Counting the cost of death of a loved one

Providing a funeral and memorial, as well as covering probate fees and other costs associated with dying, sets the average family back by 6,801, according to financial services firm Sun Life Direct.

But despite the sum falling by nearly 300 from its 2009 peak, 10 per cent of people said they struggled to give their loved ones the send-off they wanted.

One in five of these people said they had to use a credit card to cover the costs, while 20 per cent borrowed money from friends, 4 per cent took out a loan and 5 per cent sold some of their belongings.

But 10 per cent of people said they had been forced to cut back on funeral arrangements because of financial constraints, while the same proportion cashed in savings and investments.

Nearly half of people had not made any provisions to cover the cost of their funeral before they died, while 41 per cent arranging a service said they did not know exactly what their loved one would have wanted.

Four out of five funerals are now cremations, which cost an average of 2,546, while burials typically cost 3,168.

The actual cost of a funeral has risen by 4.5 per cent during the past year to average 2,857, but people have cut back on the amount they spend on associated items in the face of the economic downturn.

Families now spend an average of 229 on limousine hire, down from 487 in 2008, while they typically spend 128 on flowers, compared with 229 three years earlier.

A memorial typically costs 759, while 338 and 104 are spent on catering and venue hire respectively.

Relatives also typically pay 2,000 in legal fees associated with the administration of an estate.

Funeral costs have soared by 49 per cent during the past seven years, and Sun Life Direct predicts they will rise by a further 30 per cent during the next five years.

Mark Howes, managing director of Sun Life Direct, said: "It's a traumatic enough time when saying goodbye to those closest to you, without having to face almost devastating financial and emotional effects from having to find funeral costs too.

"Over 1.5 million people in the UK face a major bereavement each year and as almost half have made no provision for their funeral, loved ones are left facing severe financial difficulties."

People in London face the highest costs associated with dying, at an average of 9,367, while those in Wales face the lowest at 5,451.