How much does the average funeral cost?

Posted by on September 29, 2009

This article provides average funeral cost data for American funerals. 

The average cost for an American funeral, like other goods and services, has been steadily increasing over the last two decades.  Anyone that has seen a late-night television commercial for funeral insurance knows the typical American funeral costs more than $6,000 – but is this an accurate estimate?  The short answer is “no.” 

Unfortunately, this $6,000 estimate is several years old and doesn’t take into consideration the additional expenses associated with burial in a cemetery and the purchase of a headstone.  Once all funeral-related costs are factored in, the typical traditional funeral service will cost the average family closer to $8,000 - $10,000.  But before we discuss specific funeral costs, we need to spend a few minutes discussing how the funeral industry works.  This will help us understand where our money goes when planning a funeral.

Average Funeral Costs: How the Funeral Industry Works

Most people planning a funeral use the services of a funeral home.  The funeral director is either the owner of a funeral home or, more commonly, an employee of a large corporate-owned chain of funeral homes.  In most cases the funeral director’s compensation is tied to the profits he generates for the funeral home or the sales commissions he earns by selling related goods and services.

While the funeral director will serve as the family’s main service provider when arranging a funeral service, other businesses are involved as well.  In addition to the funeral home, most families will need to use the services of a cemetery and a headstone dealer.  Often times, the funeral director will coordinate the purchase of goods and services between the family and the cemetery and headstone dealer.  While this is certainly convenient for the family, you need to remember that you are really buying things from three separate business entities: the funeral home, the cemetery, and the headstone dealer.

The funeral director’s main responsibility is generating profits for the funeral home.  Unfortunately, this often means the funeral director’s main objective is to increase the amount of money you spend at the funeral home, leaving cemetery and headstone costs as a separate expense for the family.  This is why the typical funeral service is publicized as costing $6,000 – because the family often pays about $6,000 to the funeral director.  However, the family still has to pay the cemetery for the purchase of a grave spot and the dealer for the price of a headstone.  It’s these additional goods and services that add another $2,000 to $4,000 to the price of a funeral.  Unfortunately, many families do not find this out until after they have signed a contract for the funeral services with the funeral director.

Average Funeral Costs: Three Key Components

Because the typical funeral home charges $6,000 for their services, but the average family often spends closer to $10,000 when all is said and done, it makes sense to break funeral costs into their three main components: what’s paid to the funeral home, what’s paid to the cemetery, and what’s paid to purchase a headstone or grave marker.

First, the funeral home

It’s no surprise that most families call a funeral home when someone they love dies.  The funeral home dispatches a funeral director to pick up the body and bring it back to the funeral home.  The funeral director then schedules a meeting with surviving family members to help them arrange the funeral service. 

The family spends approximately $6,000 on goods and services purchased from the funeral home.  Here is a price breakdown of some of those typical costs:

• casket – $2,300
• funeral director’s basic services fee – $1,500
• embalming and body preparation – $600
• funeral ceremony and viewing – $1,000
• miscellaneous (hearse, death certificates, obituary, etc.) – $600

Next comes the cemetery

The average traditional funeral service is followed by body burial in a cemetery.  While most cemeteries used to be owned by non-profit organizations, nowadays many are owned by the same for-profit corporations that own the funeral homes.  The average family will spend approximately $2,000 for goods and services at the cemetery.  Here is a price breakdown of the typical costs:

• grave space – $1,000
• cost to dig the grave ( sometimes called the open/close fee) – $1,000

Many families are surprised to learn that the price they pay for the grave site does not include the cost to dig the hole for burial, but this is how it works.

Don’t forget about the headstone or grave marker

While the typical family has spent close to $8,000 by now, there are still more costs involved in completing the funeral transaction.  If the body is buried in a cemetery you will also need to purchase a headstone or grave marker.  The type of stone you are required to buy depends on the section of the cemetery in which the body is buried.  A headstone is typically a two-piece granite rock that sits on top of the grave site.  It’s typically two feet high.  A grave marker is typically a flat granite or bronze plaque that lies flat on the ground on top of grave site.  Here is a rough approximation as to what you can expect to spend on a headstone:

• Headstone – $2,000
• Grave Marker – $1,000

Again, the funeral home may coordinate the purchase of the cemetery space and headstone on behalf of the family – it just depends on the funeral home.  While this can be a great convenience to the family, the price can be higher because the cemetery or headstone dealer will have to pay an additional sales commission to the funeral home.

Average Funeral Costs: Can they be lowered? – YES!

