The rising costs of funerals

You’ve spent all your life taking care of your family, and the last thing you want is to leave them with a financial burden. So it makes sense to think ahead and consider how they would pay for your funeral.

As the chart below shows, the cost of funerals goes up each year. In 2006 the average cost was £2,225*, in 2013 this had gone up to £3,594**, and if the average cost continues to rise at the same rate, by 2018 it could be £4,931.***

AA Over 50s Life Insurance, provided by Legal & General, will provide a cash sum if you die after one year. The cash sum won't necessarily cover the full cost of a funeral, but will provide a contribution towards it. Or the money could help with other outstanding bills or costs.

When you choose your premium, it's important to remember that the cash sum provided by the fixed life insurance plan does not increase with inflation, so its future buying power will be reduced.

Alternatively, the increasing plan is designed to help protect your cash sum against inflation. If you choose the increasing plan, your premiums will be reviewed each year, along with your cash sum, and will increase to help protect against inflation. For more information, please refer to the increasing plan page.

The figures below show how rising prices of funerals can affect your cover. The costs of a funeral are based on averages, so may be more or less than these amounts depending on where you live and the funeral company you use.

Depending on your circumstances, you or a partner may be eligible for state support in paying funeral costs. Visit for more information.

Rising funeral costs graph

* ONS / Mintel: Funerals - UK - January 2007
** Funeral costs research carried out by Matter Communications, Sept 2013
*** 2018 forecast based on the average increase of 6.53% each year between 2000 and 2013.

You can get a quick quote using our calculator and if you aren't sure whether to choose a fixed or increasing life insurance plan, you could use our comparison table to help you decide.