Key takeaways
- According to the National Funeral Directors Association, the average cost of a funeral ranges from $6,280 to $8,300 as of 2023.
- Life insurance could provide your family with financial security and the money needed to pay for your funeral.
- Funeral expenses have increased over time, but recent data shows that average funeral costs are not going up as fast as overall inflation.
Despite rising at a slower pace than inflation, the average funeral cost usually increases each year. According to the National Funeral Directors Association’s (NFDA) 2023 Member General Price List Study, the median cost of a funeral with burial and viewing is $8,300, an increase of 5.8% from 2021 to 2023. Planning ahead and understanding the fees involved in a funeral ensures you receive the service you want while easing the financial burden on your loved ones. Life insurance is a great way to fund a funeral, but there are other options available, including strategies to lower your funeral expenses.
How much does the average funeral cost?
The average funeral has multiple expenses for goods and services. Per the Federal Trade Commission (FTC), there are several fees that contribute to how much a funeral costs:
- Basic service fee: This is a standard service fee that is associated with a funeral. This covers the cost of planning fees, including any permit and administrative fees.
- Service and merchandise fees: These cover things like transporting, preparing and embalming the body, as well as funeral home fees for the viewing or memorial and any equipment or services required for the graveside service. You will also need to pay for a casket or burial container or the required services needed for cremation or interment.
- Cash advances: These fees are for services that the funeral home may handle for you, such as funeral flowers, clergy and organists. You may pay an added service fee or marked-up price to account for the funeral home’s efforts, but extra fees must be disclosed to you in writing.
According to Lincoln Heritage, the average casket costs between $2,000 and $5,000, while premium caskets, such as Promethean bronze, can cost up to $22,000.
Some buyers purchase a casket independently to avoid third-party markups. However, you will be responsible for shipping the casket to the funeral home, which may be expensive. If you choose cremation, you can avoid the cost of a new casket. Most funeral homes will rent you a casket to use if you plan on holding a viewing or for the funeral as a more cost-effective option if you have other burial plans.
Breaking down how much a funeral costs can help you determine which services you truly need and establish a realistic budget for your future funeral. Below are some of the average funeral costs you may incur, according to 2023 data from the NFDA:
- Funeral service fee: $2,495
- Funeral home rental: $475
- Funeral home staff for viewing: $475
- Funeral home staff for ceremony: $550
- Cosmetic services: $295
- Vault: $1,695
- Embalming: $845
- Cremation: $400
- Alternative cremation container: $150
- Urn: $295
- Hearse: $375
- Transportation of remains: $395
- Transportation for the family: $175
- Pamphlets and materials: $195
The FTC provides a funeral pricing checklist to help you navigate the process.
Average funeral costs by region
The average cost of a funeral can vary by state. Every year, the NFDA publishes its General Price List Survey. These are the results of their latest report, which is based on data from 2023:
2023 NFDA average funeral costs by region
| Region | Avg. cost of a funeral with viewing, ceremony and burial | Avg. cost of a funeral with viewing and cremation |
|---|---|---|
| New England (CT, ME, MA, NH, RI, VT) | $8,985 | $7,023 |
| Middle Atlantic (NJ, NY, PA) | $8,537 | $6,498 |
| South Atlantic (DE, FL, GA, MD, NC, SC, WV, VA) | $8,023 | $6,103 |
| East South Central (AL, KY, MS, TN) | $7,615 | $5,858 |
| West South Central (AR, LA, OK, TX) | $7,912 | $5,890 |
| East North Central (IL, IN, MI, OH, WI) | $8,280 | $6,120 |
| West North Central (IA, MN, KS, MO, ND, SD, NE) | $8,755 | $6,713 |
| Mountain (AZ, CO, ID, MT, NV, NM, UT, WY) | $7,390 | $5,505 |
| Pacific (AK, CA, HI, OR, WA) | $7,835 | $5,812 |
Funeral expenses have increased over time, but recent data show that average funeral costs are not going up as fast as overall inflation. However, this could be a temporary disparity, with funeral costs potentially increasing more in the future.
No matter where you live, cremation tends to be cheaper than burial, although some locations are certainly more affordable than others.
How to prepare for funeral expenses
For many, death comes without warning, and while loved ones are mourning, they also must face the question of how to pay for such an enormous expense. That is why financial planning is so important before you die. As you are considering how to provide your family with peace of mind, there are a number of ways to prepare for funeral expenses.