It is fair to say that many families are truly surprised when they add up all the costs associated with a funeral.  Fortunately, proper funeral planning can yield considerable savings.  I have spent nearly ten years helping families plan more affordable funeral arrangements, and I have found that with a little planning and knowledge, the typical family can realistically reduce their out-of-pocket funeral expenses by $3,000 to $5,000.  If you would like to save money the next time you need to make funeral arrangements, you can find my money saving funeral guide here.

How to plan an affordable funeral

Posted by on August 12, 2009

This article teaches you how to plan an affordable funeral.  With the typical funeral now costing more than the price of a good used car, many families need help making more affordable funeral (and cremation) arrangements.

Affordable Funeral Costs vs. Typical Funeral Costs

Most American funerals now cost between $8,000 and $10,000.  Unfortunately, as baby boomers age, demand for funeral services will grow and drive funeral prices up even further.  Some experts predict that within three years the average traditional funeral will cost nearly $12,000.

Fortunately, with a little planning you can realistically cut out-of-pocket funeral expenses in half.  This means you can save between $4,000 and $5,000 when planning a traditional funeral service or between $1,500 and $3,000 when planning a standard cremation service.

Why It’s Hard to Plan an Affordable Funeral

Even though many people complain about funeral prices, the cost of cremating or burying a loved one continues to increase every year.  Before we identify the things you can do to plan a more affordable funeral or cremation service, it may be helpful to discuss why funerals are so expensive.

First, a few facts about funeral homes: 

• funeral homes (and many cemeteries) are in business to make a profit
• many funeral homes are now owned by large global corporations
• the more things they can sell you, the more profit they make 
• the income for many funeral directors now comes entirely from sales commissions

Unfortunately, most people have no idea what funeral goods and services are required when a loved one dies, nor do they know what those goods and services should cost, so they end up buying whatever the funeral director recommends.  Funeral directors know this, so they simply don’t tell families about less expensive options. 

While there isn’t anything wrong with running a profitable business, many funeral homes achieve their above-average profits by misleading weary and grieving consumers.  Unfortunately, when it comes to funerals, it is easy to mislead consumers. 

Until recently most funeral planning information came directly from funeral directors.  This meant the only information available to families was what they were told by the very people trying to sell them something.   

Unfortunately, many funeral homes only provide information about their most expensive options, so families have little objective information to consider when making final arrangements.  Simply put: the majority of families don’t know how to find more reasonably priced options. 

But here is some good news: the Internet is making it possible for resources such as the [Funeral Saver’s Kit] to provide families with objective, accurate information that can help them make affordable funeral and cremation arrangements.  In fact, much of the information contained in this article comes from the Funeral Saver’s Kit.  

How to Plan a More Affordable Funeral

Fortunately funeral planning is one area in which a little education makes a big difference.  There are several things you can do that will help you plan a more affordable funeral or cremation service.  Here are three basic strategies: 

• Choose a low-priced funeral home
• Choose reasonably priced goods and services
• Don’t be afraid to negotiate

 Choosing a low-priced funeral home

While most funeral homes offer similar services, they often price their services differently.  For example, Funeral Home A might charge a large fee for the funeral director’s time and add a small markup on the price of a casket; while Funeral Home B might charge a smaller fee for the funeral director’s time, but then make up for it by charging a much higher price for the casket.

Because you are now legally allowed to purchase your own casket from the Internet, funeral home B will usually be willing to discount the price of their casket in exchange for your business.  The combination of Funeral Home B’s lower fee for the funeral director’s time and the reduced price of their casket can save you thousands in unnecessary expenses.

Unfortunately, most families do not know which funeral homes in their area offer the lowest prices for the funeral director’s time.  That’s where resources like the Funeral Saver’s Kit come into play.  You can use the Funeral Saver’s Kit to find the funeral homes in your area that offer the lowest prices for the funeral director’s time.  The kit also shows you how to obtain a large discount on any model of casket. 

Choose reasonably priced goods and services

Most families have no idea what funeral goods and services cost, nor do they have any idea how large the funeral director’s markup is on the goods and services they buy.  It is common for funeral homes to markup the cost of their goods by 300% to 500%.  These markups can add thousands of dollars to the funeral home’s bill.

Consumers can be richly rewarded with substantial savings by understanding which funeral goods and services are required and knowing how much those goods and services cost the funeral home. 

Once you know which goods and services are required – and how much they should cost – you are in position to make appropriate choices based on your family’s preferences and budget.  You can consult the Funeral Saver’s Kit for a detailed listing of legal requirements and prices pertaining to all funeral and cemetery goods and services.

