No one likes to think about death, but end-of-life planning can help your family when the time comes. If you have plans in place, your loved ones won’t have to make difficult decisions or deal with extra stress when they’re already grieving. With plans in place, you can make sure your family is in a good financial position. This guide explains the different costs you might face.
Why is end-of-life planning important?
Planning ahead can make a huge difference to those you leave behind. It helps to:
- Reduce stress and the pressure of making decisions on your loved ones.
- Make sure your wishes for your care, assets, and funeral are followed.
- Avoid family disputes and legal problems.
- Give you clarity and can protect your estate.
How planning ahead can help your family
End-of-life planning can help reduce stress. Making decisions in advance means your family won’t have to make rushed choices at a difficult time.
Having a funding plan in place can cover funeral and related costs, which can help your family to deal with end of life expenses. It may also provide comfort to know your affairs are settled.
What are the key parts of end-of-life planning?
There are many things to think about when you’re planning for the end of your life. The main things to consider are:
- Writing a will and estate plan, including inheritance tax considerations.
- Choosing your funeral arrangements.
- Planning for healthcare decisions.
- Getting the right financial products to cover expenses.
- Telling loved ones your wishes.
What are end-of-life expenses?
You can’t predict the exact costs of death. However, careful financial planning can help protect the people you love.
The main things that contribute to end-of-life costs are:
- Funeral costs.
- Medical bills or legal fees.
- Smaller expenses, such as death certificates or obituaries.
There are many other things to think about, such as clearing out belongings, telling friends and family, and arranging care for any pets or dependants. Death can be expensive and comes with a lot of admin work, which can also add to the cost.
Understanding funeral costs
Funerals are one of the most expensive end-of-life costs. In recent years, funeral costs have been rising. The price can change depending on your wishes. Some factors that can affect the cost are:
- Type of funeral service (this might depend on your religion or faith).
- Church or funeral director fees.
- Venues and catering after the funeral.
- Burial or cremation fees.
- Cost of a casket or urn.
- Price of a grave plot.
- Extra costs to make the funeral more personal, such as flowers, music, or the number of people attending.
- Maintaining a grave.
What are the different types of funeral arrangements?
When you’re choosing your funeral arrangements, you should think about the cost, where the funeral will be, and your beliefs.
There are various funeral arrangements you can choose from. You might want a traditional burial, a cremation, or a natural burial. A direct cremation is a simpler option where there is no service. You will also need to decide whether you want a religious service or not.
It’s important to talk about your wishes with your family beforehand. You should also write them down clearly. Having the right financial plan in place before you die is the best way to make sure your funeral is how you want it to be.
Funeral costs can add up quickly, and with prices always rising, they’re becoming harder to afford. Your loved ones would have to pay for and plan a funeral, as well as think about ongoing costs, such as a gravestone.
How much does a funeral cost in the UK?
The average cost of a basic funeral in the UK was £3,740 in 2024. But the price can change depending on where you live. Although it’s a scary thought, putting plans in place and having all the information you need can make the situation easier.
To get more of an idea of how much your funeral might cost, use the Co-op funeral calculator to find out what the price of a send-off near you could add up to.
Many people don’t know what to do when someone dies. Often, there isn’t much time to arrange a funeral, let alone get finances in order. This can lead to people using their savings or investments to pay for the costs.
Ways to pay for a funeral
Talking about end-of-life planning can be difficult, but it’s an important conversation to have with family and friends. This can help prevent them from having to deal with money worries on top of grief.
Here are some ways you can pay for funeral costs and other end-of-life expenses.
Use an Over 50s Life Insurance plan
An Over 50s Life Insurance plan gives your family a fixed, tax-free cash lump sum when you die. This can be used to help pay for funeral costs and other expenses.
If you are aged between 50 and 80 and live in the UK, your application will be approved by Shepherds Friendly without any health questions. You can choose a monthly payment that suits your budget, starting from £10. The more you pay each month, the more cover you get.
Set up a pre-paid funeral plan
You can arrange a pre-paid funeral plan with a funeral director or funeral care company. This allows you to pay for your funeral in advance.
It’s important to check the plan covers the total cost of the funeral you want. If it does not, your loved ones may need to pay extra. Some funeral directors might offer a payment plan, but they often ask for some money upfront.
Pay with savings
You can leave money in your bank account or savings to pay for your funeral. However, banks normally freeze individual accounts once they are told of the customer’s death.
To get access to the money, your family member or friend will usually need help from the executor or administrator of the estate which can lead to delays. Sometimes, the bank may release some funds for funeral costs if a copy of the death certificate or an invoice for the funeral costs is provided. These types of complications can be avoided however, if you hold a joint account, say with a partner or spouse.
