Not sure how you or your family will pay for your final sendoff – or what it will even cost? You’re in good company: Most people haven’t financially planned for their funerals.
Avoiding this topic is understandable; mulling over the details of your death can seem unpleasant. In fact, a study conducted by the National Funeral Directors Association (NFDA) found that while 62.5% of Americans recognized the importance of planning for funeral expenses, only 21.4% have made appropriate arrangements.
Discussing death may be tough, but saddling your family with unanticipated expenses when you pass away is harder. Understanding the average funeral cost and doing some basic planning now can ease a significant burden for your family and give you peace of mind that your funeral expenses will be fully covered. Read on to learn the answers to common questions about funeral expenses and tips on preparing for your own.
How much does the average funeral cost?
What is the average cost of a funeral in your area? Funeral costs typically vary by region, provider, and the type of service you choose. According to an NFDA study, the average cost for a funeral with a burial and vault is $9,135. Bear in mind this estimated cost doesn’t account for additional items like monument markers, a cemetery plot, reception costs, flowers, obituary placements, and other items you and your family might choose.
Breaking down the average funeral cost
While many funeral homes offer similar packages, there are quite a few options that will affect your total price tag. Each of the following fees contribute to the overall cost of a funeral
Average planning fees
Most funeral homes charge a required fee to cover basic administrative expenses. This fee comes in at around $2,200 on average.
Service Fees
Funeral homes also charge for services like transportation to and from the funeral home, embalming, and equipment and personnel required for graveside services. Costs vary, but can range into thousands of dollars. When tallying up the costs, remember that embalming isn’t actually a legal requirement for burial or cremation. However, most funeral homes require embalming if you plan to have a public open-casket viewing.
Merchandise fees
Products like flowers, grave markers, and keepsakes used during the funeral and burial can make your service more expensive. Typically, caskets are the most costly item families will purchase during the funeral process, ranging from $2,000 for a basic model to $10,000 or more for some mahogany, bronze, or copper models.
Facility rentals
Funeral service providers typically allow families to use their facilities for viewings and services. If you hold your service in a funeral home, the funeral home will add that fee to the total funeral cost. If you decide to host a service in a church or other gathering space, you may also need to pay a fee there.
While the list above covers some of the most common and significant funeral expenses, it’s not exhaustive. Check out the Federal Trade Commission’s funeral expense checklist for a complete funeral cost breakdown. You can use the form provided to collect prices from funeral homes in your area and compare options to see which fits your budget best.
What is the best way to prepare for funeral costs?
There are several simple ways to prepare and plan for funeral expenses. First, pre-planning with your preferred funeral provider can help you understand the exact costs of carrying out your final wishes. Once you crunch the numbers, you can make important financial decisions about how to cover the expenses. Your options include the following:
Consider a life insurance policy
Using life insurance to cover funeral costs is one of the easiest and most reliable ways to cover your funeral expenses adequately. For a small monthly premium, your life insurance provider will provide a lump sum of cash called a death benefit to your designated beneficiaries if you die while the policy is active. Your family can use this payout for whatever they like, like paying for outstanding bills and funeral expenses. Because term life insurance policies eventually expire, you may want to consider a permanent policy to guarantee the money will be there for your family no matter when you die.
Look into final expense insurance
Final expense coverage is a life insurance policy designed to help older adults cover everything from funeral costs to outstanding medical bills after a death. These policies come in smaller coverage amounts than other permanent policies, making them relatively inexpensive with easy approvals. For example, Fidelity Life’s RAPIDecision® Final Expense plans can provide up to $40,000 of coverage with no medical exams required and same-day approvals, in many cases.
Create a will
Even if you own very few assets, it’s a good idea to have an updated will. A will that clearly outlines how to use your estate to pay for funeral costs can protect your loved ones from bearing this expense. While many people use proceeds from an estate to pay for funerals, this approach has some pitfalls. It can take months to settle someone’s affairs fully, which means your family could end up waiting on the funds they need. In contrast, life insurance plans typically pay out within days once your life insurance company receives and approves the claim.
Find the right life insurance to cover the cost of a funeral
While funeral expenses vary, the average funeral today can cost your family more than $9,000. Taking the time to understand those costs and prepare for them can ease financial burdens for your family later on.
FAQs about average funeral costs
Are funeral costs tax deductible?
According to the IRS, funeral costs are not tax deductible for an individual taxpayer. However, a family may be able to use tax-free proceeds from a life insurance policy to cover funeral expenses. A financial or tax professional is the best person to advise on the tax implications of a funeral.
What is the biggest expense of a funeral?
If you’ve chosen to do a burial instead of cremation, the largest expense is often the casket. According to the NFDA, the price of a metal burial casket was around $2,500 in 2021.
Who pays for a funeral if there is no money?
If the deceased does not have sufficient funds to cover funeral expenses, the cost often falls to the family. Having a final expense life insurance policy in place can ensure loved ones won’t need to come out of pocket to cover funeral expenses.
We know sometimes it’s easier to speak with an expert, and that’s why we’re here to help. Our team is available to answer your questions and help you compare final expense or life insurance plans to find your fit. Give our agents a call or start your quote online today.
At Fidelity Life, our goal is to make life insurance simple, affordable, and understandable for everyday families. This content is intended for educational purposes only. Each post is carefully fact-checked, reviewed, and updated regularly to ensure the information is as relevant as possible.
