End-of-Life Peace of Mind: Planning Ahead for Funeral and Burial Expenses

Many of us would consider ourselves “planners.” We make financial plans for everything in our lives—our weddings, vacations, retirement, the births of our children. But, somehow it’s harder to sit down and plan out the details of our funeral—deciding how we’d like to be buried, discovering the cost of our preferred burial method, and then creating a plan for covering that expense. Unlike with other memorable life events, we’re less able to romanticize our deaths. Still, it’s important to plan ahead for it just as we would for any other defining moment in our lives. Here are four of the best ways to ensure your funeral expenses are taken care of long before your time comes. 

1.) Consider a prepaid funeral plan. 

Land shortages have prompted a dramatic increase in the cost of burial in recent decades. As protection against the inflation of funeral prices in the future, many (23% in 2007, according to AARP) over the age of 50 choose to prepay, at least, a portion of their funeral expenses. This protection does come with some risk, as many funeral companies don’t offer refunds if you wish to change or cancel your plan. Shop around and compare the prices and services of funeral homes in your area, since prices can vary widely. Also, make sure to ask questions, such as what happens if you move or want a refund. Scrutinize the fine print yourself, or pass the contract on to your lawyer for review before committing to prepayment. it may be a wise financial decision, but it’s one that shouldn’t be taken lightly. 

2.) Insurance policies can cover end-of-life expenses. 

Life insurance is one type of coverage in regards to end-of-life. It provides coverage of $50,000 or more usually in supplemental income to your family upon your death. On the other hand, funeral insurance and final expense insurance go directly toward the satisfaction of outstanding debts at the end of your life, ranging from funeral expenses to medical and even credit card bills. Before discussing funeral or final expense insurance with an agent, have an approximation of your final expenses. This will inform the type of coverage you should be looking into. 

3.) Go au naturel with a green burial. 

Natural burials, or green burials, are a method of caring for the dead that considers the well-being of everyone and everything involved with the burial process. Emphasizing minimal impact on the environment, green burials preserve natural resources and habitats, protect health workers, and reduce carbon emissions. Non-toxic, biodegradable caskets, urns, and shrouds are used in a green burial, but this type of burial is good for more than just the environment; your pocketbook will benefit as well. Green burials are far more cost-effective than traditional burials that use embalming chemicals, concrete burial vaults, or cremation. A natural burial can give you peace of mind on both a financial and an environmental level, since you’ll know your physical body is leaving the earth without bringing it harm. 

4.) Think long-term by starting a funeral fund. 

The cost of prepaying for your funeral expenses may be out of your reach at the moment, but the fact that you’re not prepaying doesn’t have to mean you’re not pre-planning. Starting a funeral fund and saving money over the course of time might make the most sense for you. In this case, it’s recommended to open a Totten trust, instead of a regular savings account, because of its high interest accumulation. A Totten trust is just a regular bank account, but it comes with a higher interest rate and 

the designation of a “pay-on-death” inheritor—a beneficiary you’ll name when you open the account. 

Planning how to cover the cost of your funeral expenses it’s a personal process, but, once it’s done, make sure your family members are aware of the plan. Transparency with loved ones is an important part of making sure your funeral goes according to your wishes. Additionally, if you know you’d like to use a particular local funeral company, reach out to them and fill them in on your plans. Even if you’re not prepaying your funeral expenses, it can be invaluable just to have the feedback of an experienced funeral director in regards to this process which, to you, is completely unique. Regardless of which arrangements you choose, planning for your funeral expenses is vital to ensuring your eternal peace at the end of a life well-lived.