Funeral costs are rising steadily since the 90s and there’s no end to it. Today, the average cost of a funeral is between $7000 and $10000. The quoted price does not include extra services. The funeral costs may exceed up to $20000 depending on how much add-ups you want.
The key is to save as much as you can on a funeral in the current times. You need to preplan and tackle it the right way. Everybody wants people to celebrate his life and remember him with a good name. How is this possible if your loved ones spend more time thinking how does a burial plot cost or how much does it cost to be cremated?
You should have a plan in an execution before you die. The strategy will help your family to smile rather than mourn at your death. The one dealing with all the financial matters will be burdened to a great extent if you just let the things be. One of the best strategies is to buy a Life Expense Insurance to manage all the funeral expenses.
In addition to that, the person on his deathbed can leave a will detailing how the funeral shall be planned and conducted. Preplanning is the most important phase. Keeping a small amount to manage your burial costs before your death will be good enough.
Breakdown of the Funeral Costs
People often ask what is the deciding factor when estimating the cost of a funeral. The burial plot and its location affect the funeral cost most. The cremation expenses have seen an increment of 227.1% in a past couple of decades. Here is a breakdown of how the average cost of a funeral is calculated.
- The funeral homes charge a basic fee for their service. Most of the funeral homes have quoted $2500 as their average price for the services.
- The caskets also cost about $2500 on average. They cost more depending on the material quality and colours.
- Body preparation is a very important task in funeral management. Some families want the body to be embalmed. The average cost of both is estimated at around $1000.
- The location of the burial plot has a significantly high effect on funeral costs. The better place you choose, the more expensive the funeral will get. On average, burial plot ranges in between $3000 to $4000.
- Some of the arrangements require transportation. The transportation service charges also range depending on where the body is to be taken. The transportation to a graveyard can cost you between $200 to $700. The price can further exceed based on your needs.
- The funeral ceremony is also a key factor in the breakdown of average funeral costs. The ceremonies cost more in case the arrangements are lavish. On average, the funeral ceremonies cost about $1050 in the US.
- You will have to pay a great deal of money to the funeral director if you are managing things through a funeral home. This can cost you about $1500. You can exclude this point if you are managing things totally on your own.
All the points highlighted above include the expenses at the time of the funeral. The points do not mention any end-of-life expenses. Your budget will lose its track if you have some end-of-life bills to pay off. Most of the people are not prepared for this kind of budget management if everything happens suddenly.
The shock if it can make you lose your nerves. You might have to get into debts or loans to deal with the situation in some cases. Also, the funeral costs vary according to the state you are living in. You might want to check in with a few local funeral homes before you lock on a few things.
How to Plan for a Funeral
Planning a funeral can be very overwhelming. We understand how emotional and stressful it might be, but it’s for the betterment of your loved ones. You might leave things unplanned but the time of your death may become more grieving for your family. Two shocks at once might provoke an unseen disaster.
Talking about your death and discussion of all the possibilities may prove beneficial to not just to your family, but you as well. You might have some wishes in your heart that they don’t know about. If you had it let that way, they might not have found it ever. The planning you do now will prove to be a stress-reliever in the long run. The only difficult part is opening up. You have to prepare them for two things once you say some emotional things. You might see someone crying but you have to go on:
- Make sure they know what kind of cost burdens they may face once you die. Tell them what you have planned or what they’ll have to do to prepare for the cheapest funeral cost.
- Tell them what you have to plan with your financial planner about the will and what you are leaving behind. Tell them about the very basics like how much does it cost for cremation. Give them a run-down of all the answers that your financial planner has given you and help them get ready.
Preparing for the Funeral Financially
The best way to save everyone from going into debts and loans is by securing yourself financially through insurance or planning through a pre-funeral. Money generally flows like water in case you haven’t signed up for insurance or bought a burial plot already.
Most of the people have enough savings to get them through the funeral costs process. However, a person might get in trouble if he has to encounter medical or legal expenses at the end of life. There can be a thousand things when speaking practically and they keep loading until they bring you down. There are a few insurance policies you might like to know of.
- A Final Expense Insurance pays a death benefit at the death of the policyholder along with a cash value. This is the best option if you are just looking to get rid of the funeral expenses.
- You can get term insurance if you want to leave additional money to your money along with the costs associated with the funeral. The term insurance remains active for a selected number of years. All you have to do is pay the premiums that add up to a lump-sum amount.
- Another option is to get the Whole life Coverage. Whole Life Insurance is much expensive than the other two. The premiums are higher because of the risk factor involved. You can purchase this policy if you have a high net-worth. The policy is also feasible in case you are leaving a dependent behind who has no-one expect for you.
The turnaround time for some insurances for paying the death benefit is very less, even a week in some cases. Final Expense Insurance is the best option for most of the people with no waiting period of 2 years. Two companies that you can lock on for their services without even blinking are Mutual of Omaha and AIG.
The right settlement will please everyone and let them be in their comfort zone. There’s no need for anyone to rush when you know everything’s planned. You can spend more time talking about life rather than worrying about it.
Will isn’t Always Enough
People often believe that what they might leave for their family will be enough once they die. They are quite confident that all the estate and assets will be enough to cover all the financial expenses. The expenses can be related to supporting them financially after death and managing the funeral and cremation costs.
This strategy is not always enough. In the legal world, your assets under observation through probate. The process evaluates all your belongings and hands it over to the beneficiaries. There’s a catch though. The evaluation revolves around all your investments, ownership and transfers. The process makes sure all the necessary debts and loans are paid first in case there are. The creditors are benefitted first and your dependents later.
Who is Affected?
People who do not keep a track record or check of their involvement may get caught in this. Subsequently, their planned strategy may fail. All your planning might crash right when subjected to probate. The dependents may end up getting very little or nothing at all when you had planned to leave behind an empire. However, the insurance policies are not subjected to the probate process and serve as the best alternative.
Your belongings might get entangled in the legislative process but insurance policies do not. It often takes a lot of time to get your left-behind clear the probate and reach your family. They have to suffice their way in getting through your burial process and managing the funeral costs. The Insurance policies save you from that trouble as well. The death benefit is paid off right at the death time ensuring the family doesn’t have to bear two losses at a time.