How to Pay for a Funeral: Every Realistic Option

Step 1: Look for money the person left

Before paying out of pocket, check what already exists. Families are often surprised by what turns up.

• Life insurance. Search papers, bank statements for premium payments, and mail from insurers. If you can't find a policy you think exists, the NAIC's free Life Insurance Policy Locator asks participating insurers to search for policies and annuities, using details from the death certificate. If one is found and you are the beneficiary, the insurer contacts you. See does life insurance cover funeral costs?
• Payable-on-death (POD) accounts. The FDIC explains that money in a bank account with a named payable-on-death beneficiary passes directly to that person when the owner dies. Bring a death certificate to the bank.
• A prepaid funeral plan. The FTC warns that if family members don't know a funeral was prepaid, they may pay for the same arrangements twice. Call local funeral homes and check the person's papers.
• Employer, union or pension benefits. Some pay a death benefit to survivors. Call the person's former employer or union.
• The estate. Money and property the person left can pay funeral costs. The CFPB says debts are generally paid from the estate, and family members generally aren't responsible for them personally unless they co-signed, shared a joint account, or another exception applies.

Step 2: Claim the public help that exists

Government help with burial costs is real but limited. No federal program pays for funerals in general; federal help is tied to specific groups or events, such as veterans or a declared disaster.

To find local help, call your county social services or human services office, or ask the funeral director, who often knows what programs exist nearby. Medicare does not pay for funerals. See does Medicare cover funeral expenses? If the person received SSI, see SSI burial funds.

Some local programs require you to apply before arrangements are made, or they won't help if the total bill goes over a set amount. Check the rules first.

Step 3: Use your rights to lower the bill

The FTC Funeral Rule protects you when you deal with a funeral home. You have the right to:

• Get prices over the phone without giving your name or address.
• Receive a written General Price List that itemizes every good and service.
• Buy only the items and services you want, instead of a package.
• See casket and outer burial container prices before you see the products.
• Use a casket or urn you bought somewhere else, with no refusal and no extra fee.
• Choose a basic container, such as cardboard or wood, for cremation. No state law requires a casket for cremation.
• Skip embalming in most cases. No state requires routine embalming, and refrigeration is often an option.
• Get an itemized written statement of what you chose and the total before you pay.

For a sense of scale, the National Funeral Directors Association reported 2023 national medians of $8,300 for a funeral with viewing and burial and $6,280 for a funeral with viewing and cremation. Those figures leave out cemetery costs and items like flowers and an obituary. Choices such as direct cremation, below, usually cost less.

The FTC suggests comparing prices from at least two funeral homes. Many will give prices by phone, so you can compare in an afternoon. Cemeteries without an on-site funeral home are not covered by the Rule, so ask them for written prices too. Our funeral cost calculator and funeral costs guide show what typical items include.

Step 4: Consider options that cost less

A less costly choice can still be a meaningful goodbye. As the FTC notes, you do not need an elaborate funeral to honor someone. See cremation insurance if you are planning ahead for cremation.

Step 5: Pay over time if you must

Many funeral homes expect payment up front or before the service. If the money isn't there yet, these are the common ways to spread it out, ordered from lower to higher risk:

1. Ask the funeral home for a payment plan. Some will agree to installments, especially if life insurance or estate money is coming. Get the terms in writing, including any interest or late fees.
2. Assign an insurance payout. If there is a policy, the beneficiary can sign part of it over to the funeral home. See assigning a policy.
3. Crowdfunding. Online fundraising sites let friends and family chip in. They usually keep a fee and money can take time to arrive, so read the site's terms.
4. Funeral financing and personal loans. Some lenders and funeral homes offer loans or "buy now, pay later" plans for funerals.
5. Credit cards. Widely available, but often a costly way to carry a balance.

Are there loans for funeral expenses? Read this first

Yes. Banks, credit unions, online lenders and some funeral homes offer funeral financing. Before you sign:

• Find the APR. The annual percentage rate shows the yearly cost of borrowing, including interest and fees. Lenders must show it before you sign.
• Add up the total you will repay. Multiply the monthly payment by the number of months. Compare that number to the loan amount.
• Watch for "0% interest" promotions. With some "deferred interest" offers, if the whole balance isn't paid by the deadline, interest is added back from the purchase date, according to the CFPB.
• Don't borrow to pay for extras. Use your FTC rights to trim the bill first, then borrow only what is left.
• You are not required to pay a relative's other debts from your own money in most cases. Don't take a loan because a debt collector pressures you. The CFPB explains the exceptions.

Borrowing at a high interest rate can turn a one-time bill into years of payments. Look at no-cost help and less costly choices first.

Example (hypothetical round numbers): A family faces a $9,000 funeral bill. They find a $5,000 life insurance policy, and the spouse receives the $255 Social Security payment. Choosing a memorial at their church instead of the funeral home lowers the bill to $7,000. They now need about $1,745, which the funeral home agrees to take in three monthly payments. No loan is needed.

Plan ahead to help your family be more prepared

If you are reading this for your own future, a few steps now can help your family be more prepared:

• Write down what you want and share it with family.
• Set up a payable-on-death account for funeral money, or add a named beneficiary to an existing account.
• Consider a small life insurance policy meant for final costs. See burial insurance for seniors and what final expense insurance is.
• If you prepay a funeral, ask what happens if the funeral home closes or you move, and whether you can cancel for a refund. See prepaid funeral plans.
• Keep important papers together and tell someone where they are. Our first 30 days checklist helps families after a death.