Despite rising at a slower pace than inflation, the average burial cost usually increases each year. According to a National Funeral Directors Association (NFDA) 2023 Member General Price List Survey, the median funeral for burials and viewing was $8,300, an increase of 5.8% from 2021 to 2023. Life insurance is a great way to fund funerals, but there are other options available, including strategies to reduce funeral costs.
What is the average funeral cost?
The average funeral costs multiple costs for the goods and services. According to the Federal Trade Commission (FTC), there are several fees that contribute to funeral costs.
- Basic service fee: This is the standard service charge associated with funerals. This covers planning fee costs, including permit and administrative fees.
- Services and Product Prices: These cover body transport, preparation, preservatives, funeral home fees for viewing or memorial, equipment and services needed for cemetery services. You will also need to pay for the cas or burial containers or services required for cremation or intervention.
- Cash Advanced: These fees are for services that the funeral home may handle for you, such as a funeral home, a clergyman, or an organist. Additional service fees or markup prices may be paid to consider the funeral home’s efforts, but additional fees must be disclosed in writing.
According to Lincoln Heritage, the average cas costs between $2,000 and $5,000, while premium cases such as Promethean Bronze cost up to $22,000.
Some buyers will buy cas independently to avoid third party markup. However, you are responsible for shipping your cas to the funeral home, which can be expensive. If you choose to cremate, you can avoid the cost of a new cas. Most funeral homes rent cas to use if you have other burial plans, as a more cost-effective option if you are holding viewing or using for a funeral.
Decomposition of funeral costs can help you determine which services you really need and establish a realistic budget for your future funeral. According to NFDA 2023 data, below are some of the average funeral costs you may have.
- Funeral Fee: $2,495
- Funeral Home Rental: $475
- Funeral Home Staff for Viewing: $475
- Ceremony Funeral Home Staff: $550
- Cosmetics Service: $295
- Vault: $1,695
- Preservatives: $845
- Cremation: $400
- Alternative cremation container: $150
- urn: $295
- Herse: $375
- Relic transport: $395
- Family Transport: $175
- Brochure and Ingredients: $195
The FTC provides a funeral price checklist to help you navigate the process.
Average funeral costs by region
The average funeral costs vary by state. Every year, the NFDA publishes a survey of general price lists. These are the results of the most recent report based on data for 2023.
Average Funeral Costs by NFDA Region
| region | average. Funeral costs through viewing, ceremony and burial | average. Funeral costs through viewing and cremation |
|---|---|---|
| New England (CT, ME, MA, NH, RI, VT) | $8,985 | $7,023 |
| Middle Atlantic (New York, New York, Pennsylvania) | $8,537 | $6,498 |
| South Atlantic (DE, Florida, Georgia, MD, North Carolina, SC, WV, VA) | $8,023 | $6,103 |
| East South Central (AL, KY, MS, TN) | $7,615 | $5,858 |
| West South Central (AR, LA, OK, Texas) | $7,912 | $5,890 |
| East North Central (Illinois, Michigan, Ohio, Wisconsin) | $8,280 | $6,120 |
| North Central (IA, MN, KS, MO, ND, SD, NE) | $8,755 | $6,713 |
| Mountain (AZ, CO, ID, MT, NV, NM, UT, WY) | $7,390 | $5,505 |
| Pacific (AK, California, Hello, HI, HI, WA) | $7,835 | $5,812 |
Funeral costs have increased over time, but recent data shows that average funeral costs have not risen as quickly as overall inflation. However, this could result in a temporary disparity and funeral costs could increase in the future.
Wherever you live, cremation tends to be cheaper than burial, but some locations are certainly more affordable than others.
How to prepare funeral expenses
For many, death comes without warning, and while a loved one is in mourning, they must also face the problem of how to pay such enormous expenses. That’s why financial planning is so important before you die. As we are looking at ways to provide peace of mind for your family, there are several ways to prepare funeral expenses.
