By Diaspora Insurance News
The ‘Cost of Dying’ in the United Kingdom (UK) has hit an all-time high of £9,797, highlighting the need for insurance cover to ensure families do not endure the double trauma of mourning loved ones while begging for money to cover funeral expenses.
Family and friends are also increasingly reporting financial concerns after having to step-in and help fund funeral costs with some left struggling to pay rent or bills and having to cut back on essential items such as food.
UK insurer, SunLife, recently released its 2025 Cost of Dying report which shows that, after dipping during the Covid pandemic, end-of-life costs have since been on the rise.
“Both the price of a simple attended funeral and the total cost of dying are now at an all-time high in the UK,” said CEO Mark Screeton.
The report added, “2024 saw the total cost of dying go up by 1.4% to £9,797. While professional fees have fallen, increases in both funeral and send-off costs mean we’re now paying an average of £139 more than we were in 2023.”
The cost of dying is broken down as professional fees for estate administration, a simple funeral service and optional services like a reception or wake.
According to the report, a simple funeral now costs £4,285, while professional fees can be as much as £2,652 with average send-off rose +3.4% to £2,861 taking the total to £9,797.
In terms of costs by area, increases were recorded in seven of the UK’s ten regions with London still the most expensive at £5,449, up 5.4% followed by Southeast and the East of England where costs increased 6.5% to £4.943.
The report also shows that cremations are increasingly becoming the preferred option, noting that “this may, in part, be down to cost-of-living pressures”.
“The number of direct cremations swelled during the pandemic – out of necessity – but they’ve grown and remained popular even in the years after COVID-19 restrictions. This may in part be down to cost-of-living pressures,” the report reads.
“At 55%, a simple attended cremation with a service is the most popular type of funeral, increasing by 2% on the previous year,” the report reads.
“In contrast, the percentage of funerals that are burials has gone down by 2% to 25%. 1 in 5 (20%) people describe the funeral they organised as a direct cremation – the same as the year before.”
“A direct cremation needn’t take place in isolation though. 89% of organisers say they held a small gathering, a wake, a memorial – or a combination of these – beforehand or afterwards.”
Families and friends are also reporting financial concerns after having to step-in and make up funeral costs.
“18% (-2% from 2023) of families experience notable financial concerns when paying for a funeral. On average, they have to find almost £2,371 to cover the costs.
“Most of them find the money by delving into their savings and investments (33%), using a credit card (24%), or borrowing from a friend or relative (23%).
“The number of people selling belongings to cover the cost has risen again, now at 19%.”
The cost-of-living crisis over much of 2024 had also had an impact on how people organise funerals.
“A third (33%) of people say the cost-of-living crisis impacted how they organised and/or paid for the funeral,” the report explains.
“And for more than 1 in 5 (22%), paying for a funeral affects their standard of living. 6% struggle to pay essential bills or rent, and 8% have to cut back on essential items such as food.
“Of those who experience notable financial difficulties when paying for the funeral, 3 in 4 (75%) report an impact to their mental health. And 60% see an impact to their physical health.”
