Posted by Tony O’Shea, Funeral Planning & Life Insurance Expert
Funeral costs have risen by two-thirds according to the Competitions and Markets Authority (CMA). The funeral market is estimated to be worth an estimated £2 billion per year with the rising costs consistently outstripping inflation.
According to a funeral markets study published by the CMA over the past 14 years, the cost of a funeral has increased by 6% annually, twice the rate of inflation over this period. As a result, many people are now looking into funeral plans as a way to beat inflation and make the cost of a funeral more manageable.
According to the CMA, the average cost of a funeral in 2018 was £4,300. In addition to this, costs such as a memorial, death & funeral notices, flowers and catering can add another £2,000 to the cost of a funeral; bringing the total cost of a funeral to £6,300!
The rising costs of a funeral are placing an unbearable burden on families and it is estimated that one in five people are now struggling to afford to pay for a loved one's funeral.
Due to continued rising costs and concerns that funerals were becoming unaffordable, on 1st June 2018, the CMA launched an initial market review of the funeral sector. Their interim report and consultation announced that it is proposing a full scale market investigation.
The CMA will be investigating whether or not funeral services have transparent and reasonable pricing so that bereaved families can get a fair deal.
One of the findings within the interim report suggests that funeral suppliers might be exploiting those who arrange and purchase a funeral at the “time of need” by charging higher prices. Due to their vulnerability and the exceptional circumstances under which they are making the purchase, the interim report states that “often the bereaved are not able to exercise some of the most basic commercial judgements that customers typically display in more normal circumstances.”
As an alternative to purchasing a funeral plan at the time of the bereavement, many individuals are opting to purchase prepaid funeral plans.
A funeral plan allows you to plan and purchase your funeral in advance.
A funeral plan usually covers the cost of the Funeral Director. The Funeral Director will arrange the funeral for the bereaved family and will be responsible for:
There are different levels of funeral plan cover, depending on your requirements.
It is important to note, that there are additional costs to cover when arranging a funeral such as flowers and catering for the wake. It is important you take time to review exactly what is included in any funeral plan you are considering purchasing.
There are many benefits to purchasing a funeral plan.
By purchasing a funeral plan, you are able to make informed decisions by taking more time to review the market in detail. It also ensures that you can compare funeral plan suppliers in order to secure the best deal that suits you.
With a funeral plan, not only do you get to plan your own funeral you get to protect your family from the rising cost of funerals.
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If you are considering a funeral plan, you might also be interested in Will writing.
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In the meantime, why not head over to our Wills section? It can provide you details regarding types of Wills and what to include in a Will.