How much does a funeral cost? Here's how to pay for it

Planning a funeral can be taxing. Making time-sensitive decisions while grieving the loss of a loved one, along with managing the costs, can leave anyone feeling overwhelmed.

How much does a funeral cost? As of 2021, average funeral expenses added up to $7,848 for a burial and $6,970 for cremation. With additional services, many families pay even more for their loved ones' funeral services. Typically, funeral homes want payment up front, which can add stress.

However, you have options to manage these expenses.

Do you know the wishes of your loved ones when they die? The more you understand up front, the smoother planning can be. Also by understanding the typical costs associated with planning a funeral, you can create a sound plan that allows you to focus on your loved ones rather than finances. How much does a funeral cost with these elements of planning included? Consider this median funeral cost breakdown from the National Funeral Directors Association.

A traditional burial may include a visitation and memorial service before burial or entombment. The biggest expense with this type of funeral is typically the casket, but it also costs money to preserve and prepare the body for viewing.

Cemetery expenses can include the burial plot and the gravestone or grave marker that rests on top. These may be purchased in advance to spread out your costs. Cemeteries may require a grave liner or vault to keep the ground from caving in. Also there may be additional charges to open and close the grave.

• Nondeclinable basic services fee: $2,300
• Removal/transfer of remains to funeral home: $350
• Embalming: $775
• Other preparation of the body: $275
• Use of facilities/staff for viewing: $450
• Use of facilities/staff for funeral ceremony: $515
• Hearse: $350
• Service car/van: $150
• Printed materials (basic memorial package): $183
• Metal burial casket: $2,500

Cremation funerals often are less expensive than a burial. Instead of purchasing a casket, you can rent one and then buy an urn to house the remains. Or you don't need a casket at all if that was your loved one's wish.

A visitation and memorial service are still possible with a cremation burial. Some families will have a visitation or viewing before the cremation process. Or you can have a service, after the cremation, with the urn present.

You'll also need to consider what happens to the remains after the cremation. Scattering the ashes or keeping the urn in your possession can decrease your cemetery costs. But some families opt to bury the urn in a cemetery plot or house it in a columbarium, a room where urns are stored.

• Nondeclinable basic services fee: $2,300
• Removal/transfer of remains to funeral home: $350
• Embalming: $775
• Other preparation of the body: $275
• Use of facilities/staff for viewing: $450
• Use of facilities/staff for funeral ceremony: $515
• Service car/van: $150
• Printed materials (basic memorial package): $183
• Cremation fee (if firm uses a third party): $368
• Cremation casket: $1,310
• Urn: $295

Any time spent at a funeral home or cemetery typically will incur service fees. Funeral providers often charge for services such as handling and transporting the body. Workers who greet and direct guests or work behind the scenes also are covered under service fees. Fees can vary significantly across funeral providers, so if you can preplan your funeral you may find the best price and care.

In addition to the above costs, consider the following common funeral expenses, which can be taken care of prior to death.

• Public cemetery plot (casket burial): $525-$2,500
• Vault or grave liner: $900-$7,000
• Gravestone or grave marker: $500-$2,000

You'll also have to pay for securing death certificates and writing obituaries. Your budget also might include travel, lodging and catering if necessary. Many experts recommend rounding up funeral expenses to $10,000 so that you have some room in your budget.

Whether you're planning your own funeral or arranging for a loved one, try your best to approach funeral expenses like other significant purchases. Understand what matters most, then begin prioritizing.

Funeral providers must provide an itemized list of their goods and services and the associated costs. Consider comparing two to three funeral homes to ensure you receive a fair price.

Funeral providers also must identify and explain required or nondeclinable fees. You only have to pay for products or services that you choose, unless they are required by law. A funeral home cannot force you to pay for an optional product or service simply because it is part of a promotional package.

Embalming, visitations and memorial services are examples of common optional expenses, but funeral home service fees are often nondeclinable.

You do not have to purchase funeral products such as caskets, urns, memorial service programs and flowers directly from the funeral home. Many third parties offer these products at a fraction of the cost.

A large memorial service with a viewing is not your only option. Passing on certain services can simplify the funeral and decrease costs if you're comfortable with the trade-offs. For example, you could decide not to embalm the body and instead opt for an immediate burial or cremation. However, because the body is not being preserved, usually no visitation is allowed.

If you are a member of a church, having the memorial service there may be an opportunity to save on funeral home expenses as they often provide services at a lesser or no cost to members. You still could rely on the funeral home for the burial after the ceremony.

With an idea of what you need to spend, you can begin strategizing on how to cover those costs.

Some options for paying for funeral expenses include:

• Savings accounts where loved ones have shared access.
• Investment accounts, where loved ones are listed as beneficiaries.
• Life insurance contracts, where loved ones are listed as beneficiaries.
• Prepaying for funeral expenses (although this can lead to complications if your needs change or the funeral home goes out of business).

A properly executed life insurance contract can ensure your loved ones will afford funeral expenses and be taken care of long-term.

Term life insurance is often referred to as an affordable life insurance option to cover a desired timeframe. Permanent life insurance offers protection throughout your entire life, no matter how long you live, as long as coverage remains in-force. Upon your passing, your beneficiaries will receive an income tax-free payout called a death benefit.²

In addition to covering funeral expenses, a life insurance payout can leave your loved ones with the funds to cover unpaid debts, college costs and any of your family's other needs. You also can designate funds to go toward charities of your choosing.

A permanent life insurance contract offers benefits that you can access while living, too. Permanent life insurance can build cash value. With time, the cash value of your insurance may grow—to the point where you can withdraw funds or borrow against it under qualifying conditions.¹

Maybe you'd like to leave more for your loved ones in the event of your death—either by removing the financial burden as much as possible or by allowing some months to grieve without worrying about money. Life insurance offers a path for you.

Families that include children with special needs or who anticipate high health care costs down the road also can benefit from life insurance. There are many scenarios where life insurance can be a viable option to ease the stress of a loss of life.

Depending on your goals and financial situation, it may be worth connecting with a financial advisor to see if and how life insurance may fit into your broader financial objectives.

The best way to avoid blowing your budget or incurring debt is to know your expenses ahead of time. Use the funeral cost breakdown above as a starting point to identify what's important to you and where you can make trade-offs that help you stick to your desired outcome. Keep in mind, some items can be purchased well in advance of death. Taking this step early can allow for more time to grieve in the moment. As you look for ways to save for a funeral, also consider a life insurance contract to make funeral expenses more manageable.

Connect with a Thrivent financial advisor to fully understand your options for funeral cost planning.