Funeral costs jump to all-time high
Funeral costs have soared to an all-time high of £4,285, leaving many people wondering how they’ll be able to afford to give their loved one the send-off they wanted.
According to SunLife’s latest annual Cost Of Dying Report 2025, the cost of a simple attended funeral has risen by 3.5% over the past year. A spokesman for SunLife said: “We saw a dip in attended funeral costs during the pandemic, but they’ve since been on the rise again – now reaching £4,285 and overtaking 2020’s record price. Meanwhile, the cost of a direct cremation has also increased year on year by almost 7%, to £1,597. Both have risen above the rate of inflation over the same period.”
Once optional extras are factored in, such as a wake, funeral notice and order sheets, along with any professional fees, the total cost of dying jumps to more than double this at £9,797, up 1.4% compared to last year.
Given these steep costs, many people want to look at ways they can ensure their funeral is paid for in advance, with 68% making provisions specifically for this purpose before they pass away.
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Ways to cover funeral costs
If you’re lucky enough to have sufficient savings and investments available, earmarking some of these for funeral costs may be worth considering. Other popular options include pre-paid funeral plans or over-50s life insurance.
With a pre-paid funeral plan, as the name suggests, you pay for your funeral in advance. One of the main benefits of doing this is that you’ll be buying it at today’s prices, meaning that if funeral costs have gone up by the time you die, you will have made a saving overall for your estate. However, the reverse is also true, so if costs fall, you may have paid over the odds, although prices are unlikely to drop over the long-term.
If you decide to go for over-50s life insurance instead, you’ll receive a lump sum when you die, typically ranging between £1,000 and £10,000, which your loved ones can put towards your funeral costs. You don’t have to have any medical checks to take out this sort of cover, and as you pay premiums until you die, a payout is guaranteed. The main downside of this type of insurance is that there’s a risk you might end up paying out far more in premiums than the policy will provide you with when you die.
Speak to a specialist about setting up a Lasting Power of Attorney
Write your Will online with Which? and receive 20% off
Do you qualify for the Funeral Expenses Payment?
You might be able to claim a benefit called the Funeral Expenses Payment if you’re arranging a funeral for a partner, close friend or relative and you get certain benefits or tax credits. This won’t usually be enough to cover all funeral costs, but it should help. You’ll have to pay this money back to the government if you receive any money from the estate of the person who’s died. You can find out more about this payment and how to claim at GOV.UK.