Analysis of the current situation in the market
Depending on the country in Europe, generally over the past ten years prices of funeral services did not increase, but it is rather noticeably seen a drop in prices (from 10% to 20%).
The economic crisis of recent years has led to a drastic fall in revenues (unfortunately somewhere up to 50%) even to a loss of jobs in almost all classes of our society. By our comparison, we analysed the situation in the two largest countries in Western Europe – in France and Germany.
According to statistics of state institutions there are already missing the funeral companies (number of funerals according to the number of companies and how many funerals they can perform in average) and about 150 companies for France and 250 for Germany.
In the upcoming years it is expected the rise in the death rate up to two times. Only in 2040 could be expected that this number will drop to 0.86% for France, and 0.92% for Germany. The cause of the increase in death that is expected is the post-war baby-boom from 1950 to 1960. It is estimated that in 2030 there will be the lack of funeral companies, even up to 350 companies in France and 550 in Germany.
Conclusion of the analysis
There are no announcements that in the future prices of funeral services can go down due to increased competition, but on the contrary, they can only go up. In the same scale, insurance companies will adjust their pricing of policies upwards. Therefore, now we have to seek and find other means of funding.
For our comparison, we asked for individual offers from 30 insurance companies in France and from the same number in Germany. After a detailed analysis and comparison, we chose the best. Hereinafter we will call these companies F insurance for France and G insurance for Germany.
Average life expectancy in Western Europe is 79 years (mean average between women and men), and 75 years in Eastern Europe. For comparison, we will take the average life expectancy of 77 years, and the final age of 99 years.
For the year entering the membership we will take 3 different ages – 40 and 50 years (the most common start of membership) and 65 years (entry into retirement). We will compare only the individual membership in the association, since membership of couples and family membership is more favourable. The average funeral costs for an intermediate funeral with repatriation from abroad and burial in one of the Balkan countries are around 4,500 euros (without tombstone). We will take that figure to compare the F and N insurance.
For comparison we will take STANDARD LIPA PLUS package of our association, for repatriation from Germany to Serbia since it is the same value of the package.
Example of comparison of packages in the amount of 4,500 euros
Conclusion of the comparison
In the table above, we demonstrate clearly that the contributions of the Association Lipa are 4 times less expensive than the best standard insurances. With standard insurance policies you always pay more than the amount you receive, but with membership in LIPA Association you never be in situation to overpay your package.