Funerals are a difficult and emotional time for anyone who has lost a loved one. However, they can also be incredibly expensive, which in a cost-of-living crisis can make it even more challenging for people to afford. From the burial fees to the wake, the expenses can quickly add up. So what happens if you simply cannot afford to pay for a funeral?
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In this guide, we'll explain:
The cost of a funeral and how to pay for it
What affects funeral costs
Who's typically responsible for paying for a funeral
What happens if your family/loved ones cannot pay for your funeral
Ways to save money of your funeral costs
How life insurance can help with funeral costs
How much does a funeral cost?
According to SunLife's Cost of Dying Report 2024, the average cost of a basic funeral in the UK is £4,141 - up by 4.7% on last year. They also state that the cost of dying (the overall cost of a funeral, including extras such as flowers and catering) is now £9,658 (up 5%).
What affects the cost of a funeral?
There are a number of factors that will affect funeral costs, such as:
The burial type
There are 4 main types of burials - Burial, Cremation, Direct Cremation, Direct burial. By direct, it means to be buried/cremated without a ceremony or service, usually with no mourners present.
Sunlife's report found that in 2023, 53% of funerals were cremations, whilst 27% opted for a burial.
Cremations are usually cheaper than burials, as there is no need for things like a burial plot or headstone.
The funeral director
The funeral director is in charge of organising and coordinating all aspects of your funeral. They are responsible for arranging transportation, preparing the body for viewing, and overseeing the ceremony itself.
They also handle paperwork, such as obtaining death certificates and permits for burial or cremation. Some directors may charge more than others for their services, so it really depends on their rate. But it's worth shopping around to compare.
No laws require you to hire a funeral director, though it will make the process much easier.
Location
Where you live can also impact the cost of your funeral, as regions naturally have different costs of living. Sunlife's report found that the average funeral cost in London is £5,171, where as in North West England, it's considerably less at £3,802.
Extras
No funeral would be complete without extras, most notably a wake or after-party. A time where your loved ones can get together and celebrate your life. These extras can add up in cost, so it's important to budget for them as well. Such expenses can include:
Hearse for transporting your coffin
Limousine for transporting your family/loved ones
Hiring a venue
Catering
Flower arrangements
Memorial or headstone
Newspaper announcements
Not everyone wants a large funeral with all the add-ons, instead you might prefer a smaller, more intimate affair. In theory, this could help to reduce costs for your family/loved ones.
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Who pays for a funeral?
In most cases, it's usually the immediate family that pays for the funeral. But it could also be paid for by a close family member or friend.
How do you pay for a funeral?
While you may be worried about the staggering cost of a funeral, the good news is you have plenty of options available. To cover such costs, you could:
Buy a funeral plan: These plans allow you to pay in advance for your funeral, either in full or through instalments. By doing this, you can ensure that any costs are covered and alleviate the burden on your family or loved ones.
Take out a life insurance policy: This can help ensure that your loved ones will receive a lump sum payment upon your death. The money can then be used to cover the expenses associated with your funeral and other arrangements.
Use funds from your estate: This could be any savings or investments you have, or assets such as property that can be sold to cover the cost of your funeral.
If you have a will, the money will be left to the executor of your estate, who can use it to pay for your funeral expenses. If you do not have a will, the responsibility may fall on your next of kin and they will need to apply for a Grant of Probate.
Your employer may also offer some assistance with funeral costs, such as a death in service benefit. Another option is to get a funeral expenses payment.
What is a Funeral Expenses Payment?
This is a government scheme that can help to cover the cost of a funeral for those on certain benefits. It's designed to help people with low-income pay for a funeral. It can be used to cover things like burial or cremation fees, travel costs, and up to £1,000 for other expenses such as director’s fees or wakes, or a coffin.
To be eligible, you or your partner must receive one support, such as:
Universal Credit
Income Support
Housing Benefit
Pension Credit
Child Tax Credit
Income-based Jobseeker’s Allowance
You can apply for a funeral expenses paymentdirectly through the Government.
What if my family can't afford my funeral?
Without plans in place, it's possible your family/loved ones may struggle to cover the cost of your funeral.
This could be because:
They don't have the money to cover the costs themselves.
You have nothing to leave behind to help cover expenses.
There are no relatives/friends to arrange or pay for the funeral.
In this case, the local council or hospital can arrange a public health funeral (also known as paupers funerals). This will be a basic, no-frills funeral paid for by the local council. It will usually be a cremation, with a short service, which people can attend.
The time and date will be chosen by the council, and will not include any extras like cars, wakes or newspaper notices.
Over 50s life insurance
If you're aged 50 and over, then an over 50s life plan could be a worthy investment as you reach your golden years. These policies typically offer guaranteed acceptance, meaning that you can secure cover without the need for a medical exam or answering health questions.
There's usually a waiting period between the policy starting and a potential pay-out. This could be anywhere from 12 months to 24 months, depending on the provider.
With our over 50s cover, premiums can start at as low as £7 a month. As long as you continue to make payments, a cash lump sum should payout upon your death. This money could be used to cover your funeral expenses, so that your loved ones are not burdened with the cost.
Please note that cover amounts are lower for Over 50s products compared to term life insurance or whole life cover. To ensure it is the right policy for you, please call our specialist team on 01392 436193 (Monday - Thursday 9am - 5.30pm, Friday 9am - 5pm).
How long does it take for life insurance to pay out?
Most insurers aim to pay out a life insurance claim as soon as possible but typically, it can take between 30-60 days of receiving all necessary documentation. In certain cases it could be longer, depending on the circumstances surrounding the death.
For more information, see: How does my family get my life insurance payout?
How can I save on funeral costs?
If paying for your funeral is a genuine concern, then there are a number of ways you can cut costs:
- Opt for a cremation, this can save you from having to pay for burial fees. You can choose to have your ashes scattered in a place that is meaningful to you and your family.
- Consider a direct cremation or burial, which are more affordable options compared to traditional funerals.
- Have the wake at home, rather than at a funeral home, to save on venue costs.
- Do your own catering, instead of hiring a catering service, to save on food expenses.
- Scale down the funeral service, by choosing a simpler coffin, reducing the number of flowers or opting for a smaller venue.
What's important is that you address these issues sooner, rather than later. No matter your age, it's never too early to start planning for the future and ensuring that your loved ones are not burdened with the cost of your funeral. Whether it's through government assistance or life insurance, there are options available to help you prepare for the inevitable.
