Do You Know How Your Funeral Will Be Paid For?
When people think about estate planning, they often think about what happens to their money, home, and belongings after they're gone. They create a will, name beneficiaries, or put together an advance healthcare directive to make things easier for their loved ones.
But there's one important question many people never ask:
How will the funeral actually be paid for?
It's understandable. Funeral planning isn't something most people want to think about, especially when they're young and healthy. But the reality is that funerals can be one of the first major expenses families face after a loved one dies—and one of the most unexpected.
According to the National Funeral Directors Association (NFDA), the 2023 national median cost of a funeral with viewing and burial was $8,300, while a funeral with viewing and cremation cost a median of $6,280. Those figures don't include cemetery property, monuments or markers, flowers, obituary notices, or other expenses that can increase the total cost even further.
For many families, these financial decisions happen at the same time they're grieving. Within a matter of days, they may need to choose a funeral home, coordinate with relatives, schedule services, complete paperwork, and figure out how to pay for everything.
Planning ahead can't eliminate the emotional weight of losing someone. It can, however, make one part of the process much easier.
Funeral Wishes Are Only Part Of The Plan
While some people are beginning to recognize the importance of documenting their funeral wishes, there is a wide gap. Only 19.4% have pre-planned and prepaid for arrangements.
Whether you'd prefer burial or cremation, a traditional funeral or a celebration of life, religious traditions or something more personal, leaving clear instructions can remove uncertainty and prevent family members from having to guess what you would have wanted.
With GoodTrust, you can detail all of the above and much more by creating a Funeral Directive. This document allows you to be clear about your final resting place wishes as well as detail how you’d like the event to go. From music to flowers, whether you’d like your guests to give to a charity of your choice… the possibilities are endless.
But those instructions don't answer another important question:
Who is responsible for paying for it?
Without a financial plan, loved ones may need to rely on savings, use credit cards, or wait for estate assets or life insurance proceeds before they're reimbursed. Even families with life insurance may find that funeral expenses arise long before insurance benefits are available.
Thinking about both your wishes and how those wishes will be funded creates a more complete plan.
What Is A Pre-Need Funeral Policy?
One option some people choose is a pre-need funeral policy.
Unlike traditional life insurance, which provides money to beneficiaries after someone dies, a pre-need funeral policy is designed specifically to help cover funeral expenses. These policies are generally purchased in advance and are often connected to arrangements made with a funeral provider.
Some plans are paid for over time through regular premiums. Others are available as Single Pay Policies (SPPs), allowing the purchaser to make one upfront payment instead of ongoing monthly payments.
The exact terms vary depending on the provider and the policy, so it's important to understand exactly what is included before purchasing.
Questions To Ask Before You Buy
If you're considering a pre-need funeral policy, don't be afraid to ask questions. Understanding the details now can help avoid surprises later.
Some important questions include:
What funeral goods and services are covered?
Are prices guaranteed, or could my family still owe additional costs?
If I move to another city or state, can the policy be transferred?
What happens if I change my mind or want to update my arrangements?
What happens if the funeral home changes ownership or closes?
The answers can vary between providers, making it worthwhile to compare your options before committing to a plan.
A Complete Plan Goes Beyond Paying For A Funeral
Funding a funeral is only one piece of preparing for the future.
Your loved ones also benefit from knowing where your important documents are stored, who should be contacted, and what your final wishes are. A will determines how your assets are distributed. Advance healthcare documents communicate your medical preferences. Funeral instructions explain how you'd like to be remembered.
Together, these pieces create a more complete estate plan—one that helps reduce both financial and emotional stress during an already difficult time.
Planning for a funeral isn't about expecting the worst. It's about recognizing that one day, someone else may have to make these decisions on your behalf. Taking the time to plan ahead today can give your loved ones one less thing to worry about tomorrow.
Get started on your Funeral Directive today at GoodTrust.