Eight in 10 people aged over 50 do not have over 50s insurance covering funeral costs.
This is according to research of 2,000 UK adults aged over 50 from OneFamily which also found 11% of those surveyed were not planning to have a funeral.
The cost-of-living crisis was found to be a key contributing factor, with one in eight (13%) of those choosing not to have a funeral saying they simply cannot afford one and almost three in 10 (28%) saying they do not want loved ones to have to worry about paying for an expensive send-off.
When asked how much they believe a funeral costs, the average amount people thought they would have to put aside is £4,370.
Nearly two in five (39%) of the same group of people also said they were concerned they will not have enough savings to live on comfortably in retirement. Of this group, almost a third (29%) said their savings simply had not kept up with inflation.
To save money, nearly half (45%) of those surveyed said they would opt for a cremation and a third (32%) said they would simplify the casket. However, 9% said they would consider donating their body to science.
Ryan Griffin, director of protection at OneFamily, said: “Funeral poverty is a very real problem. It’s quite shocking that 2.8 million people believe they can’t find a way to allow their families to celebrate their life. It’s part of the grieving process.
“Our research found nearly four in 10 people aged over 50 thought life insurance would be too expensive, yet OneFamily’s premiums start from as little as £10 a month.
“Equally, one in 10 said they didn’t understand what the benefits were and others said they don’t have over-50s cover because they have a pre-existing condition, yet we don’t require a medical and there’s guaranteed acceptance.
“So, advisers really have a big role in understanding people’s perceptions of the product and explaining how this type of cover works to their customers.
“Of those who had taken out insurance, or were planning to, just over half did so to ensure that the cost of their funeral was covered – and our policies automatically include funeral funding cover to make things as simple as possible.
“Having protection in place is a simple and cost-effective solution for those older people who are worried that their savings might not cover their funeral.
“But advisers are absolutely crucial in getting that message out there.”
