How Do I Pre-Plan for My Funeral Expenses?

June 30th, 2025

Thinking about your own death or that of your loved ones isn’t easy. Death is something that most of us tend to think of as a far-in-the-future event, though logically we know that it can happen at any time. But planning for your death in advance allows you to make informed choices about how your body will be disposed of, what type of funeral or memorial service you wish to have and how much you wish to spend on these things. It also gives you time to contact providers, compare prices for various services and budget for final expenses before they come due. Additionally, and very importantly, pre-planning allows you to discuss your choices with your loved ones so they don’t have to make difficult decisions and complex arrangements in the immediate aftermath of your death.  

Virtually all arrangements around final disposition can be planned in advance. For example, you can choose whether you wish to be cremated or buried, whether or not you wish to be embalmed, and what kind of celebration of life or memorial service you would like to have. You can also choose where you wish to be buried or, if you choose cremation or aquamation (alkaline hydrolysis), where your ashes should be stored or dispersed. Sea burial, donating your body to science or donating tissue and organs are other options you may wish to explore. If legal in your state, you may also choose natural organic reduction (NOR), commonly known as human composting.  You may also consider looking for a cemetery that allows for green burial; this method of final disposition is becoming more popular as people realize the impact of their choice on our environment.  Pre-planning will give you the opportunity to look at all of these things and make a truly informed choice. 

With that being said, making all of these decisions and arrangements is not a simple process, which is why starting early is always a good idea.

Four Phases of Pre-Planning for Funeral Expenses

Planning for any major life event is a huge undertaking. Engaged couples and their families spend months — if not years — planning weddings, attending to every detail with the utmost care. Planning for what happens after you die requires the same attention to detail if you want to ensure that your wishes are carried out. But the process doesn’t need to be daunting. It can actually be enjoyable if you break it down into these manageable steps.

Determine your choices around final disposition

Before contacting providers or seeking out specific services, spend some time thinking about what you want to happen after you die. Your decisions will likely be informed by your values, beliefs and religious affiliation as well as the traditions of the culture to which you belong. But even within that framework, there are usually many options from which to choose. Here are some of the questions you will need to answer:

• Do you wish to be buried or cremated? Or do you have another choice in mind?
• Do you want your body to be embalmed? (Except in rare cases, embalming is not mandated by law.)
• Do you want a viewing? If so, where should it be held? In your home? At a funeral home? Somewhere else?
• Would you consider a home funeral, or do you want a funeral home involved?
• Do you want a formal ceremony to commemorate your death? What kind? 
• Would you like to have a departy or a celebration of your life before you die? 
• Do you wish to donate organs or tissue?
• If you are being buried, what kind of coffin do you want and where do you want to be buried?
• If you are being cremated or aquamated, what do you want to happen to your ashes afterward?

Be sure to discuss these and other decisions with your loved ones, and document them in your advance directive. That’s the best way to ensure that your wishes will be honored when the time comes. 

Decide on a funeral budget 

In the U.S. today, many people mistakenly believe that a “traditional” funeral is the only way to say goodbye to those we love. But as the cost of funerals, burials, and/or cremations has skyrocketed over the past few decades, many people have come to question that philosophy and look for more budget-friendly ways to dispose of and commemorate their dead. After all, the love we feel for each other can’t be measured in dollars and cents — a simple home funeral followed by direct cremation or immediate burial can save you thousands of dollars and be even more personally meaningful for your loved ones than an expensive funeral and burial with all of the trappings offered by a funeral home. It may also be possible to bury a loved one on your own property.  You just need to consult with your local health department to make sure you follow all county setback rules.  Just consider these approximate costs provided by Lincoln Heritage Insurance in 2024:

Basic Funeral Services: These are the costs associated with the use of a funeral home for either burial or cremation.

• Basic service fee — $2,300
• Transportation of the body to the funeral home — $350
• Preparation of the body — $275
• Embalming — $775
• Car for the transportation of flowers and other belongings — $130
• Use of the staff and facility for the viewing and funeral — $915
• Hearse — $350
• Memorial print package, including items such as memorial directories, registration book and acknowledgement cards — $130

Total — $5245

Additional Burial Costs

• Burial plot — $525-$5000
• Burial vault — $550-$7500
• Opening and closing fee — $350-$3500
• Casket — $2500 and up

This brings the total cost of a funeral and burial before the purchase of a casket to at least  $6,500 and well over $10,000 after adding even a modestly priced casket purchased from a funeral home.

