as the cost of living increases - in accordance with the rate of inflation - families will need to do thorough research before taking out a policy/insurance package; especially at a time when incomes are being squeezed.

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