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Funeral Pre-Planning & Navigating Costs for Peace of Mind

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By: Lauren Thomas Edited by: Katelynne Shepard Subject Matter Expert Reviewed by: Stephanie Makowski 7 cited sources Updated Oct 14, 2024
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Planning for the inevitable is a practical, thoughtful step that can provide comfort and peace of mind for families and loved ones during difficult times. In this article, we look at the emotional and financial benefits of making end-of-life arrangements, identify typical funeral expenses, and compare payment options.  

Key Takeaways

  • Funeral pre-planning provides financial and emotional benefits.
  • Funeral costs vary by thousands of dollars depending on the arrangements you choose.
  • There are several options for paying for funeral arrangements.

The Emotional and Cost-Saving Benefits of Pre-Planning a Funeral for Yourself or a Loved One

While losing a loved one is a topic most of us would rather avoid, death is an inevitable part of life, and end-of-life planning can provide significant financial and emotional benefits during a stressful and confusing time.

Pre-Planning a Funeral Alleviates Stress for Loved Ones

Navigating funeral arrangements is a challenging, unwelcome experience for many people, and the maze of products and services available can cause added turmoil in an emotionally charged time. By making end-of-life arrangements ahead of time, you can spare your loved ones the stress of making hurried decisions under pressure.

Funeral Pre-Planning Ensures Personal Wishes Are Honored

If you have preferences regarding how your body is handled or your life memorialized, pre-planning your funeral ensures your final wishes are respected. During this process, you can:

  • Outline burial or cremation preferences
  • Select reading, rituals or music you want included in your service
  • Choose a venue
  • Select a funeral service provider
  • Consider payment options

Planning for Funeral Expenses Can Help Loved Ones Avoid Financial Strain

Funeral expenses add up quickly and can add financial strain to families navigating grief. By prepaying funeral costs and detailing your wishes, you can avoid unnecessary added costs and services. Additionally, locking in today’s pricing lets you protect your loved ones from inflation-fueled price increases.

How Much Does a Funeral Cost?

According to the 2021 National Funeral Directors Association (NFDA) Member General Price List Study, the median cost of a funeral with a viewing and burial came to approximately $7,848[1]. By contrast, the cost of a funeral with a cremation came in hundreds of dollars lower at around $6,970. Median costs tend to run lowest in the Pacific states and highest in the West North Central region.

National Median Funeral Costs

  • Basic services fee: $2,300
  • Embalming: $775
  • Metal burial casket: $2,500
  • Wood burial casket: $3,000
  • Green burial casket: $1,500
  • Rental casket: $995
  • Cremation fee: $368
  • Cremation casket: $1,310
  • Urn: $295

Inflation and Funeral Expenses

Between 2016 and 2021, the median cost of funeral expenses increased by 6.6% for funerals with burials and 11.3% for funerals with cremations. The sooner an individual plans and pays for funeral arrangements, the more significant the cost savings.  

Financial Planning for Funeral Expenses

Funerals can be costly, but fortunately, you can financially prepare for end-of-life expenses in several ways. These can include:

  • Savings accounts. Putting aside money into a savings account is an effective way to plan for funeral expenses. However, it’s important to ensure it’s set up as a joint account so loved ones can access those funds when the time comes.
  • Life insurance policies. Upon the policyholder’s death, the life insurance company pays a lump sum to the policy’s beneficiaries, which can be used for funeral costs. Stephanie Makowski, an insurance expert with over 20 years in the industry, says, “When choosing life insurance, understanding funeral expenses will help make the insurance coverage amounts easier to understand and let you ensure the policy you choose has enough coverage to take care of projected expenses.”
  • Prepayment. Many funeral providers have prepayment plans that you pay into. These plans accrue interest over time, and the funds are transferred upon your death to the funeral provider to cover services.
  • Pay with cash or credit. If you have the funds, you can pay for funeral costs ahead of time with cash or credit cards. Many funeral providers have installment plans, letting you pay out-of-pocket over time.
  • Final expense insurance. Final expense insurance includes a death benefit to help cover end-of-life costs, such as burial costs and medical and legal bills, up to the policy’s limits.
  • Payable-on-death accounts. Individuals with a bank account can assign a beneficiary who inherits the money upon their death. This provides the beneficiary prompt access to the money, without the risk of it being held up in probate, letting them use it for funeral arrangements.

