Former Vice President Dick Cheney honored at funeral
Former Vice President Dick Cheney’s funeral was held at the Washington National Cathedral.
More Americans are finding themselves in debt after the death of a loved one.
That’s one of the findings from Debt.com’s annual survey of how people cover end-of-life expenses.
The survey found that 37% of Americans have incurred debt after the death of a loved one, the highest number in three years. Of those who incurred debt, 59% used credit cards. The survey was conducted in October among 1,000 Americans.
“This was a little shocking,” said Debt.com Chairman Howard Dvorkin. “And that kind of makes sense.”
According to Bankrate, consumer prices have increased by at least 24% since the beginning of 2020 due to inflation, which has been the latest talking point about the national affordability crisis.
In a Debt.com survey, 4 in 10 Americans say they won’t be able to cover the future funeral costs of a loved one without going into debt.
Gen
Americans underestimate end-of-life costs
Americans may also be underestimating funeral costs. In a Debt.com survey, 22% of respondents said the average funeral cost was less than $5,000, with most costing less than $10,000.
A study released in September by insurance company Choice Mutual reported similar findings. More than half of respondents ages 45 and older said their funeral costs were less than $10,000. The poll, conducted by YouGov, surveyed 2,502 adults.
As of 2023, the median funeral cost nationwide was $7,848, according to the American Funeral Directors Association. But that number is from two years ago. Some industry insiders say funeral costs are now significantly higher.
“When you factor in funeral services, caskets, printing, professional services, and transportation and preparation of the body, the total can easily reach $15,000 to $20,000,” said Anthony Martin, CEO of Choice Mutual.
In the Choice Mutual survey, only 39% of seniors said they were taking steps to prepare for the financial costs that would arise after their death.
we don’t want to think or talk about death
Both reports touch on recurring themes in the world of funeral and estate planning. That said, many Americans don’t like to think or talk about death.
Most Americans understand the importance of estate planning, but only 31% have a will, according to the Trust & Will 2025 Estate Planning Report.
More than half of Americans don’t have an estate plan, according to a report based on a survey of 10,000 adults.
Even if older Americans have estate plans, many are reluctant to talk about them, according to a Nov. 13 report from Fidelity Investments.
“Most people don’t have family conversations,” says Kody Barbo, founder and CEO of Trust & Will. “People know this is important, but they just don’t get around to it.”
Survivors panic when there are no funeral plans
When a person dies without an end-of-life plan in place, survivors are often left in limbo.
“They have to make all kinds of choices about how to memorialize their loved one, even as they grieve their loved one anew,” said Choice Mutual’s Martin.
In their impatience and sadness, families may make hasty decisions about funeral arrangements that they cannot afford.
“Most people go to a funeral home and are like, ‘I want to be done with this,'” Martin said. “They’re probably not going to scrutinize the costs. They’re probably not going to call five places and compare.”
Here are some tips for managing end-of-life expenses from the nonprofit organization Funeral Consumers Alliance.
plan ahead
After a loved one passes away, it can be overwhelming to enter a funeral home and begin making funeral arrangements.
Having an open discussion upfront can help families decide which services are important and which are not. Choices include burial or cremation, whether to have a graveside service, and whether to have a formal funeral or a more informal memorial service.
“Having the conversation is probably the most important thing,” said Trust & Will’s Balbo.
Know your consumer rights
The Federal Trade Commission’s funeral regulations protect consumers and their decisions during difficult times.
Here are some rules:
- You have the right to see the price list from the funeral home.
- In general, you have the right to choose which funeral services you would like and which funerals you would like to forego.
- You have the right to purchase the coffin elsewhere.
compare prices
If you plan ahead, you can compare funeral costs for different homes. You may be surprised at the price difference.
“Your choice of funeral director is often the single biggest factor influencing how much you pay,” the Funeral Consumers Union reports.
If a home can list its price online or send it via email, that’s usually a good sign, according to the Alliance.
Let’s consider a simple service
According to the consumer group, all funeral service providers must offer “direct cremations” and “direct cremations.” These services do not include embalming or rituals and are relatively affordable.