Life insurance contract
Securing life insurance is one way to contribute to your funeral costs while you are still alive. Depending on your insurance, the death benefit (or insurance payment) that the beneficiary receives when you are gone may cover all or part of the funeral expenses. If there is a larger policy, there may even be additional funds left to help beneficiaries cover greater financial liability, such as the high cost of parenting and mortgages.
There are many different types of life insurance that can help you plan your end-of-life expenses.
- Life insurance: It offers coverage for a specified period, such as 10, 20, or 30 years, at a fixed interest rate. It is generally more affordable, but only rewards if the policyholder dies during the period. It is designed to provide financial protection against unexpected deaths.
- Overall Life Insurance: As long as premiums are paid, the maximum coverage age is between 95 and 121 years old, providing lifelong coverage. It also includes cash value components that grow slowly over time. However, this cash value is not a direct savings account of the beneficiary, but an asset that the policyholder has access to for his lifetime. Upon death, the beneficiaries receive death benefits, not accumulated cash value.
For those seeking lifetime coverage that will provide additional financial assets benefits over the course of their life, life insurance may be an option to explore. However, it is important to note that the overall life policy tends to be more expensive and requires long-term commitment.
Final Cost Insurance
Final cost insurance, also known as burial or funeral insurance, is a specialized type of life insurance designed to cover costs associated with end-of-life costs. This product is particularly beneficial for individuals with serious medical conditions that may be denied traditional life insurance coverage. Unlike traditional insurance, final cost insurance typically requires more stringent underwriting and makes it more accessible to people who may not qualify for other types of coverage.
Death benefits associated with burial insurance generally range from $5,000 to $25,000. This amount is usually only sufficient to cover funeral costs. This includes expenses such as burial, cremation and other related services. The main purpose of final cost insurance is to cover these end-of-life costs, but beneficiaries can also use the remaining funds for other unpaid expenses, such as medical expenses and legal costs. However, it is important to note that these policies are often accompanied by a higher premium compared to coverage amounts, as they are easier to obtain.
How to pay funeral expenses
In addition to life insurance, there are several ways to prepare for funeral expenses.
Traditional savings account
You can always use a traditional savings account for funeral costs. The advantage of savings accounts is that your money is kept safe and generally accessible. Choosing a high-yield savings account can help cover rising funeral costs, even in the event of inflation. However, probate can cause delays, so anyone paying for the funeral must pay through other means until the deceased’s assets are valued.
Dead account
A payable (POD) account can be a better bet than a traditional savings account. This allows you to set up a special funeral savings account. You appoint someone who wants to manage the funds after you die, and that person can access those funds simply by showing a valid death certificate. If the beneficiary displays a death certificate, they will have immediate access to the funds, but the account does not require probate.
Military Burial Relief
Military members are eligible for special burial benefits, while others may choose a bank loan or a prepaid plan through their chosen funeral home.
You can also look into military benefits such as death reward programs. The program is a payment of up to $100,000 for anyone who dies while providing certain status, active or spare. They also benefit from $300 for non-service-related deaths and $2,000 for deaths connected to the service.
Advanced arrangement
Will is another way of preparing for death in advance. The will can specify how your funeral will be held and provide information on how to pay for the funeral.
Will can also specify specific assets that you can leave behind and go to the right people. At your will, certain people in your family can even state at your will that they want to sell any of your assets to pay your funeral costs.
How to keep funeral costs affordable
Whether you have received a financial plan to cover funeral costs or purchased life insurance, it is important to consider the cost worth the price. If you’re gone and feel that there are other costs that will take priority over the luxurious service formula, we recommend that you consider ways to keep these costs low and let your family know your wishes.
Below are some strategies that will help you keep funeral costs affordable.
- Shop at the best prices. Just like anything else in life, not all funeral homes charge the same amount, so shopping can help you save money in the long term.
- Choose cremation and offer your own ur. Cremation costs are usually cheaper than preservatives and burials, making them a cost-saving alternative, but buying or obtaining a container to use as bone n in advance can save you hundreds of dollars in advance.
- Consider donating your body. In the name of advances in medical technology and scientific research, some medical schools cover the costs associated with body acquisition after death due to use of medical research. It could be a great way to help scientists understand the effects of various diseases and conditions on the human body.