Utilizing Available Benefits to Save Money on Funeral Costs

Depending on your eligibility, you may have access to programs and benefits that can help you pay for funeral costs[2]. Some sources of assistance to consider include:

  • Government agencies. If the deceased received Social Security benefits, their surviving spouse may be entitled to a small death payment.
  • Veteran’s benefits. If the deceased is a veteran, they may qualify for a free burial and headstone in a national cemetery[3].
  • Victims’ assistance. If the deceased was a victim of an accident or a violent crime, the family may receive funds from their local Victim Compensation Program[4].
  • Employer benefits. Some employers provide survivor benefits to help cover funeral expenses.

Common Questions About Funeral Costs & Pre-Planning

What Is the Average Cost of a Funeral?

The typical funeral with a viewing and burial costs approximately $7,848, while the median cost of a funeral with a cremation falls around $6,970[5].

What Are the Most Expensive Parts of a Funeral?

The casket ranks as the costliest part of a funeral[6]. While the average cost comes in just over $2,000, costs can climb over $10,000 for high-end models.

Does Life Insurance Cover Funeral Costs?

Yes, life insurance can cover funeral costs, as well as other end-of-life expenses, up to your policy limits[7].

Can Funeral Costs be Negotiated?

Yes, funeral costs are generally negotiable. Knowing a funeral home’s cost list, along with rates from their competitors, gives you leverage when discussing arrangements.

How Can I Save Money on Funeral Expenses?

You can save money on funeral expenses by using several strategies, including:

– Purchasing a casket or an urn online or renting a casket
– Choosing a free or low-cost funeral venue, such as a community space or church, instead of a funeral home
– Declining embalming services
– Considering eco-friendly alternatives, such as planting ashes with a tree or opting for human composting

Have Peace of Mind With Funeral Pre-Planning

Pre-planning a funeral provides unmatched peace of mind, offering a priceless parting gift for loved ones. By taking the steps to navigate funeral expenses ahead of time, you can save money, outline the details of how you want to be memorialized, and spare loved ones from added financial strain and emotional stress.

Written by Lauren Thomas

Lauren Thomas is a seasoned freelance writer with over a decade of experience in creating engaging content across a variety of niches. She holds a bachelor's degree in multidisciplinary studies with focuses on Business and Psychology, allowing her to bring a unique perspective to numerous fields, including senior care, mental health, insurance and parenting and family topics.


Edited by Katelynne Shepard

Katelynne Shepard is a writer, editor and SME who is proficient at crafting and reviewing content. She has been a full-time copywriter and editor since 2011 and has written content for Fortune 500 companies, independent law firms, indie publishers, small-business owners and mainstream websites. She specializes in parenting, lifestyle, family law, personal injury, criminal law, immigration law, astrology, personal finance, education and health care. In addition to thousands of e-commerce product and category descriptions, Verle's work includes SEO blogs, social media posts and long-form informational articles.


Subject Matter Expert Stephanie Makowski

Stephanie started her career back at the dawn of time in personal lines, which is heavily involved in Home Owner Insurance for the state of California, working within the retail agency space. She has worked in personal lines for about eight years of her career, but because Stephanie is extremely familiar with it, she would get pulled into serving client files and explaining policy language. The last company Stephanie worked for was called Vindati, where she worked in the Farm and Ranch space as an underwriter putting pricing together. The Farm and Ranch product line is another form of home insurance that pertains to the farming industry. The policy language mirrored HO-3 to HO-5 forms. Stephanie also learned the homeowners exposure for the whole USA as Vindati wrote in all 50 states.

Sources

  1. Federal Trade Commission. (n.d.). Funeral costs and pricing checklist. Sourced from https://consumer.ftc.gov/articles/funeral-costs-pricing-checklist

  2. Investopedia. (n.d.). How to pay for a funeral. Sourced from https://www.investopedia.com/how-to-pay-for-a-funeral-7108073

  3. Department of Veterans Affairs. (n.d.). What does burial in a VA National Cemetery include? Sourced from https://www.va.gov/resources/what-does-burial-in-a-va-national-cemetery-include/

  4. Office of Victims of Crime. (n.d.). Victim compensation and assistance in your state. Sourced from https://ovc.ojp.gov/help-for-victims/help-in-your-state