Claim funeral costs from your estate
Your family, friends, or the council can pay for your funeral and then claim the costs back from your estate. If you have other debts, funeral costs are usually paid first. However, some secured debts, such as a mortgage, may be paid before funeral costs.
Other ways to cover costs
Other financial products like ISAs and investment accounts can also help your family cover costs. They may also be able to apply for government benefits or grants to help with funeral costs if they are on a low income.
You can find more information about our Over 50s Life Insurance and ISAs on the website.
The role of life insurance in end-of-life expenses
Life insurance plays an important part of the planning process. It can help cover end-of-life expenses and support your family when you’re gone.
The Shepherds Friendly Over 50s Life Insurance policy provides a guaranteed tax-free cash lump sum to your loved ones when you die. There are no medical questions, so you’re guaranteed to be accepted.
Adding life insurance to your financial plan can help your loved ones manage these costs without extra financial pressure. The amount you pay each month for your plan will never increase and your cover will not be reduced, regardless of your future health.
Life insurance vs funeral plans
A pre-paid funeral plan covers the cost of the funeral itself. It doesn’t provide extra money for your family to use for other expenses.
Read our comparison of life insurance and funeral plans to find out more.
Beyond funerals
When we think about end-of-life costs, funerals are usually the first thing that comes to mind. But the financial impact of losing a loved one goes much further than that.
Your family might face other costs, such as:
- Outstanding debts you left behind.
- Legal fees for handling your will and estate.
- The costs of caring for any dependants, whether they are children or pets.
Planning for these things can make all the difference after you’re gone. Outstanding debts and legal fees can quickly become a problem, especially if your family isn’t expecting them. And dependants and pets need ongoing care and support, which can be expensive.
Adding life insurance to your financial plan can be a lifeline for your family. It’s about making sure your loved ones can pay for your funeral, manage any debts or legal fees, and take care of dependants or pets.
Planning ahead not only helps to funeral expenses but can protect your family’s overall well-being and finances after you’re gone.
How to prepare your end-of-life finances
Putting plans in place for the worst helps your loved ones face fewer problems when you pass away. Below are some things you can do to help your family.
Have the right legal documents
These are the most important legal documents to have in place for end-of-life planning:
- Will: A legal document that sets out how your assets will be shared after you die. Keeping an up to date will is important as solicitors will follow it.
- Lasting power of attorney: A legal document that lets you choose someone to make decisions on your behalf. For example, your property, finances, health, or welfare.
- Advance decision (living will): A legal document that lets you refuse certain medical treatments in the future.
- Funeral plan contract: If you have a pre-paid funeral plan, this document will have all the details.
Decide and share your funeral or burial choices
Telling your family your funeral or burial choices and the costs involved can stop them from having to make difficult decisions for you. It also makes sure your wishes are respected.
If you’ve already made funeral plans, be sure to let your family know. Keeping a written record of your wishes with your will is a good idea.
Look into life insurance or pre-planning
Having a life insurance plan can give your family the financial help they need if you die. It’s a good way of protecting them.
Shepherds Friendly offers an award-winning over 50s plan. Just make sure they know that you have a plan, so they’re able to claim.
Talk to family about your wishes
Take the time to understand what will happen to your finances if you pass away. It’s important to know what happens with your belongings and finances including investments, bank accounts, properties, and other assets.
It could be helpful to share this information with those closest to you. But talking about your end-of-life wishes can be a sensitive subject.
To make it easier:
- Choose the right time and place. Find a time when you and your family can talk without being interrupted.
- Be clear and direct. Explain why you want to have this conversation.
- Write everything down. Keep all your documents in one place and tell a family member where they are.
- Appoint an executor. Choose someone you trust to manage your estate and make sure your wishes are followed.
In summary
Planning and having open conversations can make things easier for those you leave behind.
- Plan for costs after death that go beyond funeral expenses, such as debts, legal fees, and care for dependants or pets.
- Talk about your wishes with family and friends, even if the topic is difficult.
- Keep your will updated so it reflects your current wishes, as solicitors will follow it.
- Consider life insurance to help reduce financial pressure on your loved ones after your death.
- Make sure your family knows about any life insurance policies you have so they can access the benefits.
- Prioritise open communication to make things easier for those you leave behind.
Important: No advice has been provided by Shepherds Friendly. If you are unsure about any aspect of end of life planning we recommend getting in touch with a financial adviser, who will be happy to take you through the options available. Should you consult a financial adviser there could be a cost involved and this should be confirmed beforehand.
