How Much Does a Funeral Cost?

Funerals are a major expense, but many people choose not to think about it before it becomes a necessity. It’s certainly not difficult to understand why – we’re humans, after all – but given the reality of uncertain conditions, maybe it would be better to plan for the costs of a funeral in advance.

Perhaps the most important thing is that when an individual gets insurance coverage, all the financial burden is on them, not on the family. While funeral costs may appear astonishingly high, there are also other financial aspects to consider, i.e. outstanding debts or medical bills.

No matter how gloomy the fact may appear, the truth is that final expense insurance, if secured at a reasonable age, is an affordable option to save for the costs of a funeral.

Funeral Costs

Because funerals incorporate customizable activities, it is difficult to estimate their costs. However, the average stands between $7,649 and $9,1351, depending on the choice of services and activities. The price includes funeral home services, a cemetery burial and headstone installation.

According to the National Funeral Directors Association (NFDA), the average cost of a funeral rose 28.6% – from $5,582 to $7,640 – between 2004 and 2019. In comparison, the average funeral cost rose by 87% between 1980 and 1989.2

These rates are high and likely to get higher (as a grim saying goes, “Death is never out of business”). Funerals are a lucrative business, sad to say, but the costs are often times less difficult for the family than the emotional distress.

Burials are currently more common than cremation, but cremation is rising as an option. The reason lies partly in the fact that cremation is cheaper than a burial. The NFDA statistics show that the average cost of a funeral with cremation is $5,150, as opposed to the average cost of a funeral with a burial ($7,640).

Here’s a breakdown of average funeral costs:

  • $1,500 fee for the services of the funeral director
  • $350 for the transfer of remains
  • $750 for embalming
  • $255 preparing of the body
  • $2,500 casket
  • $925 for using the funeral home
  • $340 hearse
  • $150 service vehicle
  • $175 printing package
  • $1,500 for a headstone
  • $1,000 for a grave liner3

Prices vary from state to state; the figures above represent average prices. Then add other costs, like the obituary and the flowers.

Given these facts, it’s only reasonable to start budgeting for a funeral in a timely manner. Sticking to the averages is not a good idea, though, as additional costs and inflation should be taken into consideration. Merely the rise in the annual prices, as mentioned above, shows that funerals are only getting more expensive with each passing year.

Because these sums are not to be taken lightly, people are turning to pre-planning options such as final expense insurance or pre-paid funerals through funerals homes.  Unlike pre-paid options, final expense insurance allows for flexibility. The funds can be used to cover whatever the beneficiary chooses. Today medical bills can be even worse than the cost of a funeral, for example at the age of 65 the average healthcare costs are $11.3k per year.4

 

Final Expense Insurance

Planning is the key. Saving money is always a good idea, but final expense insurance is even better. That way, you don’t have to think about an account or leave money aside. The costs of insurance packages depend on the age of the insured person. Naturally, the older the person is, the more expensive the insurance. Average prices range from $30 to $705 per month.

Final Expense Insurance follows the same logic as other insurance types. The younger and healthier the insured is, the lower the premium. Some insurers require a medical exam, but this is not a common practice. Make certain to compare offers, as funeral insurance policies vary greatly from insurer to insurer. If you’ve ever researched health insurance plans, you’ll know that some common diseases (like diabetes) are a huge minus, and the same logic applies to life insurance policies.  

 

Conclusion

Funeral costs are high and getting higher by each passing year. The sooner one starts budgeting for a family member’s funeral, the lower the costs. Whole life insurance is one way of covering funeral expenses while also providing the flexibility to support other needs and is, as such, a great choice for families.

In that light, whole life insurance may be a good idea, because premiums are fixed and not affected by inflation. However, what each person will choose is ultimately up to them. It is important to think about it in a timely manner, however. Death comes to us all, and in the absence of final expense insurance or other provisions, family members will have to bear the burden of the funeral cost. If you’re wondering whether funeral insurance is the right choice for you, call 844-282-2894 to talk with an expert, or visit our Final Expense Life Insurance page.

 

1 NFDA 2019 General Price List Survey. National Funeral Directors Association. Brookfield, WI.
2 NFDA.org, 2019 NFDA General Price List Study Shows Funeral Costs Not Rising As Fast As Rate of Inflation.
3 NFDA 2019 General Price List Survey. National Funeral Directors Association. Brookfield, WI.
4 RegisteredNursing.org, Here’s How Much Your Healthcare Costs Will Rise As You Age.
5 IHLIC.com, How Much Does Final Expense Insurance Cost.