To plan an affordable funeral, know what you really need, what it should cost, and your rights as a consumer.
Like other costs, the costs of funerals in the U.S. are rising steadily, with the median cost of a funeral with a viewing, burial, and vault hitting an alarming $10,000 in 2023. We live in a fast-moving culture, and perhaps not even your financial advisor will take the time to counsel you to think about the high cost of dying. Planning ahead can save you, or your loved ones, stress and money during the difficult time right after a loss.
If you’re thinking ahead about your own funeral expenses, you might be tempted to take care of everything yourself by paying in advance. In the August 2023 edition of Senior Spirit, we recommended against pre-need insurance and pre-paying for funeral expenses, following guidance from the Funeral Consumers Alliance. A better option, one that allows you more control over your money and protection against unforeseeable events, is two-fold. First, do your research and compare prices and services at funeral homes. Decide on a provider and package, and share your preferences with your loved ones in writing. Second, set up a joint savings account or payable on death (POD) account with funds dedicated to funeral expenses that won’t have to go through probate. Refer to that article for more advice on how to pay wisely for funeral expenses.
But what about lowering funeral costs in the first place? To plan an affordable funeral, know what you should expect to pay, what funeral homes can’t ask you to pay, and the most economical options.
Know the Average Prices
Prices for funeral services vary from state to state, so it is important to do your research on what to expect in your area so as not to be either blindsided or overcharged. For example, expect the average funeral with viewing, ceremony, and burial (no vault) to cost $8,985 in New England and $7,390 in the Rocky Mountain states, according to the National Funeral Directors Association. Working with a funeral home, you can expect a standard service fee of about $2,500 for funeral home staff and overhead. Everything else is added on to that, including the use of the facilities for a ceremony, embalming, the casket, the use of a hearse, and more. Choice Mutual has a helpful funeral cost calculator that lets you see a breakdown of the most common and non-negotiable funeral expenses, and it lets you add on the optional ones like a burial vault.
Know Your Rights
Most funeral homes have high standards of professionalism, but like in any industry, there are exceptions. To guard against unethical business practices, the Federal Trade Commission instituted The Funeral Rule in 1984. Under The Funeral Rule, consumers have the right to:
● Pick and choose services, rather than commit to an entire package. For example, you do not have to buy embalming services in order to buy a memorial service.
● Receive a written, itemized price list when you visit a funeral home.
● Get price information on the telefone without having to disclose your personal information.
● Buy a casket or urn elsewhere and provide it to the funeral home.
● Get an explanation in writing from the funeral home that describes any legal cemetery or crematory requirement that requires you to buy any funeral goods or services.
Read the rule for the complete list of your rights. Also keep in mind that while some funeral homes may have a policy requiring embalming for a viewing, this isn’t required by law in most states. Also, the funeral home may offer private family viewing without embalming. In general, when considering the funerary services you need, consider both the law in your state and the funeral home’s policies. If you can’t get the services you want with that business, you might be able to find another one nearby that can meet your needs at a reasonable price.
Consider Alternative Options
One important way to save money is to forgo a funeral entirely and instead opt for a direct burial or direct cremation, in which the body is immediately buried or cremated without a funeral beforehand. The family may then host a memorial service in any desired location, either with or without the loved one’s ashes present. Direct burial significantly lowers costs because the funeral home provides fewer services. For example, in Florida, the average cost of a direct burial is $5,200, and the average cost of a direct cremation is $1,691, compared to $8,023 and $6,103 for a funeral with burial or cremation, respectively.
Another way to lower costs while also reducing the environmental impact of funerary services is green burial. A green burial eschews embalming and metal material that prevent a body from decomposing. Green burial can cost between $500 and $5,000, but averages about the same as a direct burial, according to Choice Mutual. That’s because, while a green burial incurs some of the same costs as a traditional direct burial–e.g., the cemetery plot, remains removal and transfer–you’re not paying for a casket, usually a cost of $3,500 or more. Plus, according to the Green Burial Council, a traditional burial produces about 250 pounds of carbon, while a green one sequesters about 25 pounds.
Paying dearly and unexpectedly for funeral expenses right after a loved one’s death can feel like the epitome of adding insult to injury. Remember: even a modest amount of research can make a big difference for your family. And you don’t have to pay ahead to plan ahead.
https://www.bankrate.com/insurance/life-insurance/average-funeral-cost/#average-funeral-costs-by-region
https://www.mainepublic.org/climate/2023-02-24/death-has-a-big-carbon-footprint-maines-first-conservation-cemetery-offers-an-alternative
