Whatever after-death arrangements you choose are going to cost something.
First, be aware that you or your family will be responsible for paying the bill. Take a realistic look at your budget before calling a funeral home. Decide what you can comfortably afford — without sacrificing money you need for daily living.
Second, if it’s your responsibility to make after death arrangements for a family member, remember that the amount you spend is not equal to the amount you love.
Third, the ins and outs of funeral home pricing can seem complicated.
Fourth, you’ve probably heard a lot about pre-paying for your funeral or cremation. It can seem complicated too.
IDEAS TO THINK ABOUT WHEN YOU’RE CONSIDERING COST: Choose a plan you can afford A “typical” funeral can cost $8,000 or more; some families spend tens of thousands of dollars. But a heartfelt, meaningful memorial need not bankrupt your family if you make economical choices. Consider these affordable options:
Direct cremation. The body is cremated shortly after death, without embalming, viewing or visitation. An inexpensive alternative container is used, rather than a casket. The ashes may be kept, buried or scattered, eliminating the need for an expensive burial vault or full-size plot. The cost could be as low as $800. You could have a ceremony or celebration in a place of worship or other venue with the ashes present shortly after cremation, or at a time when it’s more convenient for family to gather.
Direct (immediate) burial. By eliminating embalming, viewing and visitation, the family can save thousands of dollars over a regular funeral. Using an alternative container or plain casket can save thousands more. The burial vault, cemetery plot, and interment fees would be the most expensive component; expect to pay $2,500 or more. You could add to immediate burial a private family viewing of the body, and a graveside service in the cemetery.
Whole body donation. Donating your body to The U of M or Mayo anatomy bequest program is free, or involves a minimal charge to transport the body. The donor must complete the necessary paperwork ahead of time; the family cannot do so after death. Some medical conditions could disqualify a donor, be sure to check. Both Minnesota programs cremate and inter ashes at no cost to the family. Or the body or cremated remains may be returned to the family.
Home funeral. All but nine states allow the family to complete the entire funeral process by themselves without hiring a funeral home. This includes everything from filing paperwork to caring for and transporting the body. (All states allow the family to keep the person at home if death occurred there, to prepare the body, and to hold a vigil before calling the funeral home for removal.) The cost of a home funeral is minimal, and many find this a meaningful way to say goodbye to a loved one. Keep in mind: Additional costs will depend on whether the body will be cremated or buried following the home funeral. Arrangements with a funeral and cremation service should be made as soon as possible
Comparison shop Prices can vary dramatically among funeral homes for the very same items and services. Most funeral homes do not list their prices on their websites, but the busiest funeral and cremation providers in the Twin Cities area do. You can also go to the costs comparison website parting.com. Funeral homes are required to give you a price list if you ask for it in person, as well as give you prices over the phone. You do not have to provide any identifying information. Spending some time comparing prices could save you thousands of dollars.
Set aside resources If you can, set aside money for your own after death arrangements ahead of time, and spare your grieving family the need to make financial sacrifices after your death.
Savings. By saving even a few dollars a week, you can accumulate a nice sum to cover your final arrangements. Upon your death, however, the funds will be held up for months while your Will is probated. Your family could ask if the funeral home is willing to defer some of the charges until probate is completed. To avoid such delay, you could set up a joint account with a trusted family member “with rights of survivorship.” That person can withdraw the money after your death to pay for your arrangements.
Open a Payable on Death account (POD) at your bank. This special type of bank account ensures that the funds you set aside for your funeral will be released immediately after your death to the beneficiary you name. Unlike a joint account, the beneficiary cannot touch the money while you are alive. These accounts are FDIC-insured, and you can withdraw money any time. Add to the account when you can afford to set something aside.
Pay cash Most families will use cash, check or credit card to pay for all or part of the funeral expenses. Most funeral homes today expect payment in full up-front. Sometimes you can pay a portion using an installment plan negotiated with the funeral home.
Get help
Employer. Some companies have survivor benefits available for the family of the deceased. Also, some unions may offer benefits to help cover or defray funeral costs.
Veterans’ benefits. All eligible veterans are entitled to burial in a national cemetery, with no charge for the gravesite, headstone, vault and interment. The family is responsible for all other charges. The VA makes additional burial allowance payments in cases of death during active duty, from service-related injuries, in a VA facility, or when veteran was receiving a VA pension or disability. Veterans’ spouses and dependents are also entitled to some burial benefits.
Fundraising. Churches, businesses, clubs, and other groups sometimes help raise money to defray the costs for funerals for those in need. In some communities it’s customary to hold special events, car washes or bake sales to help families with these expenses. You could also try crowd-funding websites like GoFundMe, which allow individuals to set up pages to request donations.
Borrowing. We believe that no one should go into debt to bury or cremate a loved one, and strongly advise against taking out a loan. Most ordinary lenders are reluctant to finance funerals. But some special loan companies offer their services through funeral homes. If your credit is good, you can borrow up to $10,000 with interest rates of about 15%. But borrowing money to pay for funeral costs should be a last resort only, after all other avenues have been exhausted.