Former Vice President Dick Cheney honored at funeral
Former Vice President Dick Cheney was honored at his funeral in Washington’s National Cathedral.
More Americans are going into debt after a loved one’s death.
That’s one finding from an annual survey by Debt.com, which examines how people finance end-of-life costs.
The survey found that 37% of Americans have taken on debt after a loved one’s death, the highest figure in three recent years of polling. Of those who assumed debt, 59% used credit cards. The survey reached 1,000 Americans in October.
“This one was a little shocking,” said Howard Dvorkin, chairman of Debt.com. “And it kind of makes sense.”
Inflation has lifted consumer prices by at least 24% since early 2020, according to Bankrate, seeding recent talk of a national affordability crisis.
In the Debt.com survey, 4 in 10 Americans said they couldn’t cover future funeral costs for a loved one without going into debt.
Generation X is deepest in debt over death, with 43% reporting they have taken on debt for funerals and other expenses.
Americans underestimate end-of-life costs
Americans may also be underestimating funeral costs. In the Debt.com survey, 22% of respondents opined that the average funeral costs less than $5,000, and most put the cost at less than $10,000.
A survey by the insurance company Choice Mutual, published in September, reported similar findings. More than half of respondents ages 45 and over pinned funeral costs at less than $10,000. That poll, conducted by YouGov, reached 2,502 adults.
As of 2023, the median cost of a funeral nationwide was $7,848, according to the National Funeral Directors Association. But that figure is two years old. Some in the industry say funeral costs are now significantly higher.
“When you factor in funeral services, the casket, printed materials, professional services, body transportation and preparation,the total can easily approach $15,000 to $20,000,” said Anthony Martin, CEO of Choice Mutual.
In the Choice Mutual survey, only 39% of older adults said they had taken steps to prepare for the financial costs that will follow their own death.
We don’t like to think – or talk – about death
Both reports touch on a recurring theme in the funeral and estate planning worlds: Many Americans don’t like to think or talk about death.
Most Americans understand the importance of estate planning, but only 31% have a will, according to the Trust & Will 2025 Estate Planning Report.
More than half of Americans have no estate plan, according to the report, which draws on a survey of 10,000 adults.
Even when older Americans have estate plans, many are reluctant to talk about them, according to a Nov. 13 report from Fidelity Investments.
“Most people are not having the family conversation,” said Cody Barbo, founder and CEO of Trust & Will. “People know that this is important, but they don’t get around to doing it.”
When there’s no funeral plan, survivors scramble
When people die without end-of-life plans, survivors are often left scrambling.
“They have to make all of these choices on how to memorialize a loved one, all while they’re freshly grieving a loved one,” said Martin of Choice Mutual.
In their haste and grief, survivors may end up making rash decisions on funeral arrangements they cannot afford.
“Most people, they go into a funeral home and they’re like, ‘I just want to be done with it,’” Martin said. “They’re probably not going to scrutinize the costs. They’re probably not going to call five places and compare.”
Here are a few tips on managing end-of-life expenses, from the nonprofit Funeral Consumers Alliance:
Plan ahead
It’s tough to walk into a funeral home after a loved one has died and start shopping for funeral arrangements.
A candid conversation ahead of time can help families decide which services matter, and which do not. Choices include burial vs. cremation, whether to hold a graveside service, and whether to have a formal funeral or a more informal memorial.
“Having the conversation is probably the most important thing,” said Barbo of Trust & Will.
Know your consumer rights
The Federal Trade Commission’s Funeral Rule protects consumers and their decisions at a difficult time.
Here are a few rules:
You have the right to see a price list from the funeral home. You generally have the right to choose which funeral services you want, and which to wave off. You have the right to buy a casket somewhere else. Compare prices
If you plan ahead, you can compare funeral costs at different homes. The price differences may surprise you.
“The choice of funeral home is often the single biggest factor affecting how much you pay,” the Funeral Consumers Alliance reports.
If a home posts prices online or can send them by email, the Alliance says, that’s usually a good sign.
Consider a simple service
All funeral providers must offer “direct cremation” and “direct burial,” according to the consumer group. Those services exclude embalming and ceremony, and they are relatively affordable.