Mar 26, 2024
No one wants to think about their death or the death of a loved one, let alone plan for it. But when it happens, a funeral can come with a heavy financial burden if the deceased leaves no estate, no savings, and no plan.
The median cost of a funeral was $8,300 in 2023, according to the National Funeral Directors Association (NFDA).1 That doesn't count the cost of a cemetery plot or headstone, which might add thousands more to the total bill.
Paying for a funeral can be difficult, especially if you are grieving and have more pressing things to worry about. Knowing what to expect and how to finance funeral costs can help relieve the stress.
“There can be many decisions involved when planning a funeral for a family member or loved one,” said Fred Fiore Jr., a licensed funeral director for more than 30 years. “A funeral director will help guide family members through the funeral planning process step-by-step.”
The costs of a funeral commonly include paying for the services of a funeral director, the use of a funeral home, transportation of the deceased, embalming or other preparations, a casket or urn, and a headstone or grave marker.
“These costs vary depending on where you live, the type of service you choose, and whether you choose a traditional burial or cremation,” Fiore said.
For example, in many locations there can be several different costs related to burial or interment in a cemetery or a mausoleum. “People are often unaware of the additional cemetery costs involved with a burial,” Fiore said. “In many locations, there is one cost for purchasing the burial plot, but there could be additional costs.” For instance, in the U.S. most cemeteries require caskets to be placed in a grave liner or burial vault. There may also be costs for cemetery maintenance.
Even if the person has prepaid for the funeral itself, additional costs might apply. For example, prepaid funerals may not include the cost of a cemetery plot or a headstone.
The number of Americans choosing cremation has risen in recent years. That trend is expected to continue. More than eight out of 10 Americans (81.4%) are expected to choose cremation by 2045. This increase is largely due to environmental concerns, cost considerations, and changing consumer preferences.2
While the cost of cremation depends on many factors, the typical cremation can be less expensive than the average cost of a funeral and a burial ceremony. The median cost of a funeral with a viewing and then a cremation in the U.S. in 2023 was $6,280. In contrast, the median cost of a funeral with a viewing and burial was $8,300.1
“With cremation without a service, you do not have to purchase a casket and you can save on the costs of a burial plot,” Fiore explained. The cost of a casket can be one of the larger burial expenses. The median cost of a metal casket in 2023 was $2,500.1 The price can increase further depending on materials and customization.
Beyond the major expenses of a funeral, other costs can add up quickly. Here are some of the additional products or services you might need or want:
If you host a reception, catering fees and a rented location might also add to the total bill.
Even after the funeral, you might need to pay to settle your loved one’s estate. For example, before any beneficiary can receive an inheritance, the estate may need to go through probate. Probate is a legal process that confirms that the will is valid and appoints an executor to administer the estate. The executor’s duties may include distributing assets and paying any outstanding debts from the decedent’s assets.
Depending on where you live and the value of the estate, the process might involve opening a legal case, administering the estate, and closing the estate. It may be helpful to seek professional advice to determine what you need based on your situation. For instance, you may want to consult a lawyer who specializes in probate and estate administration.
This process might take many months and you could incur additional expenses for things like:
One of the goals of estate planning is helping your family prepare for the future. But planning and making your wishes known ahead of time may also ease some of the burdens on those left behind. Estate planning may also provide a plan to preserve your assets and protect your beneficiaries from costs and paperwork.
If your property and finances are complex, estate planning may involve different advisors, such as lawyers, accountants, or tax professionals. Through estate planning you can decide how you want your assets managed and distributed after you die.
Your will is one part of estate planning. Depending on your personal finances, your plan may also include setting up trusts for different beneficiaries. There are also free online tools you can use to write a basic will. If you decide to use an online will template, consider working with a trusted individual who can help you through the process.
You may also document your desired funeral arrangements as part of your estate plan. Pre-planning for a funeral, or making -arrangements in advance, might make the process easier for surviving loved ones, as many of the decisions have already been made.
"Pre-planning may also involve paying for some funeral arrangements in advance. You will want to be confident, though, that the business will still be around when the time comes. If you do choose this option, it might lower the financial burden for the family," Fiore said.
“One of the benefits of pre-paying for funeral costs is seeing the possible costs and different options up front,” he said. “You can choose the type of service and other details you may want in advance. It makes it easier for loved ones because there is already a plan to follow, and they know the wishes of their deceased loved one.”
If the deceased did not have life or final expense insurance, also known as funeral insurance, it may be more difficult to settle the estate and pay for funeral costs.
If there is money and property to be distributed, a court may need to appoint an administrator to oversee the estate, then to be responsible for distributing the assets of the estate according to state law. The survivors and estate administrator are under no obligation to pay for funeral costs if they don't want to—those would be paid from the deceased’s funds.
Without a will or executor named, the probate process can take several months, or even years, to complete. During this time, the court-appointed administrator is responsible for managing the estate and paying any debts and funeral costs from the estate’s assets.
If the deceased leaves an estate or savings, those funds might be used to pay for a funeral. In other cases, there are several options to consider when planning for your own funeral or paying for a loved one’s.
Life insurance policies may also be used to pay for a funeral. The death benefit from any type of life insurance, including term, universal, and whole life, can be used for funeral expenses. But note that the beneficiary of these funds is not obligated to use them for the funeral.
Another option is purchasing a funeral or burial insurance policy, which is usually a whole life insurance policy with a death benefit. Funeral insurance policies can cover costs for one person’s funeral or expenses for multiple family members.
U.S. military veterans may be eligible for burial benefits through the U.S. Department of Veterans Affairs (VA). Benefits may include help paying for funeral costs, including burial and a service in a VA cemetery.
In some locations, community assistance may be available through charitable or religious organizations. In some states, help with funeral expenses may also be available based on financial need.
Credit cards may be a convenient form of payment for many people. You may prefer not to increase the amount you owe on a credit card, however. Credit cards have variable interest rates, so if rates increase, you could end up paying more. They are also a form of revolving credit. That means that if you don’t pay off your balance in full every month, you could end up paying a lot in interest.
One convenient option to help pay for funeral costs may be a funeral loan. A funeral loan is a personal loan you take out to pay for burial costs. It is a type of unsecured loan that can be used for multiple expenses. It may be an option that works well for you when you need money fast.
A personal loan might be a good option to pay for funeral costs. But with the emotions surrounding a death, it is important to consider it carefully. To help make the decision, review your budget carefully and weigh the pros and cons.
Many online lenders offer unsecured personal loans that you may use to pay for funeral costs. With Discover, you can see what your loan rate and set regular payment could be before you apply, with no impact to your credit.
Be sure to do your research and compare multiple lenders to find the best loan for your situation. Keep in mind that you should know the total cost of borrowing and whether you can afford the monthly payments. Review the loan terms and check for any additional fees that could add to the total price of your loan. With a Discover personal loan, there are no fees at all as long as you pay on time.
Also, pay special attention to the lender’s reputation. Customer reviews can give you a good sense of whether you are able to rely on a skilled and compassionate support team to help you through a difficult time.
Along with the anxiety and grief that comes with the death of a loved one, a funeral can create unwelcome financial stress.
That’s why it’s important to be informed about potential funeral costs and to plan for how to pay for them. If you don’t have the funds available, a personal loan might be the ideal solution.
Use our calculator to see what your monthly payments would be with a Discover personal loan.
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