How much does a funeral cost?

As with anything, the cost will be dependent on a variety of factors and will essentially boil down to how much time you can afford for planning and how much you are willing to spend.

One of the main elements is exactly what type of funeral you want to have. According to life insurance provider SunLife, the average cremation is around £1,000 cheaper than the average burial, which depending on what the deceased requested could make the cost far more manageable.

While the manner in which the deceased is handled is of course a large factor in the overall cost, there are other expenses which you will need to consider.

Several key factors, including professional fees,  affect the total cost of a funeral:

Location:

Location plays a big role in the overall funeral costs in Britain, including burial fees, which tend to be higher in certain areas . Generally, funerals costs are generally higher in larger cities and the south of England, particularly London, where higher living costs and limited space drive up prices.

Burial plots, in particular, can be extremely costly in urban areas due to land shortages, with cremation often being the more affordable option.

Funeral directors, crematorium fees, and low cost venue hire are also typically priced higher in cities compared to smaller towns or rural locations, where services tend to be more competitively priced.

In contrast, funerals held in more rural areas or in the north of England, Scotland, or Wales are often considerably cheaper. Costs for things like transport, memorials, and even professional services like florists or caterers can be much lower outside of major urban centres.

Some families choose to hold funerals away from cities to help reduce the financial burden, though they must also factor in travel and accommodation costs for mourners if needed.

Funeral Director:

The choice of funeral director can have a significant impact on the overall cost of a funeral in Britain.

Funeral directors provide a wide range of services, from organising the ceremony to handling paperwork, transportation, and care of the deceased, and their fees can vary greatly depending on the company and the level of service you choose.

Larger, well-known funeral companies may charge more for their services compared to smaller, independent firms, although this is not always the case.

Some funeral directors offer simple funerals or direct funeral packages at a lower cost, while others may provide more elaborate arrangements that can quickly add up in price.

It’s important to ask for a clear, itemised quote and compare options to ensure you are getting the service you want at a price you are comfortable with.

Capacity:

The capacity of the venue where the funeral is held can also affect the overall cost, including venue hire for larger gatherings . Larger venues that can accommodate more mourners often charge higher fees for hire, especially if they are in high demand or located in busy areas.

If a large number of guests are expected, additional party costs may also arise for extra seating, larger floral displays, catering, and printed service sheets.

On the other hand, smaller, more intimate services can often be arranged at a lower cost, as smaller venues are typically cheaper to hire and require fewer extras.

When planning a funeral, it’s important to consider how many people are likely to attend, as the size of the gathering can have a noticeable impact on the final expenses.

When someone with a life insurance policy passes away, their beneficiaries (usually family members) receive a lump sum pay out, which can also be used to cover the cost of a memorial for their loved one's ashes . This money can be used however they wish, including to pay for funeral expenses such as:

• Funeral director’s fees
• Burial or cremation costs
• A coffin or urn
• Flowers, service, and transport
• Wake or memorial expenses

Some people in the UK take out a specific type of policy called over 50s cover or funeral cover. These are often designed to leave enough money to cover funeral costs without medical checks. In addition to this, there are also pre-paid funeral plans, which let you arrange and pay for your funeral in advance, often locking in today’s prices

Key points to know:

• Life insurance pay outs can take a few weeks after the death is registered and the claim is made.
• Some insurers offer an advance payment (sometimes called a funeral benefit) to help cover funeral costs more quickly.
• Beneficiaries are responsible for organising the funeral and paying the bills.

In the UK there are 3 main options for funeral insurance:

Over 50s life insurance:

This is a popular choice. You pay a monthly premium, and when you die, your family gets a lump sum to help cover funeral costs. It’s guaranteed acceptance for UK residents aged 50–80, with no medical questions.

Funeral insurance (through a funeral plan):

Some funeral plans are backed by insurance. You pay monthly or in a lump sum, and the plan guarantees to cover your funeral services (like the funeral director, coffin, and sometimes the cremation or burial fees). It’s not technically called "funeral insurance", but it works in a similar way.

Life insurance with funeral benefit option:

Some standard life insurance policies let you add on a funeral benefit. This means a portion of the pay out is released early to help with funeral costs, even before the full claim is processed.