"A man’s dying is more the survivors’ affair than his own." ~Thomas Mann, The Magic Mountain
Funerals are expensive purchases, and they now represent the third-largest expenditures that most families will make in their lifetimes. Only our homes and automobiles cost more. Therefore, preplanning your funeral is not only an intelligent choice, but it is also considerate for survivors.
Of course, when a loved one dies, the last thing on our minds is money. And only later, as grief-stricken survivors, will we realize that dying can become very expensive.
No one likes to think about death, let alone plan for it. A lack of communication can be costly because making funeral arrangements generates a complex mixture of emotions in most of us. For example, some people overspend on a funeral because they think the type of service is a reflection of their feelings for the deceased. Many people do not realize the cost and heartache it causes their loved ones once they pass. "There’s more psychological baggage surrounding death than any other life experience—even sex. And that’s why we pay a high price, says "Karen Leonard, researcher for the book, The American Death Revisited."
However, a pre-need contract can be set up with a funeral director and pre-funded through life insurance, bank trust agreement, or another method. In fact, many people purchase a life insurance policy with a small face value, specifically to cover funeral expenses. Yearly premiums are easier to handle, often in monthly installments with carrying charges built into the cost. This type of affordable policy grows at the same rate as a permanent life policy, and it is not considered taxable income. Another option is renewable term insurance, which may provide the most death-benefit protection. Pre-planning can give you peace of mind by knowing your arrangements are ready and pre-funded. And, by pre-funding your funeral, you will know you have arranged for funeral expense protection, in case the need arises before it is expected. Furthermore, funeral costs will remain the same as when they were initially planned, even though there are cost of living increases. And by pre-funding, you can be sure your loved ones won’t overspend or disagree with each other. Your final wishes will be your choice. You can have control over the decisions relating to your death—the disposition of your body, the funeral or memorial services, and even what your obituary says about your life.
The following expenses are typically part of the costs:Furthermore, there are also extra costs for optional goods and services, which may be listed under such headings as "Cash disbursements". These expenses may include costs such as transporting the remains, embalming and other preparation, use of the funeral home for viewing, ceremony or memorial service, use of equipment and staff for graveside service, use of a hearse or limousine, a casket, outer burial container or alternate container and cremation or interment, a vault, prayer cards, and temporary grave marker, stationary, flowers, cemetery plot, obituary, death certificates, honorariums and a headstone.
A specific funeral home will not necessarily list the charges in this way; they may have more or fewer categories, and the actual value of the services will differ from one firm to another. However, the above list will give you an idea of how many different costs there are in a typical funeral, and how quickly they add up. Talk to a local funeral home where a funeral counselor will offer to help you and figure out what fits your budget. This funeral counselor should be willing to discuss all of the options that are available to you. Ask about package deals. Find out if the merchandise costs are the same from different mortuaries. Make sure you know what you are buying. As for financing the funeral, you can set up your plan on payments if you do not have the money all at once. However, these bills can take years to pay off and may cause you to have difficulty meeting monthly expenses.
The Federal Trade Commission has a "Funeral Rule" which requires mortuaries to present a price list of services to consumers before showing them merchandise such as caskets. They also provide an overview of costs, which is available online, entitled Funerals: A Consumer Guide. Also, there is a national consumer advocacy group called: Funeral Consumers Alliance, which can be reached online. Joshua Slocum, the Funeral Consumer Alliance’s executive director explains, "Most people choose a funeral home for all the wrong reasons. It may be close to their house, or have served their family well in the past. However, the range of prices offered by funeral homes for comparable services is incredibly wide." In fact, there are over 20,000 funeral homes in the United States, accounting for over $25 billion in annual revenue.
Even if you are the type of buyer who likes to find bargains, you are probably going to feel uncomfortable comparing prices and negotiating deals that involve the costs for a funeral. In many families, discussing one’s mortality is an extremely uncomfortable topic. However, it is important that all the family members talk about death and know what kind of funeral each person wants to have. For example, you need to know if your loved ones want to be cremated quickly, with no ceremony, or if they want a large funeral.
You can save hundreds or thousands by using as few services from the funeral home as you can manage. For example, you don’t have to get a casket from the funeral home. Try going to a wholesaler or online, and shop around. Many survivors don’t want to shop because they consider bargain hunting an affront to the deceased. However, a couple of quick calls to compare prices can help you to save a lot of money. The same is true about flowers and hearses. For example, a hearse that normally costs about $25.00 an hour to rent may be billed at $200.00 an hour. Check a rental car company for prices on a hearse and limos. Go to an outside florist for your flower arrangements. Flowers that should cost about $25.00 are sold for about $150.00 when they are designated for a funeral.
The disadvantage is that you are going to have to do the work that the funeral home would have normally done.