Funeral plans surge as people lose faith in savings

THE Co-op, the UK’s largest provider of funeral plans, saw a 21% hike in like-for-like sales last year.

The Co-operative believes that the sharp rise in the number of people making provision for their funeral reflects the loss of confidence in other types of savings and investments, traditionally relied on to cover the costs.  

The Manchester-based organisation says increasing numbers of people are choosing ‘tailor-made funeral plans, which allow them to request certain things such as the kind of music to be played or what mourners should wear.

More than 30% of all funeral plans sold last year were tailor-made plans, up from 24% in 2008. The growth in the funeral planning market in the UK means it is now estimated to be worth over £500m a year.

In the decade to 2007 the average cost of a funeral in the UK risen 84%, mainly due to the rise in disbursement costs, for example, cremation fees and costs of burial spaces, as well as higher fees for officials such as doctors and ministers – and the costs continue to rise

The Co-op says one of the key benefits of its funeral plans is that customers are protected form any future rises in costs.

Ian Mackie, managing director of funeral planning for The Co-operative, said: “In 2009 we saw a very strong start to the year, and the 21% increase on last year’s sales is extremely positive.

“Funeral plans are a very good financial forward planning vehicle as they are guaranteed against any future increases in costs.”