A key to affordable funeral planning is understanding how the service you select impacts the overall price of the funeral.  For example, choosing body burial as a means of final disposition means you will have to purchase a casket, outer burial container, cemetery space, and a headstone.

This means that simply agreeing with the funeral director when he suggest a “traditional” funeral can result in thousands of dollars in additional expenses.  Alternatively, choosing cremation – or a different type of funeral service – can eliminate many of these “add on” expenses.

However, you can no longer assume cremation will be less expensive than body burial.  Over the last few years a new trend has been emerging in the funeral industry: more families are choosing cremation in lieu of a full-blown funeral.  In response to this trend, many funeral homes have raised prices for their cremation services in an attempt to protect their profit margins. 

While cremation can still eliminate many cemetery-related expenses, a large portion of the savings previously enjoyed when choosing cremation are now eaten up by additional funeral home expenses – so it pays to understand what you are getting for your money.  Again, a resource such as the Funeral Saver’s Kit makes it easy to understand all of this so there are no surprises.

Don’t be afraid to negotiate

The death of a loved one is one of the most stressful situations any of us will ever encounter.  Not only do we have to deal with the emotional baggage and grieving that’s a normal part of losing a loved one, but we are forced to square off against a well polished funeral home employee working toward a large sales commission. 

And because most families do not want to look cheap when making funeral arrangements for a loved one, they end up paying the funeral home’s “sticker price” for the goods and services they are sold.

However, because funeral home goods and services include substantial markups, there is plenty of room for educated consumers to obtain legitimate discounts.  Many times the funeral home can easily cut their prices in half and still make a substantial profit off of the family’s funeral.

Unfortunately, most families are reluctant – and lack the necessary information needed – to negotiate an appropriate discount on a funeral service.  The key is in understanding how the funeral home’s prices compare to their costs.  Any funeral good or service that is marked up by hundreds (or thousands) of dollars is ripe for a discount.

Don’t be afraid to tell the funeral director you will purchase certain funeral goods from another supplier instead of buying them from the funeral home.  Because the funeral director realizes you can buy many of his goods much cheaper somewhere else, he will be ready and willing to offer a knowledgeable family a substantial discount off of his list prices in order to keep their business. 

You can find a list of reputable Internet suppliers in the appendix to the Funeral Saver’s Kit.  The kit includes a report card that rates the relative quality, prices, and selection of leading online funeral suppliers.  It also includes a detailed listing of the markups applied to common funeral items.)

The need for more affordable funeral options….

As the baby boomer generation reaches retirement age, demand for funeral goods and services will outstrip the ability of funeral homes to provide those goods and services.  Unfortunately, this means that funeral prices will increase by a substantial amount over the next two decades. 

Fortunately, technology and the Internet have made it easier for families to beat the funeral homes at their own game.  Consumer-friendly funeral planning tools, such as the Funeral Saver’s Kit, are saving families thousands of dollars in unnecessary expenses and helping them make more affordable funeral arrangements.

The advantages and disadvantages of donating your body to science

Posted by on July 31, 2009

Many people consider donating their body to science in lieu of choosing a funeral followed by burial in a cemetery.  Body donation (or medical donation, as it is sometimes called), has advantages and disadvantages

Advantages of donating your body to science

One of the chief advantages related to donating your body to science is that this option is often considerably less expensive than other funeral options.  By donating your body to science, you avoid costs associated with body burial in a cemetery.  You may also be able to lower or reduce costs related to the headstone or memorial marker.

A body donation can also be fairly simple to arrange: normally you file basic paperwork with a donor program (usually a medical school) and then notify the donor program immediately following the death.  Representatives from the medical school will dispatch professionals to pick up the decedent and transport the body back to the medical school.

Moreover, the donor program or medical school accepting the body usually takes full responsibility for handling the eventual cremation and burial tasks.  Families are usually given the option of having cremated remains buried at the school site or returned to the family once the school is finished using the body for teaching purposes.

Donating your body to medical science also has an altruistic advantage in that your donation helps train future doctors and surgeons and may help find cures to a variety of diseases.  While this may not be a high priority in some families, other families take solace in the fact that they are able to make a positive impact on future generations.

 Medical donation / Body donation – disadvantages to consider

While medical donation offers many advantages, there are also disadvantages you should consider before finalizing your plans.

You need to plan carefully to ensure that the body will be accepted regardless of the manner of death.  Some donation programs exclude bodies that have expired from certain conditions.  Should you (or a loved one) die in a manner that is excluded under the terms of the donor program, surviving family members would be responsible for making alternative arrangements.  This means even if you were planning on donating your body to science at relatively no cost, you could end up with unexpected funeral bills.