Additional Cremation Costs

• Casket rental — $1,000
• Urn — $250
• Cremation — $300

Again, this represents the average cost of these items if you purchase them from a funeral home in the United States.  

It is very important to note, however, that none of these purchases is mandated by law, and consumers have the right to decline any of them with the exception of the basic service fee. Per the Funeral Rule of 1984, you have the right to purchase your casket elsewhere; the funeral home must accept this casket and is not allowed to charge you a handling fee.  

By contrast, a home funeral, in which family and loved ones care for the body and hold a viewing in the home, is almost cost-free. It does involve some preparation, however. The body will need to be kept cool with ice or cold packs, and after-death care will require the participation of a few people who are physically strong enough to turn the body and move it when the time comes to transport the person to their final destination. The family may also need to rent a truck or large SUV to transport the body if they choose to do so themselves, and you will need to purchase a burial container of some sort (required for both burial and cremation.) However, this can be a very inexpensive cardboard container or an affordable coffin purchased from an independent vendor on the internet.

Add to this the cost of direct cremation — about $700 on average across the United States — and you can plan a loving, meaningful, dignified funeral for under $1,000. 

Find service providers

Once you have determined your choices for final disposition and how much you wish to spend, it’s time to search for providers and begin to compare costs. It’s a good idea to start your search by speaking with friends and family to see if there is a specific provider they recommend. You can also search online to find providers in your area and look at Better Business Bureau ratings and reviews. 

As you begin to contact providers, keep in mind that the Federal Trade Commission’s Funeral Rule requires that all providers of funeral services, including crematories and cemeteries, give a written, itemized price list of all of the goods and services they offer to anyone who asks for one. (This is known as the general price list, or GPL.) This list is yours to keep, so it’s a smart idea to request one from each provider you visit, and then compare costs when you get home. Pricing can vary greatly even among providers in the same general vicinity, so this is a crucial step. 

Another important point to consider is the FTC’s requirement that consumers must be allowed to choose only the goods and services they want from the general price list. Many funeral providers will entice customers with “package deals,” but you have the right to purchase only the line items you truly want. Many of the goods and services offered by funeral homes can be purchased elsewhere at a much more affordable price. (Note: the Funeral Rule does not apply to third-party sellers or cemeteries.)

Keep in mind, too, that many states license funeral directors and embalmers, although licensing requirements vary a great deal. In California, for example, the Cemetery and Funeral Bureau (CFB) licenses all funeral establishments, all funeral directors, and all privately owned cemeteries. It also maintains a publicly available database that allows consumers to verify a provider’s license status, including any citations it has received. You may also call the CFB at (916) 574-7870 to verify a license if you have difficulty doing so online. 

Finalize your choices and how you wish to pay for them

After comparing funeral service providers and costs, the next step is to decide what goods and services you want to purchase and how you will pay for them. Many funeral service providers offer what are known as “preneed plans,” which are a contract between the consumer and the service provider in which the consumer agrees to buy goods and services in advance of their death and funds the purchase through an annuity, a life insurance policy or a trust. At the time of the agreement, a third party, usually an insurance company or a trustee, assumes responsibility for managing the funds. When the individual dies, the funds are released to the funeral home or cemetery to pay for the goods and services the person chose. 

Pros and Cons of Pre-Need Plans

Pre-need funeral or cremation plans involve a significant financial investment, so it’s important to weigh the pros and cons carefully before you decide to enter into a pre-need contract. According to Lincoln Heritage Insurance, these are some of the benefits and pitfalls:

PROS	CONS
Peace of mind in knowing that your loved ones will not be burdened with planning and paying for your funeral when you die.	If the funeral home you contract with goes out of business, your family may need to assume the responsibility for your funeral expenses regardless of the contract you had.
You choose where you are going to be buried or cremated.	Most pre-need plans are not transferable, so if you move to a new location you may be unable to use the plan you paid for.
Most of the time prices are guaranteed, which means you lock in today’s prices. Since funeral costs generally go up year to year, this could represent considerable savings.	Refunds are not always available when you enter into a pre-need contract. So if you change your mind, money you’ve paid into the account may be lost. Also be sure to check that your policy has guaranteed prices (and what items are part of that guarantee); do not assume prices are guaranteed.
You pay only for what you want and need.	The amount of the contract is paid directly to the funeral home or crematory, not your next of kin.

