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Does Preplanning Your Funeral Save Money?

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How much would you estimate a funeral costs?

If you were in the ballpark between $7,000 - $10,000, you’re correct, according to research from the NFDA. But if you estimated dramatically lower, you’re not the only one.

Planning a funeral often leads to sticker shock. That’s because many of us only plan one or two funerals in our lifetime, and the costs of goods (caskets, urns, personalization items) and services (burial, cremation, funeral home staff) can range across the funeral home you chose, location or year.

However, there is a way to protect yourself and surviving family members when you pass from rising costs—and that’s through preplanning.

Preplanning your funeral is an act of love for your family. It’s your final gift to them and a way to prevent added stress during an already emotional time. It also gives you the opportunity to choose how you want to be remembered.

This process includes choosing everything from a burial or cremation, the type of gathering you want, caskets, headstones and urns, personal touches and more.

Keep in mind, preplanning doesn’t mean you have to pre-fund your funeral, but it is a good idea. Below we share several reasons why.

Lock in Today's Prices

Preplanning and pre-funding your funeral locks in today’s prices to save you from rising funeral costs.

While there is no “right” age to preplan your funeral, the earlier you complete it, the more money you will save. Prices continue to rise each year, whereas a preplanning policy locks in today’s rates. And once you pay it off, there’s nothing more to think about.

For example, the average funeral cost was $7,181 in 2014. By the year 2050, that same funeral could cost more than $41,500. Based on these numbers, a 40 year old who preplans in 2024 would pay $11,697 instead of $31,036 when they turn 60—a savings of $19,339.

Statistically, we’re living longer, which means funeral prices will continue to rise as we age, so no matter what stage of life you’re in, preplanning can still save your family money.

Not only that, but preplanning also allows you to document your final wishes and pay for what you want. Sometimes, families are unsure what their loved one would have wanted, and they end up overspending. Or they’re unable to budget for what they “think” a loved one would have wanted and feel guilt for not being able to afford it.

No Inflation or Overhead Costs

Preplanning your funeral is a good opportunity to save money because it doesn’t allow inflation or overhead costs to increase the total amount you pay.

Inflation impacts every industry and funeral services are included. When you pre-plan a service and pay in advance, you are avoiding the impact of inflation or rising costs. Some items you can designate in your preplanning policy and prepay for include:

  • Final disposition method. This could mean burial, cremation or another method of “disposing” of a lost loved one's remains.
  • Final gathering/funeral. This is a ceremony and/or memorial service honoring the individual who passed, with a burial or cremation before or after.
  • Personalization items. To make a funeral more meaningful, people choose to incorporate things ranging from customized memory boards showcasing special photographs to music and mementos.
  • Final resting place. You want to choose a comforting location that may have potential significance to an individual’s life.

More Convenient Payment Options

Prepaid funeral policies are specifically designed to pay for the funeral. By preplanning final arrangements ahead of time, the services selected are locked in at today’s rates to save you and your family from rising funeral costs.

If you choose to preplan, depending on your funeral home of choice, you often have two options when it comes to paying for the service:

  1. Monthly payments. This option allows you to pay for the funeral expenses comfortably over time so you aren’t just out a large amount of money at once.
  2. Up front payment. This option allows you to pay for the entire funeral up front so you don’t have to think about it again down the line.

It’s important to note that although a pre-funded funeral policy safeguards your family from having to pay out of pocket entirely, you may still have to pay for outside costs like cemeteries and headstones.

Get More Information About the Emotional & Financial Benefits of Preplanning

There are many practical reasons for preplanning your funeral, but we understand that the actual process can be overwhelming. Our caring advisors at Busch can walk you through each step with ease. Set up a preplanning consultation today so you won’t have to think about it for a long time.

Schedule a Preplanning Consultation

Julie Graf Skinner
Julie Graf Skinner
Funeral director, embalmer and licensed insurance agent helping families make wise decisions about preplanning for nearly 30 years. Photography and crafting are just some of Julie’s creative outlets. Graciously serving Busch families since 1999.

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