Step 1: Decide burial or cremation
Cremation costs an average of $2,000–$5,000 versus $8,000–$12,000 for a traditional burial with viewing. Neither is inherently better — the choice is personal and often shaped by family or religious traditions. Costs vary by region.
Step 2: Choose a funeral home
Federal law (the FTC Funeral Rule) requires funeral homes to give you an itemized price list on request — take advantage of it. Prices for identical services can vary by 30% or more between funeral homes in the same city.
Step 3: Document your wishes
Write down your preferences: burial or cremation, funeral home, service style, music, readings, cemetery plot, obituary details. Give copies to your spouse, adult children, and executor. This is the single most helpful thing you can do for your family.
Step 4: Fund the arrangements
Most families use a small final expense insurance policy to guarantee funds are available fast. A tax-free lump sum is paid to a chosen beneficiary — typically within 24–72 hours of a claim — and the family uses it to pay the funeral home directly.
- $10,000–$15,000 covers a modest traditional funeral
- $5,000–$10,000 covers a full cremation service
- $25,000+ leaves cushion for small debts and family
Step 5: Review every 3–5 years
Funeral costs rise about 3–4% per year. Review your coverage amount every few years to make sure it still matches expected costs — especially if you're locked into a fixed-benefit policy.