Funerals are often one of life’s biggest... and last expenses. Planning ahead can be uncomfortable, but it can save money and help ease the burden on your loved ones. Consumer Reports has practical advice on how to navigate the process and what to watch out for.
For nearly a half-century, Deloris Evans thought her passing would not be a burden for her family. Decades ago, she bought a prepaid funeral plan.
Doloris says, “I got that when I was young. Thinking I was prepared.”
But there was a big problem. Deloris recently found out she was caught in a scam. She received a letter saying her pre-paid funeral contract is worthless and denied by the funeral home. The FBI says the company behind it stole nearly half a billion dollars from families across 16 states. The fraudsters went to prison more than a decade ago. Deloris recovered just a few hundred dollars and must start over.
Today there are better consumer protections. The Federal Trade Commission now enforces what’s known as the Funeral Rule. The rule makes it possible for consumers to be aware of costs. Now you have more options than ever before to plan your funeral on any budget.
There are several ways to cover funeral costs. One is a ‘payable on death’ bank account where money you set aside for funeral costs can be transferred to someone you trust when you die.
Another is final expense insurance, which can pay $5,000 to $25,000. But watch out: premiums may cost more than the benefit, and some policies have a timeline. Meaning you must pay for years before it covers the funeral in full.
Visit a few local funeral homes and ask about prices and packages. You can select what you want like a visitation, service, and care of the body. When you call or visit a funeral home it must provide a general price list covering goods and services such as embalming and the use of a hearse.
Funeral homes often sell caskets and vaults, but you can shop around. It might sound kind of creepy, but you might find a better deal at Costco, Walmart or Amazon.
The cost of cremation can range from about $2,000 to more than $6,000. And once your plan is final, be sure to tell your loved ones. This is Ashley Prieto.
Other costs to be aware of are cemetery plots can cost $2,000 and up, and headstones another $1,000 to $3,000. And while writing your own obituary may feel uncomfortable, leaving a list of names you want mentioned, ensures no one is left out.