Quick stats
£6,000 Average amount it costs someone in the UK to die, including burial, flowers, wake, death notices etc. (sources: insurer Axa Sun Life Direct and market research group Mintel)
70% Proportion of UK funerals that use cremation rather than burial. On average, cremation is £460 cheaper than burial (£2,160 rather than £2,620)
Simple saver
Donate your body to medical science to save on funeral bills. Your family won't get any payment and, if your body is rejected, they will have to foot the funeral costs. But if your corpse does fit the bill and you request eventual cremation (after up to three years), the medical school will pay. You have to put your donation request in writing and sign it in the presence of at least one witness. Find out more by contacting the Human Tissue Authority at hta.gov.uk
Advanced saving tips
1. Arrange for a funeral outside London
Dying in London is pricey: it costs £2,000 more than the national average. While we're at it, dying abroad can also sharply increase funeral expenses because of the cost of bringing the body home - one very good reason to have travel insurance to cover this. Contact the National Association of Funeral Directors (nafd.org.uk) or the National Society of Allied and Independent Funeral Directors (saif.org.uk) for details.
2. Take out a pre-paid funeral plan
The cost of funerals tends to outpace inflation, so think about taking out a funeral plan that will cover the bills within certain restrictions (major providers include Cooperative Funeral Services and Help The Aged). You can also make your wishes clear, such as the type of coffin or service you want.
Check for any limits on what's included in the package - headstones, burial plot, flowers and so on might be excluded. Think of requesting cash donations to charities rather than flowers - a longer-lasting method of remembering you, and tax-efficient for the donor! And do make sure you have some life insurance cover so your loved ones don't struggle to meet the funeral bills.
3. Check if your family qualifies for state help
If your family can't afford to pay for a funeral and they receive certain benefits, there is help available. In 2005-06 the state paid £45m to help cover the costs of 35,000 funerals, although it usually reclaims the money from the deceased's estate once it is settled. The Funeral Payment covers a burial plot and the burial or cremation fee. You will get up to £700 to cover most of the rest of the costs of the funeral: find a claim form at direct.gov.uk, although this must be claimed within three months of the funeral. See tinyurl.com/4fq7kg for more information.
A Bereavement Payment of £2,000 may also be paid, unless you're over state pension age. To be eligible, your spouse or civil partner must have paid enough National Insurance Contributions while they were working, and the payment must be claimed within 12 months of death. See tinyurl.com/3nn9ux for more.
4. Write the right will
A will ensures that only those you want to inherit will receive your money - and will help keep it out of the hands of the taxman.
At present, inheritance tax is charged at 40% on anything you leave behind above £312,000 (£624,000 for couples who are married or in civil partnerships). Take expert advice on this: you can reduce this hit on your heirs while you're still with them by giving money away - so long as you last seven years beyond the date of the gift. You can give away £3,000 each year tax-free, or as many £250 gifts as you like to separate individuals. Die before the seven years is up, though, and the gifts you made will be subject to the tax.
Planet saver
There is an increasing trend towards green and woodland funerals, although this doesn't necessarily mean saving money, as the price of cardboard or wicker coffins can be higher than the standard variety. To find out where and how to be buried in an environmentally friendly way, contact the Natural Death Centre on 020-7359 8391 or visit naturaldeath.org.uk. They can also advise on a more DIY approach to funerals, which can reduce bills.
