The industry’s take on Sunlife’s Cost of Dying figures

While SunLife’s 2025 Cost of Dying Report has highlighted a rise in funeral costs, concerns have been raised by funeral providers and their trade bodies that its definitions of a ‘simple funeral’ and overall ‘cost of dying’ may mislead consumers. The cost of a simple, unattended funeral has risen by 3.5% in a year to a record high of £4,285, while the overall cost of dying has reached £9,797, according to Sunlife’s findings. A simple funeral is defined by the insurer as any arrangement that includes an attended burial or cremation, a funeral director, doctor, and celebrant fees. However, both the SAIF and NAFD argue that this definition is misleading and that the true cost of a basic funeral is lower. A simple funeral arranged in 2004 was priced at £1,835, and if funeral prices had risen at the same rate as inflation, the average cost today would be £3,211. However, SunLife’s findings state that funeral costs have risen at well above that rate and are now 134% higher than they were 21 years ago – rising from under £2k to more than £4k. Meanwhile, the total cost of dying – which includes full send-off costs and probate fees – has risen by 1.4% to £9,797. This was the highest figure recorded by SunLife, though it notes that this sum “varies significantly between estates”. This comparatively modest rise in the cost of dying, according to SunLife, is due to a decrease in the average cost of probate – which has fallen by almost £100 year-on-year. That said, since probate fees are often calculated as a percentage of the estate being managed, SunLife believes this decrease is in part due to a variance in the estate sizes of respondents – rather than an actual reduction in professional fees. Following the report’s release, the SAIF called on SunLife to clarify how it calculates funeral costs. The trade body argues that consumers are being misled, as SunLife’s figures include items not normally associated with a “simple funeral”, such as higher-grade coffins, limousines, or doctor’s fees. Acting president of the NAFD, Darryl Smith, echoed these concerns, adding that the inclusion of mid-range coffins and limousines in the “simple funeral” definition distorts the true cost families should expect. The NAFD also criticised the reported £9,797 figure for the overall cost of dying, stating that it conflated funeral expenses with unrelated costs like wakes, headstones, and probate fees, which vary greatly. “This lack of clarity obscures the distinction between funeral director fees and third-party costs, making it challenging for families to navigate these expenses,” Smith said. “Greater transparency, along with standardised definitions of what constitutes a funeral cost, is essential to provide families with the tools and information they need to plan appropriately during what is already a difficult and emotional time.” The SunLife report’s definition also contradicts CMA rules, which legally require funeral providers to offer an attended funeral that includes only essential transport and a low-cost coffin. The SAIF argues that these rules have served as an industry benchmark since 2021, and what SunLife describes as a simple funeral is closer to what most UK funeral directors would classify as a traditional funeral. “We’re disappointed to see this confusing terminology in SunLife’s latest report,” Declan Maguire, president of the SAIF, said in a statement. “The funeral sector and the CMA have worked hard to ensure transparency for consumers, and the progress we’ve made risks being undermined by these figures.” In part due to its frustration with SunLife’s findings, the SAIF commissioned a new independent annual report to “provide the real average cost of a funeral in the UK”. According to this report, Maguire states that a typical simple funeral (using the CMA’s definition) costs several hundred pounds less than SunLife claims. Maguire added: “Consumers should not be driven by fear to purchase prepaid funeral products based on reports from insurers. We call upon SunLife to commit to providing clarification in the short term, reviewing its report methodology, and working with the funeral sector to support the CMA’s guidance on transparency.” Financial strain was identified as a significant issue to consumers in SunLife’s report, with only 38% making provisions to cover their send-offs. Families often struggle to find an average of £2,371 to cover expenses, with 24% relying on credit cards, 23% borrowing from friends or relatives, and 19% selling belongings. Some 75% and 61% of respondents also admitted to their financial hardship leading to mental and physical health issues, respectively. SunLife CEO, Mark Screeton, commented: “This year’s Cost of Dying Report highlights just how much of a financial and emotional impact not knowing can have. A send-off doesn’t need to cost thousands. A direct cremation with a DIY get-together afterwards might be the perfect way to say a personal goodbye to a loved one.” A range of funeral directors have had something to say, having read the report. Clare Montague, CEO of Poppy’s Funerals, welcomed the growing consumer awareness of the funeral industry but criticised the report’s focus on cost over value. “Cost remains a poor indicator of experience,” she said. “You can spend a lot of money and have a poor experience, or you can find an affordable funeral director who can help create a meaningful funeral.” Chloe Lymn Rose, director at A.W. Lymn, stressed the importance of affordability, noting that while costs have increased by 3.5% nationally, the Midlands has seen a lower 2% rise. “It’s crucial to keep simple options accessible, as simplicity plays a vital role in emotional and financial wellbeing for grieving families.” Nick Dough, managing director of Douch Family Funeral Directors, acknowledged the report’s insights but urged caution, saying: “The calculation of the overall cost of dying includes a range of optional extras that are not typical of many funerals, which can give an inflated impression of the financial burden. While the report highlights relevant issues, it’s important to remember that this is just one perspective in a complex industry.” Meanwhile, a Co-op Funeralcare spokesperson added: “The average cost of our funerals is lower than SunLife’s estimation of the sector average. We remain committed to providing the highest standards of care at good value to bereaved families.” Finally, Joseph Evans, funeral director at Jennifer Ashe and Son, pointed out that rising costs are largely due to external factors beyond the control of funeral providers. “While it may seem like funeral directors are profiting from higher costs, many reinvest in their businesses to improve services for families. The key is how options are presented – starting with affordable packages rather than leading with the most expensive choices.” The 2025 SunLife report yet again reported that Brits still find talking about funerals “as uncomfortable as ever”, with 18% not knowing any of their loved one’s wishes and 51% not knowing whether the deceased wanted a burial or cremation. While some 67% don’t know if their family member wanted a religious service or not, a further 87% don’t know who they should be inviting to pay their respects. This lack of knowledge has been found to often lead to families spending more than they need to. Funeral directors and trade bodies continue to call for greater transparency and standardisation to ensure families receive clear, accurate information when planning a loved one’s farewell.