Life insurance cover for the UK population appears to be in serious crisis, amidst new reports that even more families are turning to donation service, Crowdfunding, to cover family funeral costs.
Every day, people turn to social media to share Crowdfunding funeral pages. These donation pages are set up to raise a set amount of money, in order to fund a funeral for a loved one when there are insufficient funds available to cover these costs.
In 2017, the average cost of a funeral in the UK was recorded to cost a startling £4,086. Therefore, if funeral and burial costs continue to rise, by 2024 the average cost of a funeral for UK residents will surge to a whopping £5,925.
JustGiving note that between 2015 and 2016, the number of funerals paid for by Crowdfunding actually rose a staggering amount – 313 percent. This proves that using this platform to cover funeral expenses is in high demand, which can only be down to a lack of life insurance cover for the person who has recently died. Otherwise, their life insurance policy would cover the expense of the funeral, with no need for a donation fund to be set up.
Between January and September (2016), more than 2,000 people across the whole of the UK had Crowdfunded to cover the costs of family funerals, as well as 2,007 Crowdfunding pages being launched to pay for funerals within this short timeframe.
Even more surprisingly, Crowdfunding offers an option to set up a donation campaign page ahead of your death, so people can contribute in advance to the costs of your burial.
So, although Crowdfunding has provided so many opportunities for those who do not have the funds to pay for relatives’ funerals, this spike in donation-funding raises the question – why do people still not invest in life insurance?
Shockingly, only 27 percent of the UK population has invested in life insurance cover; that equates to nearly 14 million people, which is a worrying statistic considering there are 66.57 million people living in the UK. In fact, it seems mobile phone insurance is viewed as more of a necessity than life insurance; 12 percent of the UK population have phone insurance, whereas only nine percent of people have critical illness cover.
Despite donation services like Crowdfunding being great ways to raise money for causes like this, and for charity donations, should we really be relying on other people to fund our funeral, when we didn’t invest in a good life insurance policy in the first place?
Investing in life insurance and critical illness cover eradicates the need for these donation campaigns, and saves your loved ones from struggling to make ends meet in the meantime, once you pass. As much as this service is rewarding, you should really be investing in your and your family’s future by comparing life insurance and purchasing it, no matter what your age.
So, if you’re looking to invest in life insurance cover, or upgrade your current policy, compare life insurance quotes with Cuuver.com, today.
This should not be construed as advice and is for informational purposes, only.