Can I Get a Loan in the UK to Cover Unexpected Funeral Expenses?
Saying goodbye to someone you love could be extremely painful. No matter how overwhelmed you are, you cannot refuse a funeral. Everyone loves to depart from this world with due respect. Death is ineluctable; yet, many people struggle to have enough money stashed away to meet the funeral costs. The average cost of a funeral in the UK is about £4,000. The funeral is expensive because it includes various charges, such as:
Table of Contents
Funeral Costs
- The funeral director’s fees
- Transport
- Gravesite costs
- Local authority charges
- Venue hire for the wake
It is worth noting that the cost of a funeral will go up if you add flowers, food, and a solicitor to handle paperwork.
Is a direct cremation cheaper?
A direct cremation is another term for the funeral. There are two types of funeral services: burial and cremation. Burial funerals are slightly more expensive than cremations with a funeral director. A direct cremation is a process of cremating a dead body without holding a service. The Funeral Home will transport the dead body directly from home to the crematorium to cremate it. Ashes are then handed to the family.
Direct cremations are way cheaper than cremations involving a funeral service. The average cost for a direct cremation is about £1,500. If you still want to honour your loved ones, you can in your own way with the ashes.
Things to consider when planning a funeral
The funeral cost could burn a big hole in your pocket. If you are already on a shoestring budget, you would certainly want to cut back on the cost. At the time of booking funeral services, you should carefully explore your options. Do not forget that funeral service providers will pitch you for the most expensive farewell. You do not have to fall for their perfect idea of saying goodbye to your loved ones.
Here are some important facts you should keep in mind:
Choose a funeral that you can afford
There are various types of funeral services that funeral directors offer. The basic one costs the least. It is always recommended that you check the price list offered by a funeral director. The more premium the service is, the higher the cost of the funeral will be. Direct cremations are budget-friendly options. Consider then when you are cash-strapped.
Get price quotes from different funeral directors
You should always try to obtain price quotes from at least two funeral directors. It is likely that one is charging less money than the other. Do some research and ask around. Your neighbours can better tell you about affordable funeral services.
Expensive funeral does not make it better
It is generally assumed that an expensive funeral makes it better, and the deceased soul certainly rests in peace. The funeral ceremony has nothing to do with the peace of a departed soul. Bear in mind that an expensive funeral includes additional formalities used as a way to get more money out of your pocket.
Public health funeral
If you cannot afford a funeral at all, you can consider a public health funeral. Your local council will make arrangements and pay for the basic funeral.
Body donation
It is not mandatory to cremate or bury a dead body. You can donate it to a medical school or research institutions to help train doctors. However, this option is not always feasible. The circumstances of death are taken into account.
How to pay for funeral costs
It is a good idea to plan ahead for funeral costs. You should set aside money every month in bits and pieces. You should open a separate account for funeral expenses, so you do not dip into these funds. If you do not manage to stash away money for funeral expenses, you can use the following to cover the funeral costs:
Savings
These savings include the money that you withdraw to meet unexpected expenses. If you do not have a separate account to cover the cost of funeral charges, you should ensure that you have a large amount of savings. If you end up exhausting it, you will find it difficult to meet unforeseen expenses, such as a car repair.
Funeral plans
Funeral plans are the most affordable option for those who do not want to save money. This is a prepay arrangement in which you pay a fixed amount of money upfront or in regular instalments to cover the future funeral cost. The price you pay under these arrangements includes the total cost of the entire funeral service without any future price increase.
These arrangements come with customisation. For instance, you can choose whether you want a burial or a cremation. The cost depends on the plan you choose. Since you have already signed up for the future funeral costs, your kids do not have to cover any costs. Funeral plans offer peace of mind.
Government help
It is likely that you have no money set aside to cover the cost of a funeral. If that is the case, money will be paid from your estate. You can consider government help to meet funeral costs, too. However, there is an eligibility criterion that you have to meet.
You will be offered funeral expenses payment if:
- You are the partner of the deceased.
- You are the parent of a stillborn baby after 24 weeks of pregnancy.
- You are the parent or a person responsible for the deceased child under 16.
It is important that you get benefits in order to avail yourself of funeral expenses payment. Otherwise, you cannot get a funeral expense payment. The benefits you get include:
- Housing benefit
- Income support
- Income-related employment and support allowance
- Universal credit
- Pension credit
- Income-based jobseeker’s allowance
Can you get a loan to cover funeral expenses?
Most people often ask a question, “Can I borrow money for funeral arrangements in the UK?” when they do not have enough money to cover funeral expenses. The answer is you can certainly take out a loan to cover them. The loan amount could be small or big, depending on how much you need and your affordability. If a lender finds that the money you borrow is higher than your affordability, they will restrict the loan amount.
You should always ensure that you can repay the debt on time. Make sure that you compare interest rates and associated charges at the time of borrowing money. This will preclude you from borrowing money at high interest rates.
If your credit score is bad, you can still qualify for a loan, but you will end up with high interest rates. As a result, your lender will most likely restrict the loan amount. If you can avail yourself of a loan from a direct lender, you can consider life insurance and crowdfunding.
The final word
You can get a loan in the UK to cover unexpected funeral expenses. However, it is vital to prove your affordability. If you fail to prove your repayment capacity, you will be either restricted from borrowing more money or turned down. Apart from lenders, you can consider crowdfunding and life insurance.
John Milton is an experienced financial writer and personal loan expert with years of experience identifying the right category for people. He has been Chief Financial Expert at LoanChester in the UK and provides insights on the big deals of the lending institution. He is known for transforming the loan policies as per the unique needs of different borrowers. First, he focuses on what the borrowers require according to their favourable and adverse financial stances, and then he focuses on making a variety of personal loans affordable. John writes well-researched content on personal loans and also guides borrowers regarding their unique financial conditions. John holds a Ph.D. degree in banking and finance.
