Credit, Collections & Insolvency News
Only 66% of people have made provisions towards their funeral costs before they passed away, and 17% of families in 2021 reported notable financial concerns when it came to making up the deficit.
Of those who had to make up the shortfall, over half had to borrow money to cover the cost. 27% borrowed from friends and relatives, 22% used credit cards, and 10% took out a personal loan.
Even though the price for a funeral has dropped since 2020, 6% of people sold some of their personal belongings to cover the costs.
In fact, one in five were still surprised at the staggering costs of a funeral, with 25% claiming that the overall cost of the funeral was more than they expected it to be – explaining why so many people struggle to afford it when the time comes.
In a bid to keep the costs down where possible, 16% of people picked a cheaper coffin and 16% spent less money on flowers for the service.
Mark Screeton, CEO at SunLife said “It’s important to remember that there are still ways to manage the costs of a funeral, and it’s encouraging to see that so many are taking steps to do this. As difficult as it may seem, encouraging conversations and planning for funerals with family members ahead of time will save even more grief and stress further down the line.”
How people made up funeral costs
| 1 | Savings and investments | 38% |
| 2 | Borrowed money from a friend or relative | 27% |
| 3 | Credit card | 22% |
| 4 | Paid the funeral director in instalments | 17% |
| 5 | Sold belongings | 16% |
| 6 | Borrowed money from a loan provider | 10% |
| 7 | Applied for subsidy from government or local authority | 7% |
| 8 | Other | 3% |
| 9 | Can’t remember | 2% |
