The credit crunch has led to an increase in the number of people planning ahead

DYING COULD become a luxury some people might not be able to afford in Northern Ireland in the current economic climate as funeral directors consider introducing “pay before you go” terms for their services.

Some funeral directors in the North have reported an increase in the number of cases where relatives and friends are unable to pay for the cost of burying their loved ones.

The National Association of Funeral Directors hosted a special meeting for members and non-members in Northern Ireland to discuss how they could deal with the problem of recovering outstanding debts while maintaining cash flow.

Dominic Maguire, the association’s spokesman, said one of the possible solutions would be for funeral directors to ask for third-party payments upfront.

“The issue of funeral directors not getting paid is becoming an increasing concern. Funeral directors cannot act as interest-free banks. They are not there to advance loans to people.

“There is a commercial reality that must be realised,” Mr Maguire added.

He said some clients did not understand when they got a bill from funeral directors that there were two distinct parts to it.

“The first part is for goods and services of the funeral directors, including the coffin and hearse etc. The second part is for what we call disbursements – that is for the florist bill, insertions in newspapers, cemeteries etc.

“If the bill is not paid, the funeral director still has to pay all of the third-party costs. So it is a double whammy for the funeral director because they have provided a service which they did not get paid for but they also have to pay out for all the other costs incurred.

“It is unrealistic to think funeral directors can keep doing this,” Mr Maguire said.

The Co-operative Group’s Funeral Care division is just one of the companies reviewing how it currently operates in the North.

A spokesperson for Funeral Services Northern Ireland said: “In line with the policy of our parent organisation, the Co-operative Group, we are considering asking for the third-party costs in advance of the funeral, due to the rise in bad debts.

“This has been a long-standing problem in the industry, however, and there is no evidence to support the theory that the economic downturn is causing additional payment problems.”

The costs associated with dying in the North have risen by an estimated 30 per cent on average over the last five years.

Research commissioned in 2008 by Axa Sun Life suggested the average cost of a cremation in the UK was £2,160 while a burial was £2,620.

This is before additional costs, such as purchasing a grave, organising a cremation, floral tributes, a headstone and newspaper notices were taken to account.

In some cases, there are also the costs of a funeral home, mourning cars, a wake and catering to consider.

The Axa Sun Life report concluded that the overall price of an average funeral could be in the region of nearly £6,000

There is government assistance available to pay for the cost of funerals if families or individuals are on a low income or receiving benefits in Northern Ireland.

In general, however, the burden of paying the price of saying goodbye to their nearest and dearest falls in the North on immediate family members or close friends.

The credit crunch may have created new problems for funeral directors but according to some organisations, it has also led to an increase in the number of people planning ahead.

Belfast-based O’Kanes Funeral Directors is a fourth-generation family business. It has seen a significant increase in the number of people contacting it to “put their affairs in order”.

Company representative Hugh Dougal said: “We have definitely noticed in the last five or six years a big increase in people coming to us for pre-payment funeral plans. It is very popular with the older generation.

“In fact, quite a few have told us that because of recent events, they don’t feel happy leaving their money in the banks because they feel it is not safe and they are opting to pre-plan their own funerals.”