The Importance of Planning for Funeral and Burial Costs
Last month we talked about the importance of advance care planning to ensure that our loved ones are aware of our healthcare and financial wishes if we are unable to make critical decisions for ourselves. But what about funeral and burial preferences? Most people like to avoid this topic for obvious reasons, but it’s a vital aspect of not just financial, but also emotional preparedness for families.
Understanding the financial burden of funerals
Funerals and burials can be unexpectedly expensive, with costs accumulating rapidly for services, caskets, and burial plots. According to World Population Review, the average costs in the U.S. range from $7,000 to $9,000. Decisions about cremation and “green” burials can change that number.
These expenses can place a significant financial strain on families who are unprepared, especially if it becomes necessary for family members to travel to the town where a love one has passed. Advance planning by researching and comparing different funeral homes and burial services is recommended. Taking the time to explore various options and make informed decisions in advance will help you both plan and manage the costs so your survivors don’t have this added burden.
Exploring veteran benefits and insurance coverage
For veterans, it’s particularly important to explore specific benefits that may cover some or all funeral and burial expenses. The U.S. Department of Veterans Affairs offers eligible veterans burial in a VA national cemetery and a grave marker, among other benefits, which can significantly reduce the financial strain on families. Insurance section should include Pre-Need Insurance and Burial Trust Life Insurance options. Reviewing existing life insurance policies is also important; some policies include coverage for funeral expenses, which can provide substantial relief. Ensuring that these benefits are understood and activated when needed is a key component of advance planning.
Communication and clarity are key
For older adults, it’s important not only to make these plans but also to communicate them clearly to family members. Detailing one’s wishes for end-of-life arrangements and how these expenses will be managed can prevent conflicts and confusion at a time that will already be stressful for everyone. Include information about funds you’ve earmarked for funeral costs, any you have already paid for, and insurance policies that provide coverage.
Why this planning matters
Having these discussions and making these decisions in advance provides a sense of control and peace of mind, ensuring that one’s final wishes are respected and that the family is spared from making tough decisions under stress. Ultimately, the goal of including funeral and burial planning in advance care discussions is to alleviate the emotional and financial burdens on loved ones, allowing them to focus on healing and celebrating the life of the deceased.
We at Longevity Income Solutions often help our clients create strategies to address funeral and burial expenses. Some who are executors of an estate may find they can claim deductions that reduce the estate’s tax burden. Our team of experts will help you make the best decisions for yourself and your heirs. Contact us for more information.