Unless you have recently been involved in burying someone you most likely have no idea how much a funeral actually costs. Depending on the choices one makes, a funeral can cost anywhere between $5,000 and $20,000. Personally I know that the coffin we purchased to bury my mother was $7,000. And that was just the beginning of a very expensive process.
We all know that one day we too will need a funeral of some sort. Of course some are more elaborate than others. Have you put any thought into your funeral, such as whether you will be buried or cremated? If you will be buried, which cemetery will you be laid to rest at? The cost of all of these choices adds up pretty quickly.
You have several options available to you to help you deal with your funeral costs.
Prepay for Your Funeral
Many years ago my parents and grandparents spent some time preplanning and prepaying for their funerals. They wanted to make sure that they would each have the type of funeral that they wanted and that they would all be laid to rest side by side in the cemetery.
While it seemed creepy to us kids at the time, having all of these details sorted out upfront, allowed us to grieve their passing without having to worry about all of these financial details. One of the other advantages of prepaying is that it guarantees the cost of the funeral. Once all of the products and services have been paid for, the funeral home assumes the responsibility for all price increases between today and the day you die.
If you are not able to prepay for your funeral, or do not want to prepay for your funeral, you most likely have the option of using a portion of your life insurance to pay for it. When you purchase your life insurance policy make sure to take into account the cost of your funeral as well as the amount of money you would like to leave to support your family.
Your will should include all of the instructions on how you want this to be handled on your behalf.
Funeral insurance can be a very affordable alternative. Again, it assists your loved ones when the day comes and they need to sort out your finances and pay for your funeral expenses.
You can pay monthly premiums for your funeral insurance, just like you most likely do for your car insurance. In some cases funeral insurance can also be used to pay off additional medical expenses or any other costs that were incurred before and after your passing. And if you purchase more then what your funeral actually costs, the balance of the money will be paid to your designated beneficiary.
You will always see stories about someone that dies suddenly and his or her family is left penniless because the person either didn’t believe that they needed insurance or never got around to buying insurance to cover their expenses and provide for their loved ones. Don’t make the same mistake with your family.