Understanding the Surge in Average Funeral Costs

Since 1990, funeral expenses have risen by over 225%, surpassing the growth rates of other essential commodities. For comparison, the cost of food has increased by approximately 72%, and the average cost of gas has seen a 132% rise.

For many individuals, it’s a planned expense. Let’s delve into the breakdown of these costs and explore the options available for covering these bills.

As of December 19, 2019, the National Funeral Directors Association reported a median funeral cost of $7,640.

The breakdown includes the cost of a funeral with cremation, amounting to $5,150. The calculation considers various elements such as the basic services fee, removal/transfer of remains to the funeral home, embalming, and other body preparations, the use of facilities and staff for viewing and a funeral ceremony, a hearse, service car/van, and a basic memorial printed package.

The figures provided exclude additional expenses like cemetery, monument or marker costs, and miscellaneous cash-advance charges for items such as flowers or obituaries.

National Median Cost of an Adult Funeral with Viewing and Burial in 2019

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When it comes to paying for a funeral, several options are available. Burial insurance stands out as a flexible choice, especially if you haven’t set aside funds in a savings account for this purpose.

Here are some common ways to cover funeral expenses:

• Pre-need insurance — A type of permanent life insurance offered by funeral homes. These policies have downsides, such as potential changes in funeral home ownership and limited flexibility for your family.
• Pre-need funeral trust — A trust that accrues interest over time but is typically taxable and irrevocable.
• Self-funded burial — If you’re financially prepared for retirement, you may already have the necessary funds for your funeral.
• Burial insurance — Also known as Final Expense insurance, it helps your surviving family cover funeral and burial costs. Typically, coverage amounts do not exceed $25,000 and are intended specifically for funeral expenses.