Funeral Costs: How To Pay for a Funeral?

The national median cost of a funeral is $8,300, according to the National Funeral Directors Association (NFDA).¹ That doesn't include the cost of a cemetery plot or headstone, which can add thousands more to the total bill.

Knowing what to expect in a funeral cost breakdown and how to pay for these costs can help relieve some stress. Read on for expert tips on how to plan for funeral costs and what estate costs may arise after the funeral.

What's the average cost of a funeral?

The costs of a funeral commonly include paying for the services of a funeral director, the use of a funeral home, transportation of the deceased, embalming or other preparations, a casket or urn, a headstone or grave marker, and burial expenses. Depending on the location , the types of services you choose, and whether you have a traditional burial or cremation, funeral costs will vary.

In many locations, there can be several extra costs related to burial or interment in a cemetery or a mausoleum. For example, in the U.S., most cemeteries require caskets to be placed in a grave liner or burial vault. There may also be costs for cemetery maintenance.

Even if the deceased has prepaid for the funeral, extra costs might apply. For example, prepaid funerals may not include the cost of a cemetery plot or a headstone.

How does the cost of cremation compare with the cost of burial?

Noting the potentially high costs of headstones and cemetery plots, cremation may be a more cost-effective option. The number of Americans choosing cremation has risen in recent years and that trend is expected to continue. More than eight out of 10 Americans (82.3%) are expected to choose cremation by 2045. This is largely due to environmental concerns, cost considerations, and changing consumer preferences.¹

While the cost of cremation depends on many factors, the typical cremation can be less expensive than the average cost of a funeral and a burial ceremony. In recent years, the median cost of a funeral with a viewing and then a cremation in the U.S. was $6,280. In contrast, the median cost of a funeral with a viewing and burial was $8,300.¹

If you choose cremation without a service, you don’t have to buy a casket, and you can save on the costs of a burial plot. The cost of a casket can be one of the larger burial expenses and the price can increase further depending on materials and customization.

What are some additional costs?

Beyond the major expenses of a funeral, other costs can add up quickly. Here are some of the additional products or services you might need or want:

Hearse
Service vehicle or limousine
Clergy fees
Musician fees
Printed materials
Flowers
Photos or videos
Reception location
Catering

If you’re interested in reducing funeral costs try shopping around online for lower cost funeral goods and services. You could also consider direct cremation or immediate burial and plan a memorial service instead of a traditional funeral.

Are there costs involved in settling the estate and probate?

Even after the funeral, you might need to pay to settle your loved one’s estate. For example, before any beneficiary can receive an inheritance, the estate may need to go through probate. Probate is a legal process that confirms that the will is valid and appoints an executor to administer the estate. The executor’s duties may include distributing assets and paying any outstanding debts from the decedent’s assets.

Depending on where you live and the value of the estate, the process might involve opening a legal case, administering the estate, and closing the estate. It may be helpful to seek professional advice to determine what you need based on your situation. For instance, you may want to consult a lawyer who specializes in probate and estate administration.

This process might take many months and you could incur more expenses for things like:

Administering the estate (hiring an attorney, opening a bank account for the estate, etc.)
Appraising the estate’s assets
Storing the deceased’s property
Mailing documents to beneficiaries

Why should you consider estate planning?

One of the goals of estate planning is to help your family prepare for the future. Planning and making your wishes known ahead of time may also ease some of the burdens on those left behind. Estate planning may also help to preserve your assets and protect your beneficiaries from costs and paperwork.

If your property and finances are complex, estate planning may involve different advisors, such as lawyers, accountants, or tax professionals. Through estate planning, you can decide how you want your assets managed and distributed after you die.

Having a will and keeping it updated is one part of estate planning. A will is a legal document that will direct what should be done with your assets when you die. There are free online tools you can use to write a basic will. If you decide to use an online will template, consider working with a trusted individual who can help you through the process.

Depending on your personal finances, your plan may also include setting up trusts for different beneficiaries. A trust is a legal arrangement that ensures your assets go to specific people. Not only do trusts offer peace of mind, but they also save time, save paperwork, and avoid the public process of asset distribution.

You may also choose to document your desired funeral arrangements as part of your estate plan or pay for certain funeral arrangements in advance. However, it’s important to feel confident that any businesses you pre-pay will still be operating when the time comes. These plans can help make the process easier for surviving loved ones.

How can you pay for funeral costs?

If you need to finance a funeral, rest assured there are options. If the deceased leaves an estate or savings, those funds might be used to pay for a funeral. In other cases, there are loans for funeral expenses or other financing to consider when planning for your own funeral or paying for a loved one’s funeral.

