5 Financial Options to Pay for a Funeral


Something many people don’t realize about funerals is that the payment is due upfront before the services are rendered. Not everyone will have the opportunity to plan for their funeral. It’s impossible to be fully prepared for something like this but you can financially prepare for it to reduce the strain on your loved ones. So having a financial plan to pay for the funeral is important for every adult.

There are different ways to pay for a funeral but not each method will be suitable for your financial situation. Each comes with its risks and benefits, so it’s up to you to determine which one would be best for you.

Loans for funerals are one way to pay for the services in case you are struggling financially. Below, we have discussed 5 more ways you can pay for a funeral.

  • Prepaid funeral plans

Funerals can be expensive, so much so that many people plan theirs in advance to save money. Though no one likes to think about their death, planning years in advance can reduce the financial burden on your loved ones. A prepaid funeral plan does just that—a funeral plan that’s been set up in advance with a particular funeral home or cemetery and paid in full. These plans are usually beneficial for the family because these can account for all costs associated with a funeral.

  • Life insurance

Another way of paying for a funeral is life insurance, which provides death benefits as payouts to the beneficiaries mentioned in the bond when the insured passes away. These payments are considered to be non-taxable income and usually come in a single lump sum amount which makes it easier for the family members to pay for the funeral services.

  • Funeral trust

Like a prepaid funeral plan, a funeral trust is a contract between a person and a funeral service provider that can be financed over some time. Individuals assign the provider or funeral home with the funds and that fund gets reserved for their funeral. The only difference between a funeral trust and a prepaid funeral plan is that only financial aspects are considered in a funeral trust. The decisions must be taken by the family members in case of a funeral trust.

  • POD accounts

A POD or payable-on-death account is a contract arrangement that will provide all of a client’s assets contained in the account to the named beneficiaries upon death. The funds transfer is immediate, which ensures the family members get the money quickly before the services. If you want to keep your money out of probate court, then a POD account is a good option for you.

  • Savings account

This isn’t directly applicable to funerals but savings accounts do offer flexibilities if funds need to be used for anything after death. Although the transfer isn’t immediate since money in a normal savings account will need to go through probate, the transfer can be quicker if it’s a joint account with the person to whom you wish to grant the funds to.

Expenses associated with a funeral

Every funeral service provider will charge you a standard fee. Besides that, here are some other costs that you may have to bear:

  • Funeral planning
  • Burial/cremation
  • Viewing/memorial ceremony
  • Flower arrangements, food and beverage
  • Obtaining death certificates
  • Preparing the invitations
  • Transporting the remains


No matter which option you choose from the above, you will have to weigh the pros and cons of each. Most of these options offer high amounts of protection while savings accounts offer the least protection financially. Only you can decide which one would be best based on your financial circumstances and requirements. We hope this helps you understand that you have many options to look into to pay for a funeral.