Further, the laws around preneed agreements vary widely from state to state, so legal protections for consumers vary a great deal as well. What’s more, the Funeral Rule offers no protection to consumers who enter into preneed contracts, and there are no minimum federal standards as to what a preneed contract should include. Additionally, the federal government does not require full disclosure of pre-need contract terms, so the consumer may inadvertently assume a great deal of risk. 

To help protect yourself before entering into a preneed contract, it is advisable to get answers to the following questions in writing before you sign any documents:

• How long does the policy take to pay off the contract? What happens if I die before it has been paid off?
• What happens if the funeral home closes or changes ownership?
• What specifically is included in the pre-need contract? Are there any exclusions?
• What happens if I move away? Can I transfer the contract to another funeral home?
• Are prices guaranteed regardless of whether costs increase? What items are excluded from the guaranteed prices?
• What interest rate do I earn on the money paid? Where does the interest go? 
• Can I cancel the contract if I change my mind? Will I get a refund of the full amount paid?
• If there is money left in my account after the funeral, where does it go? 

Additional Ways to Fund Your Expenses in Advance

A preneed plan is not the only option available to pre-plan for final expenses. Once you have an idea of how much your preferred method of disposition and ensuing memorial (if you want one) will cost, you can choose one of the following instead. We recommend investigating the benefits and drawbacks of each to make sure it is the right choice for your situation:

• Purchase Final Expense Insurance

Final expense insurance policies are typically relatively small life insurance policies of $5,000 to $30,000 that consumers purchase specifically for funeral and burial costs. They are generally very easy to qualify for and require no medical exam. When you die, the amount of the policy is paid directly to your beneficiaries, who can then use the money for funeral expenses and any other final bills. 

• Create a Payable Upon Death (POD) Account or Totten Trust

A payable upon death account is a simple and effective way to transfer money to a named beneficiary after your death. You may designate any account you own as a POD account — checking, savings, CDs, and other deposit certificates are all eligible. You simply notify your financial institution of the named beneficiary (only one beneficiary is allowed) who fills out a form and returns it to the bank. The beneficiary can then withdraw the funds — avoiding probate — upon providing proof of your death to the bank. 

• Open a Joint Savings Account

Probably the simplest way to set money aside for your funeral and memorial expenses, a joint savings account allows either account holder to withdraw funds at any time. This allows the joint account holder to withdraw funds for your final expenses immediately upon your death, without providing a death certificate. Additionally, money in the account can be used for expenses incurred before you die, such as home caregivers or medical bills. 

Conclusion

In summary, pre-planning for funeral expenses is an important part of end-of-life planning. The process involves 

• Researching options for final disposition of your body after death
• Choosing a method of final disposition
• Researching costs among local service providers
• Choosing how to pay for your funeral and final expenses among the various options available to you. 

Handling these important decisions before your death can give you peace of mind and spare your loved ones the financial and emotional burden of arranging your funeral while also grieving your loss. 

Need more information about funeral planning? See our Comprehensive Step-by-Step Planning Guide: Choosing Funeral Arrangements and Final Disposition for detailed explanations of options and action-steps.

Sources:

Funeral Consumers Alliance: Pre-planning and Pre-paying found online at 

https://funerals.org/get-help/pre-planning-advance-directives/

Lincoln Heritage Funeral Advantage: How Much Does a Funeral Cost? Found online at

https://www.lhlic.com/consumer-resources/average-funeral-cost/#breakdown

National Funeral Directors Association: Licensing Boards and Requirements: Found online at 

https://nfda.org/careers/licensing-requirements

Investopedia: Payable Upon Death Accounts Benefits and Drawbacks: Found online at

https://www.investopedia.com/terms/p/payableondeath.asp