Most donor programs have counselors that can clearly explain which methods of death are acceptable or excludable under their program guidelines.  By talking with the donor program counselor and reviewing their literature, you can reduce –and in many cases eliminate- the risk of an expensive surprise.  Some programs will agree to accept the body regardless of the manner of death – even if the school determines they cannot use the body for teaching purposes.

It is also important to remember that medical donation may not be a viable alternative for “at need” cases.  Most donor programs require program registration prior to the time of death.  Because most medical schools require the decedent to be delivered immediately upon death, there often is not enough time to register for medical donation after the person has died. 

This means you should have a backup plan when choosing medical donation.  You want to have a “plan B” just in case your donation is not accepted by the medical school because of an excludable manner of death or because the body could not be transported to the medical school within a reasonable amount of time.  Again, the donor program counselor will be able to provide clear guidance as to what manners of death and what time frames for delivery are acceptable.

Also, because most medical schools use bodily organs in their research, they usually do not accept bodies whose organs have been donated.  So if donating your organs is important to you, the medical donation option may not be available to you.  Similarly, autopsied bodies are usually not eligible for medical donation for the same reason. 

Note: most medical schools do allow you to donate your eyes without jeopardizing a full body donation.

While donating your body to science can be a wonderful way to serve future generations, the process may not celebrate the decedent’s life as the family wants.  Because time is of the essence when donating a body, there usually is not time to hold a funeral or memorial service with the body present.  This doesn’t mean the family can’t hold a memorial service anyway; it just means that they will have to hold the service in the absence of the body or cremated remains.

Because some families find that holding a funeral is therapeutic and helps them begin the healing process, forgoing a funeral for body donation, may be less satisfying to some  surviving family members.

Although all medical schools hold a community memorial service to pay respects to the bodies used during the previous semester’s classes, this ceremony usually does not occur until approximately 18 months after the date of death.  This extended “waiting period” often may delay the family’s feeling of closure.

Lastly, because the body needs to be preserved for a long time period (usually until the next school semester starts), the medical school will be required to embalm the body.

Donating your body to medical science has many advantages and disadvantages.  The above considerations can be used as a starting point for making an appropriate decision.

You can learn more about donating your body to medical science here.

Related sources:

Find body donation programs in the United States

Body donation information from the Cleveland Clinic.

Lower funeral costs by taking advantage of any military benefits due the decedent

Posted by on July 15, 2009

Before spending thousands of dollars at the funeral home and cemetery, check to see if the decedent qualified for free funeral items from the government.  Why pay for something the government is willing to provide for free?  After all, the decedent has already earned it! 

Many military veterans are eligible for free grave spaces and headstones.  You can search online for information about military benefits or check out section five of the Funeral $aver’s Kit.  It’ll show you which services and goods are provided at no cost by the U.S. government and how to claim your benefits.   

Note: be aware of so-called “free grave” scams that are sometimes offered to veterans.  This is where the veteran is offered a free grave site, but upon death, the family has to pay an unusually high price to have the grave site dug. 

Because many surviving spouses want to be buried next to their deceased spouse, the cemetery may also double the price of all surrounding graves.  This allows the cemetery to make up any profits lost on the veteran’s “free” grave. 

Not surprisingly, these scams end up costing surviving spouses and children thousands of unexpected dollars every year.

Get copy of the Funeral Saver’s Kit and learn how to claim free funeral benefits from the Federal government.

If you need help paying funeral costs, request or negotiate a discount from the funeral home and cemetery

Posted by on June 13, 2009

Contrary to popular belief, most funeral directors are willing to give discounts to families that ask in an appropriate manner.   

Many goods and services provided by a funeral home can easily be discounted by several hundred (or even several thousand) dollars before the funeral home starts to lose money.   

Since most funeral homes buy their merchandise from the same few suppliers, they should be able to sell their goods and services for a similar price. 

However, if you come across a particular funeral home that is selling its merchandise for considerably more than other funeral homes in the area, they may be a good candidate for negotiating a lower price on funeral costs. 

If you don’t want to do the legwork yourself you can use a resource like the Funeral $aver’s Kit to quickly gauge which items are negotiable and how much of a discount is realistic.  The kit also shows you the proper way to discuss and negotiate a discount with the funeral director.  This simple, non-confrontational method has been proven to increase your chances of getting a fair deal.    

Click here to learn more about negotiating a funeral discount.