More people than ever are getting funeral plan cover

by | May 16, 2016 | Finance, News

Ten years ago, very few people opted for funeral plan insurance,usually known as a ‘funeral plan’. But that’s changed dramaticallyand now over half a million people in the UK have opted for funeral plan insurance.

What is funeral plan insurance and why do you need it? When you pass away, your loved ones will want to organise a funeral. Funeral Plan insurance covers the cost of the funeral related expenses. And the costs are skyrocketing.

Today, even a modest funeral can cost at least £3,456. But that’s before costs for memorials, flowers and catering which can be over £2,000. In addition, estate administration costs can run well over £2,160. Funeral and related expenses can, therefore, exceed £8,000 and one high street bank estimates that funeral expenses will exceed £24,000 by 2020. The government will not pay funeral expenses.

In some cases, life insurance and money saved can cover funeral expenses. But if the person who has passed away has not prepared for the cost, then relatives must pay the expenses.