It costs more than £7,000 to die

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The cost of dying is now higher than £7,000, according to new research. Are you prepared?

No one likes thinking about death, but sometimes we just have to. One of the things you may not have thought about is just how much it will cost to die. Care to take a guess?

According to Sun Life Direct's The Annual Cost of Dying Report, death-related costs such as funerals, probate, headstones and flowers have increased to an average of £7,248. I bet you didn’t guess that high.

This is 20% higher than in 2007 and an increase of more than £400 since last year.

How prepared are you?

Some 53% of those quizzed by Sun Life Direct said they were surprised the cost of dying was as high as £7,248 and only 7% said they thought it would be higher than this.

The research also revealed that 26% of people have made no plans for later life and 87% have made no arrangements as to where they will live if they are unable to care for themselves in old age.

Plan for the future

Nobody likes thinking about death, but if you want to ensure your family is looked after when your time comes around, you may want to think about taking out life insurance.

With this type of insurance, you pay a monthly or annual sum, which is paid out to your beneficiaries when you pass away.

This can be used not only cover funeral costs, which Sun Life Direct claims have increased by 61% in just seven years, but many other things too.

For example, it can be used to settle any outstanding debts you have, such as balances on credit cards or other loans.

These debts would otherwise be deducted from your estate, which would reduce the inheritance your family receives.

The money could also help to maintain the standard of living your family is used to and could contribute to the cost of your children’s education.

Before you go ahead and take out a life insurance policy, make sure your pension or endowment scheme doesn’t already include this type of cover.

If it doesn’t, the next step is to shop around to make sure you find the best policies at the cheapest rates.

If you don’t have any dependents and have enough savings to cover your funeral expenses, then life insurance may not be necessary.

**This material is for information purposes only and should not be considered financial advice. We strongly encourage our readers not to rely solely on this content, but to seek independent advice when making financial decisions.**

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