It’s common knowledge that funerals can be expensive, but there are a number of ways families can pay for funeral service charges that make it easier to cover the total cost.
While some funeral homes prefer to be paid up front, others bill after services rendered and most funeral providers accept credit cards as a form of payment. Family members can also share the cost of funeral arrangements. Here are some other ideas to consider when deciding how to pay for a funeral:
Proceeds from a life insurance policy can be used to pay for funeral costs. Life insurance proceeds usually go to the named beneficiary/beneficiaries, who then decide how much of the proceeds can be put towards funeral expenses. Keep in mind that life insurance payouts are not immediate, thus funds may need to be set aside to cover final expenses prior to the funeral if it appears there will be a significant delay with the policy closeout process.
Also known as final expense insurance, burial insurance is a type of insurance coverage specifically for funeral costs and other final expenses such as medical bills, hospice care, unpaid debts, and taxes. This may be a valid option for those who don’t want their life insurance benefits to be spent on funeral fees and charges, or for seniors who don’t need a full life insurance policy but want affordable coverage for end-of-life expenses.
If you need help covering the expense of a funeral, there are several avenues available in the form of financial and social assistance programs. These programs often fall under federal and state guidelines but are also offered by non-profit organizations and community support agencies.
There are several methods to raise funds to pay for a funeral. Using online crowdfunding platforms is a popular option where families can easily set up a free and personalized memorial site for their loved one to collect donations online. You can also seek financial support using other tried and true fundraising methods such as bake sales, silent auctions, memorial walkathons, etc.