Planning a Funeral
- Shop around in advance. Compare prices from at least two funeral homes. Remember that you can supply your own casket or urn.
- Ask for a price list. The law requires funeral homes to give you written price lists for products and services.
- Recognize your rights. Laws regarding funerals and burials vary from state to state. It's a smart move to know which goods or services the law requires you to purchase and which are optional.
- Apply the same smart shopping techniques you use for other major purchases. You can cut costs by limiting the viewing to one day or one hour before the funeral, and by dressing your loved one in a favorite outfit instead of costly burial clothing.
- Plan ahead. It allows you to comparison shop without time constraints, creates an opportunity for family discussion, and lifts some of the burden from your family.
The funeral provider must give you an itemized statement of the total cost of the funeral goods and services you have selected when you are making the arrangements. If the funeral provider doesn't know the cost of the cash advance items at the time, he or she is required to give you a written "good faith estimate.
Information from Federal Trade Commission
Average Funeral Costs
- Overall: $8500 - $10,000
- Casket: $2,000 - $3,000
- Burial vault - $1000
- Burial Plot - $4000
- Grave Marker - $300
Info from Ezinearticles.com
Links
Living Will / Power of Attorney
AARP What you need to know about funerals
S.C. Compliance with FTC rules on funerals
Every day in the United States, on average, there are 5000 funerals.
What to include in your funeral is perhaps the most personal decision you will ever make and one of the most expensive. The average funeral costs between $8500 and $10,000. Cremations cost around $1300.
More and more of us are making our funeral arrangements way in advance. That includes how to pay for it as part of estate planning.
"7 On Your Side" Consumer Watch is showing you how to make sure you are making smart decisions and spending every dollar wisely.
A funeral is no simple thing, as Brian Jones found out. Paperwork and bills from the funeral of his wife, Shirley, covered his dining room tabletop.
Jones says the fine print can be difficult to understand "if you're not an insurance broker."
The Jones had been married 52 years when Shirley passed away last year.
Twelve years earlier, they had bought a funeral pre-need policy. "We thought it would be a good idea," says Brian. "Just one more thing to get out of the way."
Brian says the policy covered almost all the funeral expenses. But a few months later, he got an unexpected bill. "I just was in shock when I got the bill for the additional that wasn't supposed to be there."
"The obituary notice was the only thing that ended up not being paid. But then when they sent me the bill, they had other items on there, plus a late charge."
While they are a time for goodbyes and memories, funerals are also about big money and big decisions.
"People that have gone through weddings, all those decisions that you do in a wedding, you do in three or four months, we basically do the same amount of decisions in 24 hours," notes Jimmie Dunbar, owner of two Spartanburg County funeral homes. Four generations of his family have been in the funeral industry.
Dunbar says so their family won't have to make decisions about caskets and other funeral needs during a time of grieving, more people are planning their funeral way in advance. To pay for it, many take out a pre-need insurance policy that grows in value.
"The insurance companies that we use, based on your financial status, offer three-year payments, five-year payments and ten-year payments, or just one lump sum."
"We're insurance-driven for folks that bring money to us to put aside for their funeral. The younger you are, the cheaper it is. I think it's always best to do it sooner than later."
Kathy Barrett of the Better Business Bureau says funerals can range from a few thousand dollars to potentially tens of thousands. She says pre-need policies allow you to specify what you want at your funeral and lock in the price. "We've had people that have taken them out in the 50s, 60s, 70s. You can imagine the cost from then to now is significantly different," notes Barrett.
The BBB points out decisions about funeral planning can be very emotional. You may want to bring along a friend or a relative to help you make those decisions. You'll want to resist high-pressure sales pitches. Make sure that all the services you choose, plus any future costs or restrictions, are in writing, and make sure you read it very carefully before you sign.
"Never take someone that says ‘just sign right here,’" says Barrett. "Don't do that."
"This is something that once you sign it, you are held to it. It's a contract."
Dunbar agrees the decisions should not be made quickly. "It takes awhile to spell it all out for folks. And it can't be done in one visit, in my opinion. I think there's a lot you have to think about. Go home, and then come back."
Brian Jones' bill was straightened out with the help of the BBB. But after his experience, he believes a pre-need insurance policy isn't necessarily the best option. "I think I'd put the money into savings, let it grow naturally, and keep it yourself."
Funeral directors must give you an itemized price list. It's known as "The Funeral Rule," and it is enforced by the Federal Trade Commission.
The Better Business Bureau has provided these important tips:
Many people see prepaid funeral arrangements as part of estate planning. Ensure your family knows about plans made and where to find the needed documents. Here are some steps to take before making "pre-need" payments:
Carefully compare cost and services of more than one pre-need provider before making a decision.
Make sure details of the funeral services, as well as merchandise (e.g., casket, vault, etc.), are included in the contract.
Determine if there is a penalty for canceling should you change your mind. Ask about the refund policy on both merchandise and services.
Ensure the contract clearly explains what happens to the interest income on pre-paid funds placed in a trust account.
Check if you are protected should the company go out of business. What if you re-locate or die while away from home? Some prepaid funeral plans are transferable, but often at an added cost to the family.
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