Plan your funeral now or die from burden

London: If you think the cost of living is rising at a frightening rate, consider the cost of dying. Funeral costs have risen 50 per cent in six years — that's an inflation-busting eight per cent a year.

The average burial now costs £3,168 (Dh18,891), while the average price of a cremation is £2,546, according to market researcher Mintel.

Dominic Maguire, spokesman for the National Association of Funeral Directors, believes the dramatic rise is due largely to expensive new crematorium emission controls and the cost of burial plots.

He says the price rise is also producing a boom in demand for funeral plans to limit the financial, as well as emotional, burden on families left behind.

But schemes are complex, costly, and not always free of pitfalls. Maguire says: "It is vital to understand the difference between fixed pre-paid funeral plans and funeral insurance schemes. "Pre-paid plans are typically offered by local funeral directors. They allow you to plan a tailored funeral service and you pay for it in advance, either in instalments or in a lump sum," he said.

"These upfront deals guard against future price rises and guarantee you get an individual service. They differ from insurance schemes, where customers pay monthly premiums for the rest of their life for a payout to foot a funeral bill."

Maguire says: "For those who live to a ripe old age, the amount paid for plans could be a lot less than contributions made to insurance schemes.

"And be wary of deals advertised in the Press with celebrity endorsements and free gifts. A funeral is not about gimmicks."

Concerns

Despite his concerns, such insurance options — aimed at those aged 50 or above — are popular and can offer value for money.

Dave Smith, spokesman for the funeral provision arm of the Co-operative, says insurance deals pay out the full amount as long as you live two years after taking out a policy. They do not usually require customers to have a medical.

Have you begun to plan for the cost of death duties? What are you doing to prepare? Have you considered purchasing a pre-paid funeral plan?