Planning for the inevitable can be one of the most stressful yet important decisions you ever have to make. Going through the funeral-planning process with a level head and clear objectives can spare you a lot of heartache – and money, says money expert Clark Howard.
If you don’t know your loved one’s wishes and you don’t plan ahead, you could find yourself out of a lot of money during what could be one of the most vulnerable times of your life.
“You may be left being the one who has to figure it out. And so that’s where the funeral industry has always made a fortune: either playing on your guilt or your sadness. They eat you up with unbelievably expensive funerals.”
But it doesn’t have to be that way. In this article, I’ll share some tips from Clark on how you can save money when planning a funeral.
The Funeral Industry Has Changed
The funeral industry has undergone a lot of what are called “roll-ups,” Clark says. That’s when national and international chains buy out smaller funeral homes.
With fewer independent funeral companies, you have less choice. But there are still ways to save money.
The internet has given consumers new options when it comes to choosing funeral services including:
- Funeralocity, which lets you compare funeral home prices;
- Funerals.org, a Clark favorite that works with memorial societies to get reduced rates on funeral expenses.
How To Save on a Funeral
Here are some tips from Clark on how to save money on a funeral. One tip you won’t see is to purchase a pre-paid funeral home.
Avoid Pre-Paid Funeral Plans
With a pre-paid funeral plan, you’ll have already forked over the money for a casket, plot and other traditional necessities when it’s time to bury yourself or a loved one. The only problem is that there is no guarantee that the funeral home you paid mortuary services to upfront will be around when it’s time.
“You don’t want a situation where you prepaid for a funeral and then they’re not there when the time comes. You’re dependent then on whatever state guarantee fund exists for funeral homes or cemeteries in your state. I don’t advise this at all.”
Join a Memorial Society
Clark recommends that you explore joining a memorial society, which is a nonprofit organization that provides information and resources on saving money on funeral costs. While these organizations aren’t in every state, they are in many states and there is typically a nominal one-time fee to join and no annual dues.
Among the benefits of joining a memorial society is that it uses group buying power to negotiate discounts on funeral expenses on your behalf.
(If there is a memorial society in your state, contact them to inquire about its enrollment status, as not all states have memorial societies that are accepting new members.)
Comparison Shop Caskets
One of the main expenses associated with a funeral is the casket, which can cost several thousands of dollars. But you don’t have to buy a casket from the funeral home.
“You don’t have to play by their rules. You don’t have to go through the emotional manipulation of a funeral home,” Clark says.
Federal law allows you to buy a casket anywhere you want. You can find them through independent vendors, at warehouse stores and even on the internet. Read our guide on how to save money on a casket.
Consider Cremation
Compared to a casket burial, cremation can help you keep a lot of money in your pocket — especially if you shop around.
“There are now very competitive offers in the marketplace, particularly in midsize and large metropolitan areas, for cremation, so you can drive that cost down, down, down,” he says.
The average cost of a cremation in the United States can range anywhere between $2,000 to $10,000, according to some estimates, although the plethora of choices make price comparisons difficult.
Direct cremation typically doesn’t include a memorial service or amenities provided by a funeral home. The prices increase as you add services that more closely resemble a full-service casket funeral.
Be Cautious About Buying Burial Plots …
Cremation is now more popular than burial in the United States, according to the Cremation Association of North America.
And that’s a major reason Clark strongly encourages people to talk with their loved ones about their funeral wishes. If not, families could end up buying sections of burial plots that never get used.
“These are conversations of philosophy and desires that should be discussed,” he says.
And Burial Insurance
Clark says if your state has a memorial society, you should probably skip burial insurance.
“If you have a non-profit memorial society near you, you know you’re going to be able to do a cremation for hundreds of dollars and typically a burial for a couple thousand, so to insure for that makes no sense.”
Clark’s Funeral Plan
Over 40 years ago, Clark joined his state memorial society.
Clark says there are a number of places where you can sign up to donate your body, which medical institutions will use for whatever they need. There is no cost to the donor.
Memorial societies have information on how to do this. Some places where you can donate your body to science include:
Final Thought
Clark says talking to your loved ones about funeral planning may be a hard conversation, but it’s a necessary one. And he encourages people who have adult children to start that conversation.
Want more resources? Read our guide on how to create a will online.