Life insurance

Life insurance policies may be used to pay for a funeral. The death benefit from any type of life insurance, including term, universal, and whole life, can be used for funeral expenses. But, the beneficiary of these funds is not obligated to use them for the funeral.

Funeral or burial insurance

Another option is purchasing a funeral or burial insurance policy, which is usually a whole life insurance policy with a death benefit designed to cover final expenses. Funeral or burial insurance payouts typically range from $5,000 to $25,000.

Veterans benefits

U.S. military veterans may be eligible for burial benefits through the U.S. Department of Veterans Affairs (VA). Benefits may include help paying for funeral costs, including burial and a service in a VA cemetery.

Community assistance

In some locations, community assistance may be available through charitable or religious organizations. Depending on the state, financial-need-based help with funeral expenses may also be offered.

Credit cards

Credit cards could be a convenient form of payment for many people. You may prefer, however, not to increase your credit card balance, which could affect your credit score. Credit cards have variable interest rates, so if rates increase, you might end up paying more. They’re also a form of revolving credit. That means that if you don’t pay off your balance in full every month, you could end up paying a lot in interest.

Funeral loan

One convenient option to help pay for funeral costs may be a funeral loan. A funeral loan is a personal loan you take out to pay for burial costs. It’s a type of unsecured loan that can be used for many expenses and may be an option that works well for you when you need money fast.

What happens when there is no funeral insurance or will?

If the deceased didn’t have life or final expense insurance, also known as funeral insurance, it may be more difficult to settle the estate and pay for funeral costs. If there’s money and property to be distributed, a court may need to appoint an administrator to oversee the estate, and then to be responsible for distributing the assets of the estate according to state law. The survivors and estate administrator are under no obligation to pay for funeral costs if they don't want to. Those would be paid from the deceased’s funds.

What are the pros and cons of funeral loans?

Without a will or executor named, the probate process can take several months, or even years, to complete. During this time, the court-appointed administrator is responsible for managing the estate and paying any debts and funeral costs from the estate’s assets. A personal loan might be a good option to pay for funeral costs, but with the emotions surrounding a death, it’s important to consider it carefully. To help make the decision, review your budget carefully and weigh the pros and cons.

Pros

Fast funding. Because personal loans are unsecured, money can often be sent to you quickly. At Discover® Personal Loans, funds can be sent as soon as the next business day after your acceptance.
Defined repayment term. You can choose a payment and term that fits your budget and know exactly when the loan will be paid off. With a Discover personal loan, this could be from three to seven years.
Fixed rate, fixed payment. You’ll repay the loan by making one set regular monthly payment. The interest rate will not change over time.
Potential stress relief. The death of a loved one can be difficult emotionally and financially. A personal loan may help relieve the immediate financial stress and let you focus on celebrating the life of your loved one.
Greater convenience. Online lenders don’t require a pre-existing relationship, unlike some banks and credit unions.

Cons

Taking on new debt could get in the way of your financial goals. Wanting to honor the wishes of a loved one is understandable. But if you can’t pay for a funeral with savings, make sure you know how a personal loan will affect your finances now and, in the future, so you can avoid creating a debt burden for yourself.
You are wholly responsible. Instead of splitting the costs among several family members or friends of the deceased, you will be solely responsible for paying down your loan.
You might need a good credit score. To get the best loan terms and interest rates, you will need a strong credit score. Otherwise, you might only qualify for an interest rate that would make the loan difficult to pay off.

How can you find a lender for funeral expenses?

Many online lenders offer unsecured personal loans that you may use to pay for funeral costs. With Discover, you can see what your loan rate and set regular payment could be before you apply, with no impact to your credit score.**

Be sure to do your research and compare multiple lenders to find the best loan for your situation. Keep in mind that you should know the total cost of borrowing and whether you can afford the monthly payments. Review the loan terms and check for any additional fees that could add to the total price of your loan. With a Discover personal loan, there are no fees at all.

Also, pay special attention to the lender’s reputation. Customer reviews can give you a good sense of whether you are able to rely on a skilled and compassionate support team to help you through a difficult time.

Know your options during this stressful time

Along with the anxiety and grief that can come with the death of a loved one, a funeral could create financial stress. Funeral costs can vary, and many families consider a few different ways to cover them. If spreading payments over time would help, a personal loan may be one option to consider.

That’s why it’s important to be informed and to plan how to pay for funeral costs. If you don’t have the funds available, see if a personal loan could help.

Try our personal loan calculator to see what your total monthly loan payment would be with a Discover Personal Loan.

¹ https://nfda.org/news/statistics