People who are anxious to ensure they leave enough money behind when they die in order to pay for their own funeral are behind a rise in sales of pre-paid funeral plans, with the Co-operative, the UK's largest provider of funeral plans, seeing a 21 per cent increase in like-for-like sales in 2009.
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 funeral costs.
The Co-operative has also seen a real shift towards people wishing to arrange a more personalised funeral, with increasing sales of Tailor-made Plans.
With a Tailor-made Plan, people can discuss every aspect of the funeral arrangements in as much (or as little) detail as they like, adding in items such as flowers for example, and special wishes such as music to be played, readings or "no black" to be worn.
Thirty one per cent of all Plans sold by The Co-operative are now Tailor-made Plans, an increase of seven per cent since 2008.
The growth in the funeral planning market in the UK means it is now estimated to be worth over £500 million a year and The Co-operative boasts it is the largest provider.
In the 10 years to 2007, the Co-op says the average cost of a funeral in the UK almost doubled (increasing by 84 per cent). The increases were 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-operative says one of the key benefits of its funeral plans is they are guaranteed to cover the costs of the agreed funeral arrangements, regardless of any future rise in costs. And this includes the costs of disbursements.
The Co-operative offers a broad range of pre-planned options. Of these, the most popular set funeral plans cost around £2,700, with the benefit of set plans being that they are very simple and quick to organise.
The Co-operative also provides a number of ways to cover the cost - including 12 months interest free and fixed monthly payments from £19 a month.
"The fact that more people are arranging Tailor-made Plans with us really shows that they want to take the time to talk through all the options,” said Ian Mackie, Managing Director of Funeral Planning for The Co-operative.
“It's a wish to personalise and have everything just right so that their funeral is special to them.
"Funeral plans are a very good financial forward planning vehicle as they are guaranteed against any future increases in costs."
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