How Much Pre-Arranged Funerals Cost

Pre-arranged funerals, also known as prepaid or pre-need funerals, enable people to arrange and pay for their funeral services ahead of time. Estimating the cost of pre-arranged funerals can be very different. The average price for a pre-arranged funeral in America can run from $7,000 to $12,000 for typical burials and $2,000 to $5,000 for cremation. These costs typically cover basic services, caskets (which can cost up to $20,000), urns, memorial services at funeral homes, transportation, and flowers.

Average Costs Associated with Pre-Arranged Funerals

Although fees can differ, knowing average expenses can be useful as a point of reference:

• Traditional Burial: In the United States, a traditional burial, casket, embalming, and funeral service can cost anywhere from $7,000 to $12,000. Adding a burial plot, headstone, and ancillary services could raise this price.

• Cremation: Cremation services are less expensive, typically between $2,000 and $5,000, based on the selected services and memorial.

It should be noted that these are estimates, and actual prices do differ based on personal preferences and variations in regional pricing.

Cost Breakdown of a Pre-Arranged Funeral

The cost of a pre-arranged funeral also differs depending on various factors. The following are the typical costs involved in pre-arranged funerals:

Basic Service Fee

Most funeral parlors offer an initial fee that includes planning, coordination, and paperwork. Such a fee usually varies from $1,000 to $3,000. It caters to services like:

• Procurement of permits that are needed

• Filing death certificates

• Arranging other involved parties

Burial or Cremation Costs

• Burial Costs: A burial includes purchasing a casket, burial plot, and grave marker, along with paying for grave opening and closing services. Depending on the location and type of casket used, burial costs can be between $5,000 and $15,000.

• Cremation Costs: Cremation is typically more affordable, costing between $1,500 and $5,000, depending on the urn and memorial services chosen.

Casket or Urn

• A Typical casket costs between $2000 and $10,000 with more luxurous models costing as much as $20,000.
  
  
• Based ont he material and style, and urn will run anywhere from $100 to $1000.

Funeral Ceremony and Viewing

• • If the family does elec to have a viewing or memorial service, additional costs include:
  • Venue Rental: $500 - $1500
    
    
  • Embalming and body Preparation: $500 - $1500 
    
    
  • Floral Arrangements: $100 - $ 1000
    
    
  • Transportation ( Hearse and Limo): $300 - $1000

Additional Services and Fees

• Obituary Notice: $100 - $500

• Fee for Clergy or Officiant: $200 - $500

• Grave Marker or Headstone: $1,000 - $5,000

Types of Prepaid Funeral Plans

Here is an overview of various types of prepaid funeral plans:

Pre-Need Insurance Policy

• You pay premiums for many years.

• The policy is active so long as payments are current.

• The benefit is paid to the funeral home.

• Numerous funeral service companies partner with Forethought Life Insurance Company (Global Atlantic) to provide this insurance to clients.

Revocable Prepaid Trust-Funded Contract

• Funeral funds are placed in a trust managed by a trustee.

• Money may be contributed in a lump sum or installments.

• The trust may generally be cashed out or canceled at any time.

• The benefit is paid to the funeral home directly.

Irrevocable Prepaid Trust-Funded Contract

• Funds for funeral costs are deposited into an irrevocable trust.

• Similar to the revocable contract, funds may be lump sums or payments.

• The irrevocable trust may have no cash value, and funds cannot be withdrawn.

• Typically named as irrevocable to satisfy state regulations for Medicare or Medicaid benefits.

• The benefit is paid to the funeral home directly.

Benefits of Pre-Arranged Funerals

Pre-arranging a funeral has several benefits, including:

Financial Protection

By prepaying, families can secure today's prices and protect against inflation so that their families are not saddled with increasing expenses.

Stress Reduction for Loved Ones

Funeral planning frees relatives from worrying about stressful financial and logistical choices while they are grieving.

Personalization

People can decide on the aspects of their funeral so that their last wishes are fulfilled.

Avoiding Emotional Overspending

Families can spend more than they should when arranging a funeral under stress. Pre-arrangement means that only necessary costs are included.

Can You Cancel a Prepaid Funeral Plan and Receive a Refund?

You can terminate a prepaid funeral plan, but the procedure and likelihood of a refund will be based on the funding method used.

• If a revocable trust pays for your plan, you can cancel the contract and get most of your money back. The trust will keep a cancellation fee for administrative expenses, though.

• An irrevocable trust, on the other hand, usually cannot be canceled, but it may be assigned to another funeral home; however, this could result in losing any price protection associated with it.

• If an insurance policy pays for your prepaid funeral, you should know that you will usually not receive a refund of the premiums you have paid.

Conclusion

Pre-arranged funerals in the U.S. cost between $7,000 and $12,000 for traditional burials and $2,000 to $5,000 for cremations. Common expenses include basic service fees, caskets, urns, and ceremony costs. There are different types of prepaid plans, including revocable and irrevocable trusts. Factors like location, service choices from funeral homes in Oklahoma City, OK, and additional fees can affect overall costs. Pre-arranging funerals helps families manage finances, reduces stress, and ensures personal wishes are met while avoiding overspending during difficult times.