By Naomi Caine, 26/09/2007 00:00

Can you afford to die?

It's not something we like to think too closely about, but death is big business. Make sure you're not caught out.

You probably don't want to think about your funeral - but you should, not least because death can be an expensive business. The typical cost of a basic funeral was £2,227 in 2006, up from £2,018 in 2005, according to research by the Natural Death Centre, a charity that offers advice to the recently bereaved. And with a bill running into thousands, you might as well get the sort of send-off you want.

Rules for funerals
There are actually very few funeral rules. The death has to be certified and registered and the body has to be buried or cremated. But the ceremony does not have to be religious and can take place almost anywhere. More of us are shunning a traditional send-off. Nowadays just 15% of people stick with tradition, compared with more than a third (34%) who want an eco-funeral, according to a study by Post Office Financial Services. Phil Ashkuri, director of insurance at the Post Office, said: "The research shows that many of us have strong opinions on how we want our send-off to be, with a high proportion embracing an alternative funeral style."But many of us fail to talk to our loved ones about our preferences or make any financial provision for our funeral. This means that when the time comes, family and friends will be forced to do the best they can - even if it ends up being something you would not have wished for."

You can set out your funeral wishes in your will, but some wills are not read before the funeral. It is also a peculiarity of English law that allows your executors to ignore your funeral demands. So experts advise you to make a note of your requirements in a separate document." It is infinitely better if the deceased has left a record of his or her funeral wishes. The family is often shocked and emotionally distressed, so it helps to have a funeral plan," said Mike Jarvis of the Natural Death Centre.

An economical send-off
So how do you decide what you want - and what you can afford? The first big decision is whether you want to be buried or cremated.The cost of a burial plot varies across the country, starting at about £300. But burial plots in churchyards and cemeteries are filling up fast. The government predicts that all designated burial space in England and Wales will be full in 30 years, unless changes are made. Urban areas are particularly squeezed - London's burial grounds are predicted to be full in 12 years. Labour wants to lift and deepen old graves to allow room for up to six new coffins to be placed on top of the older remains. However, the graves could not be re-used for at least 100 years and families would have to give their consent.If you want a traditional coffin, there's a big choice - and a big price range. The cheapest coffins start at about £300, but you could pay more than £2,000 for a deluxe model. Then there's a headstone. You should budget for at least £850 for a headstone. The costs are already mounting up - and you haven't included transport, flowers and possibly a minister. Cremation tends to be cheaper, but the gap is narrowing. So you might end up saving only a few hundred pounds if you opt for cremation.

Help with arrangements
Most bereaved families ask a funeral director to take care of the arrangements. But make sure the company knows what you want and presents its prices clearly. Many firms, for example, exclude so-called disbursements, which are payments to third parties such as the minister and the crematorium.
There are a number of national funeral directors, such as Dignity and Co-op Funeral Care, but some people feel happier with an independent local company that perhaps knew the family or is at least a member of the community.Always search for a funeral director that is a member of a trade association such as the National Association of Funeral Directors or the Society of Allied and Independent Funeral Directors. Members of a trade body must sign a code of practice. They should also publish price lists and send itemised bills. One in 20 families now chooses to replace a religious service with a more contemporary ceremony, according to the NAFD. There have been calls for churches to modernise their services to halt the decline. Motorcycle Funerals, which was founded by Rev Paul Sinclair, a Pentecostal minister, is one example. It uses side-car hearses in place of traditional vehicles.But some people reject religion entirely. The British Humanist Association said: "There are a growing number of people for whom religion is unimportant, or who have made a clear decision to live their lives without it. For them a religious funeral service may seem insincere and bring little comfort."
You can ask a humanist officiant to lead the ceremony. The fees vary but fall within a nationally agreed scale of £100 to £155, excluding travel expenses. You can get more details from their website.

Going green
Or, you can opt for a green funeral. The NAFD estimates there are 2,000 green funerals every year and there are now more than 200 natural burial grounds across Britain, compared with 52 in 1997.If you choose a natural burial, the body is buried on land that is to be converted into forest, or even a flower meadow. At most woodland burial sites, a tree is planted where the burial takes place. And instead of using varnished coffins, the coffins are made out of bamboo, willow or even cardboard and are fully biodegradable.Traditional coffins made of wood veneer often contain formaldehyde, which is bad for the environment - whether or not they are burnt or left to break down into the earth.Cremation poses another problem: the fumes from vaporised dental fillings make up 16% of mercury emissions, according to government figures. Natural burials tend to be cheaper than regular burials or cremations. In some areas, you could save up to £1,000. A natural burial ground will not accept an embalmed body - the formaldehyde again. But embalming is not really necessary for standard burials. "There is no need for a body to be embalmed under normal circumstances. Most funeral directors have refrigerated mortuary facilities to preserve the body in the short term," said Jarvis. You should check with the funeral company whether embalming is included in the price - and watch out for confusing descriptions. A funeral director might talk of hygienic treatment, which basically means embalming. The exception to the embalming rule is if a body has to be repatriated because it can take longer and the body will usually have to be carried in an aircraft. The cost of repatriation depends on a number of factors, but International SOS puts the average price from Australia to the UK at around £7,000, or £2,000 from Spain.

How to fund a funeral
Some pension schemes pay out a lump sum for funeral costs, so you should check the details of your own scheme. You can also set up a life insurance policy so your family can use the proceeds to pay for your funeral.Alternatively, a number of companies offer pre-payment plans. They typically cost between £1,500 and £3,000, depending on your requirements and where you live. Always check exactly what the plan covers and what happens if you die before you have made all the payments or if the funeral company goes bust.If you have been left to organise the funeral for a relative who has not made any financial provision, and has no other assets, you may be able to get help from the government. If you are receiving means-tested benefits, such as pensions credit or income support, the government might provide you with up to £700 from the social fund. For more information, visit the Department for Work and Pensions website.