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Funeral prices hit record high – 4 ways to plan ahead
Two thirds of people make provisions to pay for their funeral before they pass away
The cost of a simple funeral has reached a record high of £4,280, according to a report by SunLife.
The insurer says the total 'cost of dying', which includes professional fees for administering an estate, a simple funeral service and optional extras such as a wake, has risen to £9,800.
With funeral costs rising, planning in advance can ease the financial burden on your family. Here, we round up four ways to plan ahead, including the costs involved and how to pay for it.
1. Research the type of funeral you want
While the average funeral cost in 2024 was £4,280, prices vary depending on the type of funeral you choose.
A burial is the most expensive option at £5,200, costing £1,200 more than a cremation, on average.
For a more affordable alternative, a direct funeral can significantly cut costs. These no-frills services forgo ceremonies, with the deceased taken straight to the crematorium, typically in a plain coffin.
Traditional cremation remains the most popular option, with 55% of people choosing it, but direct cremations are a popular alternative, with 20% opting for this cheaper choice.
The table below shows the average funeral costs in 2024 and their increase compared to the previous year:
| Type of funeral | 2024 cost | 2023 cost | Percentage change |
|---|---|---|---|
| Burial | £5,200 | £5,080 | +2.4% |
| Cremation | £4,000 | £3,800 | +4.9% |
| Direct cremation | £1,600 | £1,500 | +6.7% |
| Direct burial* | £1,600 | £1,660 | -7.8% |
*Direct burial cost doesn't include third-party fees such as burial plot.
Source: SunLife
2. Don't forget the extras
It’s not only the funeral that costs money. Flowers, venue hire and catering are all extras that can increase the price.
According to the report, flowers and order sheets remain the most common expenses, with around 44% of people opting for the most expensive optional extra: a memorial service.
Here’s a breakdown of the average costs for these extras:
- Memorial service: £1,040
- Catering: £530
- Limo hire: £430
- Venue hire: £350
- Flowers: £220
- Order sheets: £120
- Funeral notice: £90
- Death notice: £80
You may need to consider whether you want all of these extras, if cost is a concern. SunLife found that 17% of those looking to cut back on expenses spent less on flowers, while 15% opted for a home wake to save money.
Others saved by using social media to share details of the funeral, instead of opting for newspaper notices.
- Find out more: funeral costs explained
3. Decide how to pay for a funeral
Some people put money aside while they're still alive.
According to SunLife's report, 68% of people made provisions for their own funeral before they passed away, but only 56% of those had enough to cover the whole cost.
Below are the most common ways in which people set money aside for their own funeral, according to SunLife.
Prepaid funeral plan
Prepaid funeral plans remained the most popular way to pay for a funeral in 2024, with 28% of people choosing this option.
Prepaid plans can help families avoid financial stress by locking in today’s prices and exempting the funds from inheritance tax. When buying the plan, you can nominate a loved one for the firm to contact.
Funeral plans can be 'guaranteed,' covering third-party costs, or 'contribution,' where families might need to cover shortfalls.
Since July 2022, all prepaid funeral providers must be regulated by the Financial Conduct Authority (FCA). This means that if something happens to your provider, you’ll be able to get your money back.
When choosing a plan, payment methods matter; some instalment options carry significant fees. Opting for a 0% interest credit card can offer a more affordable solution for those paying over time, with some offering up to 22 months interest-free.
- Find out more: funeral plans explained
Savings, investments and current accounts
A quarter of people (25%) used savings and investments to set aside funds for funeral costs, while 19% relied on money in their current account.
You can leave money in your bank or savings account to cover your funeral, but your family may have difficulty accessing these funds when you die. This is because banks and building societies typically freeze accounts once they're informed of the account holder’s death.
However, banks usually release funds with an itemised bill and a death certificate. If this process isn't timely, families may need to pay upfront and be reimbursed after probate.
- Find out more: grant of probate explained
Life insurance
Life insurance is a product that enables you to leave money for your family when you die. A lump sum is paid out to your beneficiaries upon your passing, which can help replace lost income, pay off debts and cover funeral costs.
Life insurance was the least popular way to pay for a funeral, with 18% choosing this option. Of those, 9% opted for over-50s life insurance, while another 9% chose regular life insurance plans (excluding over-50s) to help cover funeral costs.
Over-50s life insurance, which pays out a fixed lump sum when you die, is often marketed as a way to help your family cover funeral expenses.
Unlike regular life insurance, there’s no medical screening involved; only your age and smoking status are checked. You choose your monthly premium, which can start from around £5. However, there’s a good chance you’ll pay more in premiums than the policy will eventually pay out.
- Find out more: best life insurance policies 2025
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4. Tell loved ones your wishes
You might have very specific requests for your funeral, but the report found that 18% of people didn’t know any of their loved one’s funeral wishes.
51% didn’t know whether their loved one preferred a burial or cremation. As burials can be considerably more expensive, it’s a good idea to have these conversations with your family while you’re alive.
To avoid confusion or potential disagreements, it’s important to put your wishes in writing.
A Letter of Wishes, which accompanies your will, can be a helpful way to do this. However, it’s not legally binding and shouldn't be witnessed when signed and dated, to prevent it from being confused with a will.
- Find out more: how should you pay for your funeral?
