Average funeral now costs more than 10,000 euros: many people are short of money

The cost of a funeral has risen by over 40 percent in eight years. While an average burial or cremation cost around €7,500 in 2017, that amount now exceeds €10,000. Yet, many people are still insured for amounts between €3,000 and €4,000.

“The gap between what people think a funeral costs and the reality is only getting wider,” Nick Brendel of comparison site Overstappen.nl told ANP .

More than two-thirds of Dutch people have funeral insurance, but in many cases, the amount simply proves too low. Brendel: "People take out insurance at a young age and then don't look at it for decades. Meanwhile, prices have continued to rise due to inflation, more expensive materials, and higher gas and wood prices."

The result is that surviving relatives are left with unexpected costs. According to Brendel, in practice, this often amounts to thousands of euros that they have to contribute themselves. "At such a vulnerable time in life, you don't want to have to deal with financial stress on top of that."

Besides the basic services, such as the coffin, transport, and the crematorium or grave, many people underestimate the additional costs. Think of flowers, music, advertising, and catering. "And that famous slice of cake with coffee? That usually comes from the supermarket," notes Brendel. "Yet, you pay a hefty price for it."

If there's insufficient insurance, families have to make choices. Will it be a modest farewell? Or will you go into debt? According to Brendel, this impacts the grieving process. "A dignified farewell is important for healing. But if there's no money, there's little choice."

According to Brendel, the core problem is that funeral insurance policies don't automatically adapt to price trends. This creates a growing gap between the insured amount and the actual costs. "You pay premiums for years, but when it comes down to it, you don't get enough," says Brendel. "Then the disappointment is huge."

The solution starts with awareness. Brendel advises consumers to check their policy annually and adjust it if necessary. "Be realistic: €4,000 isn't enough these days. Aim for at least €10,000."

Insurers and intermediaries should also be more proactive in informing customers about price trends. According to Brendel, funeral directors could also be more transparent about the actual costs and possible alternatives. "There are ways to say goodbye with dignity without exorbitant costs, but you have to be honest about them."

Finally, experts say the government also has a role to play. Brendel: "There's currently a lack of information about the true cost of a funeral. People think they're well-insured, while in many cases they aren't. That's heartbreaking, because it always comes unexpectedly."

If nothing changes, the problem is only likely to get worse. More families will find themselves in financial trouble after a death, resulting in minimal funerals and long-term debt. "That's not the legacy you want to leave behind."

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