How to Reduce Funeral Costs

Reduce Funeral Costs

Funerals are extremely expensive. You will want to know how to reduce funeral costs while planning the funeral that you want.

Average cost

According to the National Funeral Directors Association, the average cost of a funeral and casket in 2010 in the United States was about $6,000. This doesn’t include the cost of a vault, cemetery plot, monument or marker and miscellaneous costs such as flowers and obituaries.

Cost reduction

Preparation and dressing of the decedent can be done at home.
Individuals may be able to transport the decedent.
Many funeral homes and crematories offer direct burial and direct cremation which provide the minimum level of death care required. Costs like caskets, embalming and viewing are bypassed.
Cremation tends to be less expensive than burial because there are less products and services involved.
Certain products and services are not required under certain circumstances. Ex. A casket is not required for cremation. Ex. Embalming is not required when there is no viewing and disposition occurs within 4 days typically. Ex. Some cemeteries might not require a casket or a grave liner.
Products and services can be purchased outside of the funeral service provider. Ex. You can buy a casket or urn online.
Certain products and services can be obtained from multiple vendors. Conversely, a package may be a good deal.
Non-profit memorial societies work with death care providers to create fixed-cost packages. For example, the Funeral Consumer’s Alliance has 140 chapters across the United States.
All funeral service providers offer pre-paid plans at today’s prices. But pre-paid plans may create complications if your circumstances change.
Individuals can handle the death related paperwork.
Social media can be used in lieu of the traditional newspaper obituary.
A memorial service can be held after disposition to avoid the cost of immediate travel. Bereavement fares are a thing of the past.

Finance options

Save for funeral expenses in a joint savings account or certificate of deposit. The account should be shared between the deceased and the person arranging the funeral so that the money can be accessed before the estate of the deceased is settled. This is a very effective way to plan for funeral expenses.
Set up an Informal Trust or Totten Trust. Also known as a “payable on death account,” this type of bank account is used to set aside money for funeral costs. A beneficiary is named when the account is opened. Upon the death of the account owner, probate is bypassed and the account balance is paid directly to the beneficiary.
Purchase insurance for funeral expenses. There are several insurance options available. A Funeral Insurance policy is usually issued in an amount less than $15,000 and is paid to a beneficiary prior to probate. Funeral Home Insurance is purchased directly from a funeral home and is tied to goods and services to be used for a funeral. Lastly, a Life Insurance policy can be used for funeral expenses. Since the policy amount for Life Insurance may exceed the cost of the funeral, the beneficiary should be instructed on how much is intended for funeral costs.
Purchase a pre-paid plan from a funeral service provider. These plans can be purchased in installments.
Get a consumer loan from a financial institution. Be aware that consumer loans require good credit and can have a high rate of interest, especially if unsecured.

Military benefits

Military cemetery: The U.S. government provides veterans to be buried in a military cemetery. In addition, it provides allowances for funeral expenses and burial outside of a military cemetery. The amount of the funeral allowance depends on whether the veteran was at a VA hospital at the time of death. For complete information, see the Department of Veterans Affairs website.
Military Funeral Honors: The Department of Defense (DOD) has a program to honor present and past members of the armed forces with Military Funeral Honors. It gives veterans the right to a ceremony that consists of the folding and presentation of a U.S. burial flag while Taps is being played by bugle or recording. At least two uniformed military personnel will conduct the ceremony, with at least one of them representing the Veteran’s branch of the service. Funeral homes, the Department of Veteran Affairs and veteran organizations can assist with the honors ceremony.
Resources: The Department of Defense has provided a useful website called Military Funeral Honors that describes the history and significance of Military Funeral Honors and gives detailed information about eligibility.

Financial assistance

Social Security: The Social Security Administration provides a one-time death payment of $255 (2010) if a deceased person has a surviving spouse or surviving children under the age of 18.
Military: For veterans of military service and those still in active service, the Veterans Administration has a variety of burial benefits available. Basic benefits include a gravesite in a national cemetery. There are also some allowances provided for funeral expenses. For example, when death is due to a service-related injury, there is an additional allowance.
Charitable organizations: Local churches, service organizations and charities often have funeral funds available for those who were active members. If the non-profit organization has a cemetery, it may offer some spaces at low or no cost.
211: In many areas, 211 is a resource for health and human services. Dial 211 and ask for funeral expense assistance or search online for 211 by state. Each state in the U.S. has programs that provide funeral funds for low income members of the population. Many counties and cities also have funeral fund programs.
Donation to science: Donating the body of a deceased person to science through a program like Science Care will benefit society as well as defraying the cost of a funeral and burial. Cremation is often provided free of charge, with ashes returned to the family.
Resources: For additional information about funeral cost assistance programs, search online for “burial assistance” by state or county.
Fundraising website: It is increasingly common to see requests for funeral funds in obituaries and on memorial websites. The requests refer the viewer to websites like GoFundMe. However, these requests may only be successful for deaths under dire circumstances.

Bereavement Fares

Airlines: Many airlines attempt to address last minute funeral travel by providing what is known as a bereavement fare. Discount airlines typically do not.
Cost savings: A bereavement or compassion fare is a discount provided to family members who are traveling for the death or terminal illness of a loved one. They sound like the perfect solution for emergency travel. However, a full price ticket bought with a bereavement discount will usually cost more than a sale-priced ticket. According to Rick Seaney of ABC News, the average bereavement discount from one of the major airlines like United or Continental is only 10% off a full price ticket.
Alternatives: Before buying a bereavement ticket, it pays to inquire about available sale-priced and discount tickets for your destination. Another way to save money on emergency airfare is find out if there are vacation packages available. A package offering airfare plus hotel and car may end up costing less than a bereavement fare. It might pay to consult a travel agent to help find an airfare that’s cheaper than a bereavement fare.
Proof: Airlines which offer bereavement fares have requirements that must be met such as direct relationship and proof of circumstances.

Resources

Your state’s funeral agency or commission: for answers to specific questions.
Online search: for specific funeral products and services as related cottage industries are emerging.