Your Guide to Funeral Planning | 10.24.2022

Reduce Funeral Cost by Selecting the Right Payment Plans

Reduce Funeral Cost by Selecting the Right Payment Plans

Reviewed By: Scott Ginsberg

Cross Checked By: Elizabeth Siegel


    Funeral costs have increasingly escalated in recent times. Resultantly, people are looking for better payment options to ease their funerary arrangements. While the burden of these costs legally falls on the estate of the deceased, it is common for their family to make contributions to the funeral expenses. The family of the decedent often seeks help from the local community, the state and even funeral homes. 

    Do funeral homes offer good payment plan options?

    The answer is not definite. Most funeral homes expect customers to pay upfront, before the funeral service takes place. In saying this, there have also been many cases where funeral directors have been generous and accepted late payments. Some funeral homes might also make suggestions for cheaper options and work around lower budgets. You may also request your funeral director for repayment options by showing them that you cannot afford to pay the funeral costs upfront. 

    Despite this, such funerary accommodations and assistance are rare. That does not mean all is gloomy. Today, there are many available payment alternatives and modes of financial assistance to help you navigate to the best payment options. This may be through payment plans such as— prepaid burial plans, funeral loans or ways of lowering funeral costs— opting for  cremation over  burial, comparing provider options or finding cheaper alternatives.

    Payment Methods

    Funeral Loan and Line of credit 

    You might want to consider taking out a funeral loan or a line of credit if you are unable to pay the home upfront and have a payoff plan in place. Although these are relatively easy to secure if you have good credit, they must be treated as an emergency payment plan as they could potentially negatively affect your credit. Since funeral loans are personal loans, they require both credit check and credit pull and also come with high-interest rates. If you happen to enter a bad loan contract, you might not be able to get out of it very easily. 

    Prepaid Burial Plan

    Such a plan is ideal to use if you or your deceased loved one make a plan with a funeral house in advance. It functions like a savings account usable at the home you have a signed contract. At a time of grief, you are eased from the stress of paying for the funeral at the time of passing. In this way, you are able to put away money instead of dealing with current costs and skip out on inflation rates. However, you must be mindful of the fact that prepaid burial plans are not usually transferable. If the funeral home closes anytime prior to the preneed burial plan being utilized, your luck has run out. 

    Alternative Assistance for Funeral Financing 

    If taking a personal loan is not a viable option for you, there are other alternatives you could consider. You could consider crowdfunding for community support since most people are looking for ways of supporting one another in difficult times. This might also help to avoid the struggles of securing a loan in the first place. There is also the option of considering a $255 payout on social security as a one-time death benefit to a family member. This could be useful to cover certain funeral costs. Government assistance might be another viable option to cover funeral costs. Most cities, towns, states and countries alike offer funeral or burial assistance for those who are in need of these benefits, especially the poor. 

    Ideas to Save Money on a Funeral 

    There are ways of reducing your costs just by making the right choices in arrangements. Funerals tend to be much more expensive than they need to be. The first thing you might consider doing is choosing cremation, which costs about $ 2,300, over a burial which averages $9,000. You must conduct some research on provider options before signing a contract with a funeral home. Additionally, you can make the purchase of your funeral items online, directly from the vendors, to avoid high prices. By using online platforms to publish obituaries, you are provided with extra space and features. Moreover, you can save upward of $200 this way.  Finally, you could organize and plan the memorial on your own and in a public space of your choice, at low rental costs. Not only are you saving money this way, but you can also add a personal touch to the funerary arrangements.