Best Ways to Cut Funeral Costs
Tracy Lee • April 13, 2020
I have been an Insurance Agent for quite some time. When one becomes a Funeral Director, Insurance is one of those collateral duties that compliments your skill set and assists clients as they come to the funeral home looking for assistance for their future end of life (death) needs. Insurance offers a vast selection of products based on the needs of the client. The issues related to product selection are that although clients can vocalize their concerns, they often do not understand which product provides the most efficient solution for them. In most cases, their purchase decision will be based on one of two facts. The first one being the product presented to them at the point of purchase and the second one is generally based on the cost of goods.
In other words, the client is usually at the mercy of their insurance agent and their pocket book. Of course, we all must live within our means, so if our purse strings are small, so must be our expenses. It is incumbent upon one’s insurance agent to present an appropriate product that will cover the client’s needs at an affordable price. On the topic of end of life (death) expenses, this generally means that your insurance agent will present two options. A pre-funded funeral contract (Pre-Need Insurance) or a life insurance policy.
A pre-funded funeral contract or Pre-Need Insurance Policy is a policy that is purchased for the specific amount of your funeral expenses. It is a wonderful product for the consumer because it freezes the price of tomorrow’s funeral at today’s prices. If you have ever paid any attention to the cost of funerals, you will realize immediately what a bargain this product presents. During the last four decades, funeral expenses have risen 1328%. (Forbes Mag, April 2014)
A Pre-Need Insurance Policy is the premier method by which a consumer will receive monumental savings on their end of life (death) expenses. It is only one of three ways to save on death expenses, and it is usually the least utilized method by consumers. The average cost of a traditional American funeral is currently $8,000 - $16,000 depending on the area of the country in which you are located. If you are 24 years old, the price of your funeral is at the bottom end of the average ($8,000), and you die at age 64; following proven inflation rates for funeral expenses over the last four decades (1,328%), your funeral will cost $82,240.00 upon your death. If at age 24 you had purchased a Pre-Need Insurance Policy, upon your death, your funeral would cost the original price of $8,000.
Most 24-year-olds shopping for insurance purchase life insurance rather than pre-need insurance. The reason is that the cost appears to be substantially lower while the benefit appears to be substantially higher. Nothing could be farther from the truth. Shall we apply a term life policy and see how the finances work out? At age 24, a young male in good health may purchase a $250,000.00, 10-year term policy for as low as $14.00 per month. At 5 years the premium automatically jumps to $38.00 and the benefit drops to $100,000. At the end of the 10 years, the young male is now 34; he has paid $3,120 and has no insurance benefit. The funeral that he would have purchased for $8,000 is now priced at $20,560. At 34 years of age, he must now select a new insurance policy at higher rates and must cover higher funeral expenses that are continuing to rise.
The second method to cut your expenses by substantial proportions is to utilize an independently (family) owned and operated the funeral home. Independently (family) owned and operated funeral homes charge an average 42% less per funeral than do corporately owned funeral homes. (Forbes Mag, April 2014) If you live in an area where the average cost of a funeral is $8,000, you could possibly find funerals ranging from $10,680 at a corporate funeral home down to as low as $6,320 at an independent (family) owned funeral home. Shopping around could save you quite a bit of money on your expenses.
The third method is to select a funeral that contains fewer services. This method is by far the least effective way to save on end of life (death) expenses; however, it is the most commonly selected method by consumers suffering lower financial means. An example of a funeral containing fewer services would be a graveside service or an immediate burial.
Many readers might wonder why I have not listed cremation as a cost saver. The reason I have not listed cremation as a cost saver is that as we see a drop in the average annual number of burials within the US, the cost of cremation will begin to rise to balance the bottom line of the death care provider. In the not too distant future, consumers will see the cost of cremation rise to equal and even overtake the cost of burial. A business prices its products based on its costs to produce their goods to the consumer. Whether a consumer purchases a burial or a cremation, the death service provider retains certain costs within his bottom line that he cannot eliminate. Those costs are large expensive buildings, embalming rooms, fleet vehicles, insurance, taxes, employees, inventory, etc. By law and through regulation, the death care provider is required to have and maintain these items of business whether consumers use them or not. The expense of these items must be built into the businesses cost of goods and reflected in the price points. As the number of funerals sold at any given death care facility dwindles and the number of cremations rises, those expenses will begin to spread over and equalize into the cremation cost of goods column. When that equalization begins, the pricing of cremations will increase and the pricing of funerals may or may not lower.
