How Much Does a Funeral Cost? (2023)

Funeral, burial and other end-of-life costs can come as a shock. Many people are surprised to learn these costs are much higher than expected. Whether you’re dealing with the loss of a loved one or simply trying to plan for your end-of-life expenses, it's a good idea to know what to expect when paying for funeral arrangements.

According to the most recent data from the National Funeral Directors Association (NFDA), the national median cost of a funeral with a viewing and burial is $7,848. Those who choose cremation may pay slightly less, as the national median cost of a funeral with cremation is $6,971. This article breaks down the cost of a funeral and how you can prepare for the financial burden of a funeral, such as using life insurance to cover funeral expenses.

These are some of the costs that go into funeral arrangements and end-of-life services.

When a loved one passes away, the last thing you want to think about is how you’re going to pay for their funeral. To reduce the burden on family members during this difficult time, you can prepare for funeral costs in advance using savings tools like life insurance, payable-on-death accounts or savings accounts.

Life insurance is a type of insurance contract that helps protect the financial wellbeing of your loved ones after your death. When you pass away, your beneficiaries receive a payout from the life insurance company, called a death benefit. This essentially lets you prepay for funeral expenses through your life insurance premiums. Additionally, death benefit payouts generally don't go through the probate process. That means that your loved ones won't have to wait for a complicated court system to get the money you left for funeral expenses. There are two main categories of life insurance.

A life insurance policy is a convenient way to prepare for funeral expenses. Many life insurance policies offer large death benefit amounts that let your loved ones pay for your funeral and use the remaining benefit as living expenses for years to come. You can get the best price on life insurance by buying when you’re young and healthy. However, even people in poor health can get life insurance to cover their funeral costs. Called final expense life insurance or burial insurance, this type of whole life policy has lower death benefits than traditional life insurance but offers coverage with no medical exam. Many final expense life insurance policies are also guaranteed-issue, meaning nearly everyone qualifies for coverage, regardless of health.

A payable-on-death (POD) account is a unique type of bank account that lets you name a direct beneficiary to your account. While you are alive, the account remains entirely in your control. When you pass away, your named beneficiary receives any assets in the account. Payable-on-death accounts are beneficial for funeral expenses because they skip the probate process. Generally all your beneficiary needs to collect the assets is their identification and a death certificate.

Technically any type of bank or credit union account can be a POD account as long as your bank lets you name a specific beneficiary. You could add a POD beneficiary to your main checking account. However, if your goal for the account is to cover your funeral costs, you may want to open a POD account specifically for this purpose. A funeral expenses payable-on-death account gives you a specific location to build up savings for funeral and burial expenses. Be sure to check how many beneficiaries you can add to the account when opening your POD account. Some POD accounts only let you name one beneficiary, which could put the account into the probate process if your beneficiary passes away before you.

Traditional savings accounts are an easy and accessible way to save up for funeral costs. If you have access to a bank or credit union, you should be able to open a savings account. Additionally, most savings accounts earn interest on the money you deposit. Interest earnings could help cover more of your funeral and final expense costs over time. You can increase your interest earnings by looking for a high-yield savings account. When you pass away, the money you’ve saved in your account can go directly to repaying your loved ones for funeral expenses.

There are two major drawbacks to savings accounts over options like a life insurance policy — probate and the need to save manually. Savings accounts generally don't have beneficiaries. When you pass away, your loved ones will have to wait until the account goes through the probate process to access funds. You can avoid this by adding a joint account holder, but that person will have full access to the money during your lifetime. Traditional savings accounts and POD accounts also require you to manually save up the funds for your funeral costs. You’ll have to be sure to deposit enough money in the account over the years to pay for your final expenses. A life insurance policy, which requires you to pay your premiums, could be a better fit if you’re unsure if you’ll be able to save enough on your own.

With the average cost of a funeral being several thousand dollars, you may want to look for ways you can cut your funeral expenses. The good news is there are several options to lower the total cost of your funeral. First, it's important to know your rights when shopping for funeral and burial services and goods. The Federal Trade Commission (FTC) enforces the Funeral Rule — a government regulation that helps protect consumers from unfair funeral pricing policies. Some rights offered by the rule include the right to:

In addition to knowing your rights under the Funeral Rule, there are things you can do to lower your burial costs, including:

Paying for funeral arrangements can be overwhelming, especially if you’re already dealing with the loss of a loved one. The first step is to consider your budget and what you want out of a funeral:

Be sure to shop around and use your rights under the Funeral Rule to get pricing information in writing. Having your options in front of you makes it easier to compare and find the best fit for you and your family.

A life insurance policy is generally recommended as the easiest way to pay for funeral and burial costs. You can generally get a better price on life insurance the earlier you buy a policy, but even seniors or people in poor health can get coverage with policies like final expense insurance. Payable-on-death accounts can also help your loved ones have immediate access to the money they need to cover your funeral costs. No matter what method you choose, planning ahead for your funeral expenses can lower the stress on your loved ones after your passing.

For some people, $10,000 is enough to pay for a funeral. The median cost of a funeral is almost $8,000, but can range to over $10,000 depending on the options you choose. Carefully consider what casket, burial, funeral service and memorial options you want to help you estimate if $10,000 is enough for funeral costs in your area.

Traditional funeral services with visitation and burial cost around $7,848. The median cost of a funeral with cremation, on the other hand, is approximately $6,971.

The most expensive part of a funeral is typically the basic services fee of a funeral home. The median cost of basic services fees is about $2,300. If you choose a traditional funeral and burial, your highest cost will likely be a metal casket. Metal caskets can cost around $2,500.

Direct burials or direct cremations are low-cost options for burials. Direct burials and cremations involve cremating and burying the body of the deceased immediately after death. This leaves little to no time to host a traditional funeral, but many people who choose this option host a celebration of life after the burial to memorialize their loved one.

The easiest way to save money on a funeral is to shop around for funeral homes, service providers and retailers like casket manufacturers. Comparing prices between providers gives you a chance to find similar services for lower costs or negotiate a lower cost with a particular provider.

You can also save money on a funeral by choosing cremation over a traditional burial. Cremation services are typically less expensive than visitation services. You can further save money by purchasing an urn or burial container from an affordable provider. Under the Funeral Rule, your funeral home must let you use a container you provide at no extra cost.

Our goal at the MarketWatch Guides Team is to provide you with comprehensive, unbiased recommendations you can trust. To rate and rank life insurance companies, we created a thorough methodology and analyzed each company by combing through online policy information, speaking to agents via phone, reading customer reviews for insight into the typical customer experience, and reviewing third-party financial reliability scores.

After collecting this data, we scored each company in the following categories: coverage, riders, availability and ease of use and brand trust. To learn more, read our full life insurance methodology for reviewing and scoring providers.

Tara Seboldt is a writer specializing in insurance and personal finance. Prior to writing full-time, Tara spent several years in the financial advisory and life insurance industry. She uses her professional background to help readers better understand complicated (and sometimes boring) topics. When she's not writing, you’ll find Tara hiking with her dog, riding her horse or planning her next ski trip.

Sabrina Lopez is an editor with over six years of experience writing and editing digital content with a particular focus on home services, home products and personal finance. When she is not working on articles to help consumers make informed decisions, Sabrina enjoys creative writing and spending time with her family and their two parrots.