By Alina Parizianu, CFP®, MBA, RICP®
You might have heard the proverb, “Everybody wants to go to heaven, but nobody wants to die.”
These wise words remind us that no one enjoys contemplating their own mortality. Many of us would prefer to postpone the preparations for our inevitable passing.
However, it’s often the tasks we least want to perform that are the most vital.
Planning for your funeral and burial expenses falls into that category: It is a considerate and practical step that reduces the financial and emotional stress on your loved ones during their grief. By prearranging and saving for these expenses, you ensure that your final wishes are honored and that your family is not burdened with unexpected costs.
This article will guide you through essential considerations and strategies in this process.
UNDERSTANDING FUNERAL AND BURIAL COSTS
Whether you decide on a traditional funeral, homegoing or memorial service, costs vary widely depending on the amenities and products you choose. According to iTechFY.com, a traditional funeral or homegoing service with burial can cost between $7,000 and $12,000. Memorial services tend to be less expensive because there are no viewings and thus no casket or embalming costs.
A funeral or homegoing includes expenses such as:
• Funeral home staff services, including planning, securing permits and the death certificate, printed materials, and coordinating with the cemetery or crematory.
• Transportation for the body to the funeral home, hearse services, and any additional transportation for family members.
• The price of a casket ranges from a few hundred dollars to several thousand, depending on the material and design. Urns for cremated ashes range from $70 to more than $2,000.2
• Embalming and body preparation if you choose to have an open-casket viewing.
• Venue fees for the use of the funeral home or other venue for the service and any additional costs for clergy or officiants.
• The cost of purchasing a burial plot, opening and closing the grave, and a grave marker or headstone.
• Cremation services if you opt for cremation.
HOW TO DEVISE A STRATEGY
Begin by researching and comparing prices and services at funeral homes and cemeteries in your area. Many funeral homes offer package deals that can save you money.
Next, make decisions about the type of service you want, whether you prefer burial or cremation, and any specific desires you have for your final arrangements. Documenting your preferences helps ensure that your family fulfills your requirements.
Consider your options for financing your funeral, homegoing, or memorial and speak to your financial planner to help determine which choice is best for you:
Pre-pay for services: Some funeral homes offer prepaid plans that allow you to fund your funeral in advance. Prepaid plans might lock in current prices and protect your family from inflation. You can pay in a lump sum, set up installments, or use a combination depending on your budget. Installment plans usually span three, five or 10 years. Be sure to read the terms and conditions carefully, understand what is covered, and perform your due diligence on the reputation of the funeral home.
Keep in mind that some plans might include interest fees, which cost you more than expected.
Additionally, funeral home plans are often not portable and can’t be transferred to other funeral homes. Moreover, if the funeral home closes down, you might lose your investment.1
Consider funeral insurance: Funeral insurance, also known as burial or final expense insurance, is a type of life insurance specifically designed to cover funeral and burial costs. According to Forbes magazine’s reporting in 2023, these policies typically offer lower death benefits and are easier to qualify for than traditional insurance because they don’t require a medical exam.
On the other hand, they can be expensive and offer graded death benefits. A graded death benefit only pays your beneficiaries the cost of the premium if you die in the first few years after obtaining the policy. The full death benefit doesn’t kick in until later.
Set up a Payable-on-Death (POD) account: A POD account is a bank account that allows you to designate a beneficiary who will receive the funds upon your death. This can be a convenient way to set aside money specifically for funeral expenses, ensuring that the funds are readily available when needed. Your beneficiary can’t access the money while you’re alive, but you can withdraw or deposit money into the account at any time.1
Savings accounts: Setting up a dedicated savings account for funeral expenses is another option. You’ll want to include this savings account in your estate plan so that your beneficiaries will have easier access to the funds when you pass.
Funeral trusts: A funeral trust is a legal arrangement where funds are set aside to cover funeral expenses. These trusts can be revocable or irrevocable, depending on your preferences.
Bankrate.com reports that while there are advantages to funeral trusts, there are also caveats, including Medicaid and tax implications and the risk of lost or inaccessible funds. Since funeral trusts are not common, they might be less regulated than more popular mechanisms, and it might be harder to find detailed information about them.
Make sure to speak to your financial planner and your estate planning lawyer about whether a funeral trust makes sense for you.
Finally, ensure your family members are aware of your arrangements and where to find important documents related to your funeral plans. Clear communication prevents confusion and increases the likelihood that your wishes are respected.
Planning for funeral and burial expenses is a compassionate and responsible decision. Your preparation will be a lasting gift to those you care about most.
Alina Parizianu, CFP®, MBA, RICP® is a Financial Planning Specialist for MMBB and a Certified Financial Planner™ with more than 14 years in the financial services industry. She earned an M.B.A. in Financial Management from Pace University Lubin School of Business and a B.A. in Finance and Insurance from the Academy of Economic Studies in Bucharest, Romania.
1 Choice Mutual, “How Pre-paid Funeral Plans Work: The Pros and Cons.”
2 Lincoln Heritage Funeral Advantage, “How Much Does an Urn Cost?” 2025.
