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How Much Does a Funeral Cost?

Personal Finance
retired couple at home researching the question: what does the average funeral cost?

Planning your own funeral might not be something you want to do (or even think about). Yet, it often becomes top of mind when you are arranging a funeral or attending a service for a loved one who has recently passed away. You might realize that someday it will be your turn.

Consider looking past this morbid thought and shifting into compassionate planning, which could help free your loved ones of financial worry and ensure that they can afford to carry out your final wishes someday. Here, we will examine the average funeral cost and learn more about the various ways you could plan for the future.

The Cost of a Funeral

The national median cost of an adult funeral with a viewing and burial, according to the National Funeral Directors Association (NFDA), was $7,848 in 2021, an increase of 6.6 percent over the past five years. Those who chose a cremation and viewing paid a median cost of $6,970 in 2021 (11.3 percent higher than 2016) — and that does not include burial or storage of cremains.

Personalized Funerals & Special Types of Burials

few decades ago, funerals were somewhat standardized, especially for members of mainstream religions. Personalization has recently become a trend, and you might want your personal passions or hobbies to play a role in your funeral, viewing or burial. There are also movements toward "green" burials (emphasizing simplicity and environmental sustainability), burials at sea and other forms of burial.

Creating a Final Arrangements Document

All of these things could affect the average funeral cost — and this could be a heavy burden on your loved ones if you don't plan ahead. Some experts suggest you  write down the details of what you want  in a final arrangements document, according to The Balance. Don't just file this information with your will or trust, as this document might not be read until after your funeral arrangements have begun. Give your instructions for your final wishes to a trusted friend or relative, such as the executor of your estate.

Paying for Your Funeral & Pre-need Planning

When it comes to paying for your funeral, there are multiple options you can consider. A life insurance policy could be a suitable choice, as there are various types of life insurance that could be used to pay for your funeral and burial.

Many states also allow funeral homes to offer a service called "pre-need planning." You select all of the particulars about your desired service and then pay for it outright or via a trust or life insurance policy. A prearranged funeral could help make planning easier for your loved ones — and using a payment method like life insurance to pay for your final arrangements could help ease any financial worries. You may need to arrange for your burial separately, so it might be good to discuss funeral and burial costs with the funeral director.

Key Questions to Ask About Prearranged Funerals

And if you select this option, consider asking the following questions:

  • Is the money kept in trust (or in a life insurance policy) until it is needed?
  • Is the money ever refundable?
  • Are the costs "locked-in" or will they increase through the years (and need to be paid after you've died)?

And, of course, you may want to conduct due diligence to ensure the funeral home is in good standing and trustworthy.

Consider Opening a POD Account

You also might consider opening a dedicated bank account. The terms differ a bit among banks, but basically a payable on death (POD) account could allow you to set aside money specifically for your funeral and burial/cremation. A POD account could be a good idea for all of your bank accounts, as it would prevent your liquid accounts from being frozen for those who will need to manage your money after you pass. When you die, the beneficiary you name collects the money so they could then immediately pay the funeral home and/or cemetery. Remember that average funeral costs may increase between the time you establish the account and when the funds are needed.

No one wants to think about their own passing — or earmark money for it — but doing so could give your survivors financial security and help ensure that your final wishes are carried out.

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Information provided is general and educational in nature, and all products or services discussed may not be provided by Western & Southern Financial Group or its member companies (“the Company”). The information is not intended to be, and should not be construed as, legal or tax advice. The Company does not provide legal or tax advice. Laws of a specific state or laws relevant to a particular situation may affect the applicability, accuracy, or completeness of this information. Federal and state laws and regulations are complex and are subject to change. The Company makes no warranties with regard to the information or results obtained by its use. The Company disclaims any liability arising out of your use of, or reliance on, the information. Consult an attorney or tax advisor regarding your specific legal or tax situation.