A report by YouGov SixthSense has found that only 11% of Britons either currently hold a funeral insurance policy, and that a further 26% answered that they did not hold a policy at present, but are contemplating obtaining one in the future.
The death of a friend or loved one can bring unexpected financial costs, which can in turn compound the emotional impact of the loss. A number of insurance companies offer products which will cover the cost of a funeral and any related costs, but there remains a large core (48% of respondents) that holds no funeral insurance policy and would not consider buying one. Looking at the recent rise in funeral prices, our eagerness to invest in funeral policies is perhaps completely understandable.
A recent report released by the National Association of Funeral Directors found the average price of a standard grave has risen 42% in the past three years, with an average increase of 48% and 67% for cremation and interring respectively. Since 2003 there has been a cap on social fund grants, which with funeral costs rising far more quickly than inflation, has resulted in a £500 shortfall which leaves little wonder as to why 37% of the public either own or are considering investing in a funeral policy.