Life insurance policy
Securing a life insurance policy is one way for you to contribute to your funeral expenses while you are still alive. Depending on the policy, the death benefit (or insurance payout) your beneficiaries receive once you are gone may cover all or some of your funeral costs. With a larger policy, there may even be additional funds left over for your beneficiaries to help cover larger financial responsibilities, such as the high cost of raising children and a mortgage.
There are different types of life insurance policies to help you plan for end-of-life expenses:
- Term life insurance: Provides coverage for a specified period, such as 10, 20 or 30 years, at a fixed rate. It’s generally more affordable but only pays out if the policyholder passes away during the term. It’s designed to provide financial protection against an unexpected death.
- Whole life insurance: Offers lifetime coverage, with a maximum coverage age of 95 to 121 years, as long as premiums are paid. It also includes a cash value component that slowly grows over time. However, this cash value is not a direct savings account for beneficiaries but rather an asset that the policyholder can access during their lifetime. Upon death, the beneficiaries receive the death benefit, not the accumulated cash value.
For those seeking lifelong coverage with the added benefit of a financial asset during their lifetime, whole life insurance may be an option to explore. However, it’s important to note that whole life policies tend to be more expensive and require a long-term commitment.
Final expense insurance
Final expense insurance, also known as burial or funeral insurance, is a specialized type of life insurance designed to cover the costs associated with end-of-life expenses. This product can be particularly beneficial for individuals with serious medical conditions who may have been denied traditional life insurance coverage. Unlike traditional policies, final expense insurance typically requires less stringent underwriting, making it more accessible to those who might not qualify for other types of coverage.
The death benefits associated with burial insurance are generally small, ranging from $5,000 to $25,000. This amount is usually just enough to cover funeral expenses, which can include costs like burial, cremation and other related services. While the primary purpose of final expense insurance is to cover these end-of-life costs, beneficiaries can also use any remaining funds for other outstanding expenses, such as medical or legal fees. However, it’s important to note that because these policies are easier to obtain, they often come with higher premiums relative to the coverage amount.
Other ways to pay for funeral expenses
Along with life insurance, there are a number of ways to prepare for funeral expenses.
Traditional savings account
You can always use a traditional savings account for funeral costs. The advantage of a savings account is that the money will be kept safe and generally accessible. Choosing a high-yield savings account may help to cover rising funeral costs, even with inflation. However, probate can cause delays, so whoever is paying for the funeral may have to pay for the funeral through other means until the deceased’s assets are evaluated.
Payable-on-death account
A payable-on-death (POD) account can be a better bet than a traditional savings account. This allows you to set up a special funeral savings account. You appoint the person you want to control the funds after you die, and that person can then access those funds simply by showing a valid death certificate. Funds can be accessed immediately when the beneficiary shows the death certificate, and the account does not need to go through probate.
Military burial benefits
Military members are eligible for special burial benefits, while others may opt for a bank loan or prepaid plan through their chosen funeral home.
You can also look into military benefits such as the death gratuity program. This program pays up to $100,000, which is tax-free, for those who die on active duty or while serving certain statuses on reserve. There is also a burial allowance benefit of $300 for a death that is not related to service and of $2,000 for a service-connected death.
Advanced arrangements
A will is another way to prepare in advance for death. The will can designate how your funeral should be conducted and information about how to pay for funeral services.
The will can also designate certain assets that you may leave behind so they go to the right people. You can even state in your will that you would like to have one of your assets sold by a specific person in your family to pay for your funeral expenses.
How to keep funeral costs affordable
Even if you have undergone financial planning or purchased life insurance to cover your funeral costs, it is important to still consider what expenses are worth the price. If you feel that there are other expenses that will take priority over an extravagant memorial service once you are gone, you may want to consider how to keep these expenses low and let your family know about your wishes.
Below are some strategies that may help keep funeral costs affordable:
- Shop around for the best price. Just like with anything else in life, shopping around can help you save money in the long run because not all funeral homes will charge the same amount.
- Choose cremation and provide your own urn. Although cremation costs are typically cheaper than embalming and burial and are, therefore, a great cost-saving alternative, purchasing or obtaining a container to use as an urn ahead of time can save you a few hundred dollars.
- Consider donating your body. In the name of advancing healthcare technology and scientific research, some medical schools will cover expenses related to acquiring your body after you die for the use of medical research. It could be a great way to help scientists understand the impact of various diseases and conditions on the human body.
Frequently asked questions
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