The Cost of Funeral Services

In the aftermath of a loved one's death, the last thing you want to consider is money. However, the reality is that making a loved one's final arrangements can be extremely expensive. For example, the median cost of a casketed funeral with a viewing and a ceremony, followed by burial, was $7,848 in 2021, according to the National Funeral Directors Association (NFDA). Understanding typical funeral costs and exploring how these vary by arrangement and location can help you financially prepare for these expenses.

Historically, a burial was the preferred arrangement for a funeral. However, burial rates have steadily declined over the years — from 61.4% in 2005 to 38.8% in 2020. The NFDA foresees that this trend will continue along the same path until 2040.

There are several contributing factors, such as environmental and religious connections. However, the primary one is the price — the median cost of a funeral, followed by a burial, is $7,848.

The price can be broken down into a few main categories: service fees, the casket, the hearse, viewing and ceremony facilities.

It's essential to know that there are more affordable options available. For example, immediate burial only costs $3,495 ($2,825 if you provide the container). Although it doesn't include a viewing or a ceremony, you'll still have a graveside service.

The number of cremations has steadily increased since 2005. In 2015, cremation rates in the U.S. surpassed burial rates for the first time. The trend has continued since then.

The NFDA's 2022 consumer survey showed that over 40% of people prefer a cremation to a burial. However, despite not choosing a burial for a loved one, over a quarter still wanted a full funeral service. That means arranging for a viewing and a ceremony before the cremation.

Cremation with a full funeral service in 2021 is a median of $6,970. Although less expensive than burials, it still requires a significant amount. MoneyGeek shows the typical inclusions in this funeral service and its costs.

Only 24% of cremations in 2021 had casketed adults with a viewing. A more significant portion (41%) opted for direct cremation. It's a more affordable option, with a median cost of $2,550 ($2,455 if the family provides the container). However, there is no viewing, visitation or ceremony.

The cost of funerals doesn't just vary due to arrangements. Your location also plays a part. Whether you opt for a burial or a cremation, the median amount changes depending on your state.

MoneyGeek presents a heatmap of this — areas with darker hues represent more expensive funeral costs, while those in lighter shades indicate more affordable rates.

The NFDA survey also highlights several items that may add to the cost of funeral services. These include different casket types, urns and vaults, among others. The table below can help you determine how each would affect your overall burial expenses.

Costs for funeral services can add up quickly, and you may need to dip into your savings as you're getting everything in order. However, if your loved one invested in final expense life insurance, it can lessen the financial burden significantly.

Seniors typically benefit the most from this type of whole life insurance. Although the death benefit payout is smaller than standard life insurance policies, it's enough to help the insured's beneficiaries cover final expenses.

As with all insurance policies, several factors affect premiums. A ten-year difference in age can make a considerable difference in the rate for the same coverage amount.

The visual below provides a snapshot of the possible cost of coverage, depending on your age and preferred policy limits.

The cost of funeral expenses can be high, contrary to what some people may expect, and it can be overwhelming. Here are the most commonly asked questions about funeral service costs. These answers may help you if you’re experiencing the tragic loss of a loved one.

Knowing the next step can help ease our minds in the midst of tragedy. These online resources explore areas such as mortality rates in the U.S. and life insurance. They may help you with your future financial decisions.

• U.S. Mortality Rates by the Numbers: See trends in deaths and death rates across several dimensions, such as age, gender and ethnicity. MoneyGeek’s page also explores the leading causes of death in the U.S.
• Life Insurance Riders: Everything You Need to Know: You might have encountered the term “rider” when reading about life insurance. MoneyGeek’s page explains what it is and how you can make the most of it.
• What Types of Death Are Not Covered by Life Insurance?: A life insurance policy covers most causes of death but not all. See which ones are exceptions to the rule.
• Life Insurance Beneficiaries: How to Choose the Right Person: MoneyGeek shares steps to select a beneficiary and avoid common mistakes when naming the person who will receive your death benefits.
• How Long Does It Take to Get a Life Insurance Payout?: Losing a loved one is terrible, and a late payout can add stress to an already difficult situation. MoneyGeek shares the insurance payout details, helping you prepare for possible payout delays.