Over 40 per cent of people believe their families would be unable to cover the cost of their funeral without getting into debt, unless they had quick access to cash, according to Engage Mutual.
An independent survey of 2,000 people UK adults found that over three-quarters had made no financial provision for their funeral, while two thirds underestimated the cost of a burial at £4,000 or lower - the UK average is £4,690.
Furthermore, more than half of those surveyed underestimated the cost of an average UK cremation at £3,000 or lower - the UK average is now £3,239.
When the costs were revealed, one in five said it was much more than they thought, with over 16 per cent saying they were “shocked” by how expensive funerals are.
Engage noted that probate takes around three months for a simple estate, whilst the average length is six months, and for more complicated estates where property is involved, or inheritance tax, it could take a year or more.
Yet nearly a quarter thought their family would have access to money from their estate within a month of their death, with five per cent believing they would have instant access.
The majority (56 per cent) had not made a will, which can lengthen the probate process even further.
The family society’s sales director Stuart Tragheim said that the research made clear when there’s a death in the family, people need access to money quickly, “which they can have through our nominated beneficiary option”.
He added: “It shows how important protection is and how fast payment benefits such as the nominated beneficiary option, can be a valuable safety net.”
peter.walker@ft.com
