The cost of dying has increased dramatically since the year 2000. According to research conducted by insurer American Life, it now costs around £3,307 to bury your loved one compared with £2,048 in 2000. The costs of cremations have also increased by over 60 per cent to £1,954 over the same period of time.
On top of this, one company that deals with pre-pay funeral plans claims that the United Kingdom we are getting a worse deal than our European cousins. In order to address this, the company has introduced a plan that includes an insurance savings, so that your family should not have to pay any unexpected charges when you die. This works on the basis of: you select how long you wish the plan to be for, and whether you wish to be buried or cremated and a premium is agreed.
Our view
A proportion of the premium will be paid to a life term insurance provider, and as your savings increase, the amount that you pay the provider will decrease. The snag is if inflation increases dramatically, you will then be asked to pay an increase in premium to make sure your plan was on target to meet the cost of your funeral.
This means there is guarantee that the plan and what you have paid will actually cover the costs involved in burying you.