How to find the right funeral

Escalating prices, exploitative sales tactics and the surge in popularity of funeral plans… it’s time to take a practical look at this sensitive issue

We run you through the tricky topic

However good we are at comparing prices and finding the best deal in all aspects of our lives, few of us shop around when it comes to finding the right funeral… for obvious reasons. But as we all know, arranging a funeral is financially and emotionally draining. In the past 15 years, prices have more than doubled, with the average funeral now costing a staggering £4,300*. Cremation costs have risen 25% and burials by 23% in the last five years.

As the situation stands, 12% of us are facing ‘funeral poverty’

after a loved one dies, according to Royal London insurance group, with an average debt of £1,744. Comparing prices can make a huge difference to how much you pay, with typical savings of more than £1,000, but 84% of those arranging a funeral don’t do this**. It’s little wonder, too, that demand for funeral plans that allow consumers to fix the cost in advance has increased nearly 200% since 2006, as more of us try to plan for this huge end of life expense and spare our loved ones. Last year alone, 177,000 of these plans were sold, costing on average £2,500-£5,000 each***.

‘In the past 15 years, prices have more than doubled’

WHAT YOUR MONEY PAYS FOR

Most funeral bills are made up of two parts, with the funeral director’s fee typically accounting for half. Their service usually includes everything from making all the arrangements to removing and storing the body, conducting the funeral and supplying a hearse. Some funeral companies may offer ‘packages’ that include the price of a coffin, but in most cases this is extra.

The second part of the bill covers ‘third-party fees’. This includes the cremation or burial costs, which are usually set by the local authority and the funeral director has no control over.

Other costs include flowers, family cars and order of service sheets, which can add around £2,000 to the bill.

POSTCODE LOTTERY

Prices can vary according to where the funeral is being held. A funeral including a burial in London can cost nearly £12,000, according to Royal London’s National Funeral Cost Index, while a cremation can cost around £3,500. By comparison, a similar funeral in Belfast would cost £3,000 including burial costs, or £2,800 for a cremation.

You can find the average costs in your area using the funeral costs tracker from One Family (onefamily.com/talkingfinance/finance/funeral-calculator)

LOW-COST FUNERALS

Most funeral directors offer lower cost funeral options, including ‘simple funeral’ packages, or can arrange a direct cremation or funeral without service. The Co-op’s Simple Funeral costs a fixed fee of £1,895 or £1,675 in Scotland (includes the funeral director’s fee, a coffin and hearse, however third-party fees like burial and cremation costs are still in addition to this). It’s worth knowing that with a Simple Funeral, you can’t choose the day or time for the burial or cremation, although you can still have a service at the graveside or in the crematorium. If you are the partner, a relative or friend of the deceased and are on a low income, you can get a funeral payment from the Government. It includes help towards the cost of cremation or burial, death certificates, up to £700 towards funeral costs, and more. Check your eligibility at gov.uk/funeral-payments.

‘Costs can vary according to where the funeral is held’