How to Plan for a Loved One’s Funeral: The Financial Steps

Why Planning Ahead Matters

Nobody wants to think about losing someone they love. But when it happens, families are often forced to make big money decisions while they are grieving. Funerals can cost thousands of dollars, and without a plan, that cost can land on the people who are hurting the most.

Steps Families Can Take

Talk about it early. Ask your loved ones what kind of service they want and whether they prefer burial or cremation. Find out if they have life insurance or a burial policy, and know where important documents like the policy, will and ID are kept.

Compare prices. Under the Federal Trade Commission’s Funeral Rule, funeral homes must give you an itemized price list, so you can choose only the goods and services you want. Do not be afraid to ask questions or get quotes from more than one funeral home.

Consider prepaying or setting money aside. Some families set up a savings account or a preplanned funeral arrangement. If you go that route, make sure you understand exactly what is covered and what happens if plans change.

Lean on Your Community

Churches, community groups and online fundraisers have helped many families cover costs. Asking for help is nothing to be ashamed of.

I am not a financial advisor, so talk to a professional about your situation. Watch the full video above and share it with someone who needs it.