Yes, it is possible to take out a loan for a funeral. Saying goodbye to someone you love is hard.
Planning a funeral when you don't have enough money makes it even harder. But don't worry - you have options to help pay for funeral costs.
In the UK, the average funeral costs about £3,953.
Prices usually include:
If you add flowers, food, and a solicitor to handle paperwork, the costs may be higher.
Many people have specific ideas about what makes a perfect goodbye.
Here are some helpful things to remember:
A direct cremation is a simpler form of funeral. The funeral home takes the body directly to the crematorium where it is cremated without holding a service. Then the ashes are given to the family.
Direct cremations start from around £1,500 and give families a basic option that costs less than traditional funerals. They can still honour their loved one in their own way later with the ashes.
Some people plan ahead for their funeral costs. This can be through the use of:
But what if there's no money set aside? In that case, family members, friends, or the person handling the estate might need to pay. You can also ask for help from the government or look into funeral loans.
You might get a Funeral Expenses Payment from the government if you receive certain benefits or tax credits. This help can pay for:
If there's no money in the person's estate and no one to arrange the funeral, the local council or hospital can arrange a basic cremation service.
If you can't get government help, you have other options:
Funeral loans help you spread the cost of a funeral over time with affordable monthly payments. These special personal loans for funerals can provide quick access to money during a difficult time.
Remember, loans need to be paid back, so make sure you’re able to comfortably afford repayments.
You can set up a page on websites like GoFundMe or JustGiving. This lets you ask friends and family to help with funeral expenses.
If your loved one had life insurance, you might use this money to pay for funeral costs.
Veterans can get help with funeral costs. If the deceased was a war pensioner and their death was related to their service injury, you can claim help through Veterans UK.
The Royal British Legion might also help with some costs or help you apply for support.
As mentioned earlier, there are government assistance programmes available for funeral costs. If you get Pension Credit on top of your state pension, you can apply for Funeral Expenses Payment.
Remember that this payment will be taken from any money left in the deceased’s estate.
It helps to talk about funeral wishes with your family before you need to. While it's not an easy topic, letting people know what you want and how it will be paid for is important for everyone's peace of mind.
Disclaimer: We make every effort to ensure content is correct when published. Information on this website doesn't constitute financial advice, and we aren't responsible for the content of any external sites.
Zubin is a personal finance writer with an extensive background in the finance sector, working across management and operational roles. He applies his experience in customer communication to his writing, with the aim of simplifying content to help people better understand their finances.
Sign up for tips on how to improve your credit score, offers and deals to help you save money, exclusive competitions and exciting products!
