Life insurance Updated:
Rising funeral costs have highlighted the importance of protecting your family from the financial costs of dying.
Research by Sun Life Direct reveals that the cost of a basic funeral has risen by 6.2% in the last year, from £3,091 in 2011 to £3,284 in 2012, marking a shocking 71% increase since 2004.
The report also found that cremation costs and funeral directors' bills had risen; however, the total cost of dying has fallen by 1.9%, largely due to lower legal bills for estate administration.
Worryingly, the study revealed that 27% of people have no plans in place when it comes to paying for their funeral.
Commenting on the research, Editor for Investment Life & Pensions Moneyfacts, Richard Eagling, said: "Taking responsibility to ensure that you can cover you own funeral costs may sound morbid, but with costs up by 6.2% over the last year it is essential to plan ahead.
"This is particularly important as the Government's Social Fund Funeral Payment Scheme which contributes to the cost of funerals for the most vulnerable, is struggling to cope with the huge demand. Arranging the appropriate cover through an over 50s life insurance plan or a pre-paid funeral plan are two of the most popular steps to help meet funeral costs."
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