There are two pieces to developing a final plan. The first piece is the design part, where you consider your options for final needs, decide on services that best fit you and your family, and build your funeral plan. The second piece is setting the stage to implement the plan, including determining a manageable way to cover funeral costs.

How Much is a Funeral?

The average cost of a funeral and burial in the United States is over $10,000, but the range in funeral expenses is substantial depending on location and chosen services. The average cost of a funeral, before including burial costs, is in the $7,000 range. Those that preplan wish to protect their family from the burden of planning and coming up with thousands of dollars to cover final expenses.

How can you cover a future funeral expense?

  • Funeral Fund: Keep enough cash on hand to cover funeral payments. As importantly, ensure your next of kin is named on the account so that funds can still be accessed upon your death.
  • Prepaid Funeral Plan

Many funeral homes offer prepaid funerals. In this instance, you:

  • Choose a funeral home for your funeral services.
  • Design your final plan.
  • Get a funeral price quote.

Then, you make an agreement or contract with the funeral home to provide that funeral service at the time of your death in exchange for one or more funeral payments made according to the agreement. Often, funeral homes offer today’s price for services under the agreement, even though funeral costs are sure to increase by the time of the funeral. This offers a cost savings to you and your family on the funeral expense, but an opportunity cost on the money paid at this time.

Funeral Insurance

Funeral Insurance or final expense life insurance is a life insurance policy sold by an insurance company in conjunction with a funeral home. As with other insurance policies, you pay small monthly amounts on a policy for a contractual return. In this case, the return is the amount of money necessary to cover funeral expenses. Funeral cost is estimated and a life insurance policy is written to cover that expected amount.

If funeral costs are less than the payout on the insurance policy, families receive additional funds. If funeral costs are higher than the payout on the policy, your family must pay additional final expenses. A final expense plan is designed to pay quickly upon death so that funds are available in time for a funeral, and families needn’t worry about funeral expenses.

Help with Funeral Expenses

When cash is not available to cover funeral expenses, and you have not arranged a prepaid funeral or funeral insurance, your loved ones must come up with funeral payments.
Protect your family from this burden by arranging payment of funeral prices today.

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