The past two weeks have been difficult for me. I have suffered the loss of a dear friend and have served families that have suffered great losses. The COVID-19 pandemic has caused unwarranted loss, stress, and heartache to so many people this year. Not only have we lost loved ones, but we have lost our economy, our comfort, and our security as Americans. Everywhere I look, it seems that people are rude and uncaring toward each other when what we need is love. I wish we could be kind to each other, considerate to each other, and help each other through our difficulties rather than burning cities, burning businesses, and tearing apart what makes up great, our Union. Americans are the most blessed people in the world. We live in a time of convenience and wealth. Why is it then that we can’t add kindness and respect to our society? Why must there be murders and brutal attacks on innocent people walking down the street? I work with families every day who would give all that they have for just one more moment with their loved one to say, “I’m sorry” or “I love you.” Time is so precious, but even more precious is the way that we treat others. For if we treat others with contempt, we will reap the bitter reward of hatred. Hate eats a person from the inside out, and no matter how hard a hateful person tries to find happiness, it will never come to them. I know this because I see it every day. A hateful heart has no room for happiness. Happiness only comes to those who love. Love is like light. Light is the only thing that is stronger than the dark. If you have a completely dark room and you strike a match, the light from that match will push the darkness away and light up the room. Conversely, if you have a room filled with light and you cup your hands to create a spot of darkness. As soon as you open your hands, the dark is gone. Light overpowers it just as love overpowers hate. Love is the only thing that is stronger than hate. If you strike an ember of love in the heart of someone full of hate, love will grow and overtake their hatred. In my profession, love is very important. I see all too often those who have pushed love aside thinking that they were winning an argument or for some other ridiculous reason. What I see when this happens is that at the end of life, those who were foolish and let hatred get the best of them suffer the most. They remain miserable for the rest of their lives. Don’t be one of these people. Don’t let hatred get the best of you. And most assuredly, let us not allow hatred to overtake our country. I don’t want to live in a world filled with hatred and discontent. I want happiness and love for all. I especially want love in your life when you suffer loss because believe me, when the grim reaper knocks, it’s too late to cry for one more moment to say, “I’m sorry” or “I love you.” At that moment, the weight of hatred crushes every hope you ever had to make amends, to accomplish happiness, or to right any wrong you may have perpetrated. It’s too late and you are the person who will suffer the consequences of your vicious actions. You are the person who will have no friends, no love, and who will die alone; miserable because of your hatred and terrible deeds. I know because I see it in so many people who thought they could just make a statement, a judgment, or an action and not suffer the consequences. In the end, it’s the hateful people who suffer the consequences. They die alone without love or support. Their needs are not met and they writhe in misery. I lost a dear friend this past week. He was kind, loving, and good. He made the world a better place, and he made my life happier through his actions of kindness toward me. I wish everyone alive could have known my friend. Christ died to make man holy, and my friend John took up his offer. John was a holy man. He lived his life serving others, teaching others, and helping anyone who needed help. He was filled with love and he shared his love with those who needed it. If we could all be like John, the world would be an amazingly happy and beautiful place. John is gone and I feel the weight of his loss deeply in my soul. He leaves a legacy of service to our nation, service to Christ, and service to anyone who needed it. He was a good man, a great man, and now he is gone. I will have the honor of directing his memorial service in a few days. The church will be bursting as those who John served make their way there to express their sorrow and love for him. I will be one of those people. John’s legacy will continue in his absence because he ignited goodness, love, and service in the hearts of those about him. May we all understand and embrace John’s mission in life to serve and love our fellow beings. Doing so will bring us the greatest rewards. It will fill our lives with the greatest gifts on earth; joy, happiness, and love. This is my prayer for you, for our nation, and for the world during this time of uncertainty and discontent. Thank you, John, for being my friend, and my God bless you as you arrive home, never to suffer more, the pains of the world nor heartaches of men. Godspeed.
I received a first call late last night and was therefore at the hospital when I ran into an acquaintance of mine. As we spoke, she told me that her father had recently died. She began to cry and I offered to send over a set of my grief books (Mourning Light I, II, & III) to her office the following morning. I wrote her a sympathy card and delivered the books about 15 minutes ago. She had not yet arrived at her office, so I left the books and card with her secretary. The following is the note I wrote in the sympathy card. I thought I would share it, in hopes that it might help others who mourn as well. Dear Friend, February will be the 2nd anniversary of my grandson’s death. It is said that “Death is Final”; that is untrue. The pain and loneliness remain in my soul, and it feels as though I held his lifeless body, yesterday, in my arms. That day broke me; it almost killed me. Had I not had the love and support of my husband and children, I don’t think my sanity would have remained with me. The pain continues to crush my soul with anguish. There are 4 things that have helped me survive the debilitating pain of losing my grandson, and I wanted to share them with you in hopes that you might find peace in them as well. Prayer Prayer was, and continues to be, my saving grace. Without the love and promise of Christ’s redeeming grace, peace would remain unobtainable. Recounting my Experience Sharing my story out loud made it real. It took away my fear. It gave me power over the chaos of pain. Information As a certified grief counselor, knowing what to expect and whether it was normal or abnormal helped keep my worries at bay. The books that I have sent over are filled with information, plainly and simply written, to help you understand and identify the symptoms of grief, as well as recovery’s signs and secrets. Journaling Writing down my anguishes, thoughts, pains, worries, and fears helped me to let them go. I was able to organize myself, and it gave me hope for my future. I am sorry for the dreadful sorrow in your heart, and the pain that infiltrates your daily existence. I understand that breathing feels unnatural, it takes effort to continue on, and that peace eludes you. I wish that death did not exist, but it is a reality that the both of us know all too well; one that we must endure. I believe that families are forever, that we are all God’s children, and that we will reunite with our loved ones across the veil as we too, one day, experience death. Until that day arrives, however, I pray that you and I will live our lives as emissaries of Christ, basking in his grace, and recipients of his glory. I hope that as you suffer the loss of your daddy that you will feel comfortable in reaching out to others, and that you might call me should you need assistance. The pain of grief should never be carried nor suffered in silence, nor alone. Reach out and allow those who love and care for you to lighten your burdens. Life will never be as it once was, but it will improve as you share priceless moments of peace with those who remain by your side. I hold you in high esteem, and pray that Christ’s promise will grace your soul. With Deepest Regards, Tracy Lee My name is Tracy Renee Lee. I am a Certified Grief Counselor (GC-C), Funeral Director (FDIC), published author, syndicated columnist, and co-founder of the “Mikey Joe Children’s Memorial” and Heaven Sent, Corp. I write books, weekly bereavement articles, and Grief BRIEFs related to understanding and coping with grief. I am the American Funeral Director of the Year Runner-Up and recipient of the BBB’s Integrity Award. It is my life's work to comfort the bereaved and help them live on, as well as educate adults in the needs of surviving children.