A typical funeral can easily cost several thousand dollars. In addition to paying this expense, loved ones are required to make numerous decisions, covering everything from the preparation of the body to the type of casket. All this comes during a very emotional time. Although funeral preparation is never a pleasant topic, it is one that will become necessary eventually. By planning ahead with preneed funeral insurance, families can have peace of mind knowing that important decisions and financial arrangements have already been made.
The Cost of Modern Funerals
The typical funeral involves numerous expenses. These include:
- The embalming, cremation or other preparation of the body
- The casket and outer burial container or urn
- The funeral, graveside and/or memorial service
- Transportation of the body
- The cemetery plot
- The grave marker
- Fees associated with obtaining permits and publishing an obituary notice
The cost of each element can vary greatly. The casket, for example, can range in price from under $1,000 to $10,000 or even more. According to the FTC, the average casket costs a little more than $2,000.
According to the National Funeral Directors Association, the median funeral with a viewing, burial and vault cost $8,755 in 2017. Cremation is somewhat less expensive. The median cost of a funeral with a viewing a cremation cost $6,260 in 2017.
Making the Right Choices
Families are also required to make a series of decisions. These include:
- Whether to embalm the body
- Whether to cremate or bury the body
- What kind of service to have
- What type of casket or urn to buy
- What type of grave marker to purchase
If these issues were not discussed ahead of time, surviving loved ones may not be sure how to proceed. In the end, they may choose options that the deceased would not have wanted.
How Preneed Funeral Insurance Works
Preneed funeral insurance is similar to life insurance. However, a life insurance policy provides a payout that can be used to cover many expenses that go beyond the funeral costs, such as medical bills and mortgages. Preneed funeral insurance is specifically intended for the funeral costs. This makes the purpose clear and ensures that funds are set aside specifically for this expense.
Preneed funeral insurance also means that decisions have already been made. When purchasing the coverage, policyholders decide what type of funeral they want. This means that loved ones will not be left guessing, nor will they be forced to make decisions while they are grieving. Everything has already been arranged for, and the insurance claim can be paid directly to the funeral home.
Contact your PTT Financial agent to learn more.