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When a loved one dies, grieving family members and friends often are
confronted with dozens of decisions about the funeral - all of which must be
made quickly and often under great emotional duress. What kind of funeral should
it be? What funeral provider should you use? Should you bury or cremate the
body, or donate it to science? What are you legally required to buy? What other
arrangements should you plan? And, as callous as it may sound, how much is it
all going to cost?
Each year, Americans grapple with these and many other questions as they
spend billions of dollars arranging more than 2 million funerals for family
members and friends. The increasing trend toward pre-need planning - when people
make funeral arrangements in advance - suggests that many consumers want to
compare prices and services so that ultimately, the funeral reflects a wise and
well-informed purchasing decision, as well as a meaningful one.
A Consumer Product
Funerals rank among the most expensive purchases many consumers will ever
make. A traditional funeral, including a casket and vault, costs about $6,000,
although "extras" like flowers, obituary notices, acknowledgment cards or
limousines can add thousands of dollars to the bottom line. Many funerals run
well over $10,000.
Yet even if you're the kind of person who might haggle with a dozen dealers
to get the best price on a new car, you're likely to feel uncomfortable
comparing prices or negotiating over the details and cost of a funeral, pre-need
or at need. Compounding this discomfort is the fact that some people "overspend"
on a funeral or burial because they think of it as a reflection of their
feelings for the deceased.
Pre-Need
To help relieve their families of some of these decisions, an increasing
number of people are planning their own funerals, designating their funeral
preferences, and sometimes even paying for them in advance. They see funeral
planning as an extension of will and estate planning.
Planning
Thinking ahead can help you make informed and thoughtful decisions about
funeral arrangements. It allows you to choose the specific items you want and
need and compare the prices offered by several funeral providers. It also spares
your survivors the stress of making these decisions under the pressure of time
and strong emotions.
You can make arrangements directly with a funeral establishment or through a
funeral planning or memorial society - a nonprofit organization that provides
information about funerals and disposition but doesn't offer funeral services.
If you choose to contact such a group, recognize that while some funeral homes
may include the word "society" in their names, they are not nonprofit
organizations.
One other important consideration when planning a funeral pre-need is where
the remains will be buried, entombed or scattered. In the short time between the
death and burial of a loved one, many family members find themselves rushing to
buy a cemetery plot or grave - often without careful thought or a personal visit
to the site. That's why it's in the family's best interest to buy cemetery plots
before you need them.
You may wish to make decisions about your arrangements in advance, but not
pay for them in advance. Keep in mind that over time, prices may go up and
businesses may close or change ownership. However, in some areas with increased
competition, prices may go down over time. It's a good idea to review and revise
your decisions every few years, and to make sure your family is aware of your
wishes.
Put your preferences in writing, give copies to family members and your
attorney, and keep a copy in a handy place. Don't designate your preferences in
your will, because a will often is not found or read until after the funeral.
And avoid putting the only copy of your preferences in a safe deposit box.
That's because your family may have to make arrangements on a weekend or
holiday, before the box can be opened.
Prepaying
Millions of Americans have entered into contracts to prearrange their
funerals and prepay some or all of the expenses involved. Laws of individual
states govern the prepayment of funeral goods and services; various states have
laws to help ensure that these advance payments are available to pay for the
funeral products and services when they're needed. But protections vary widely
from state to state, and some state laws offer little or no effective
protection. Some state laws require the funeral home or cemetery to place a
percentage of the prepayment in a state-regulated trust or to purchase a life
insurance policy with the death benefits assigned to the funeral home or
cemetery.
If you're thinking about prepaying for funeral goods and services, it's
important to consider these issues before putting down any money:
- What are you are paying for? Are you buying only merchandise, like a casket
and vault, or are you purchasing funeral services as well?
- What happens to the money you've prepaid? States have different requirements
for handling funds paid for prearranged funeral services.
- What happens to the interest income on money that is prepaid and put into a
trust account?
- Are you protected if the firm you dealt with goes out of business?
- Can you cancel the contract and get a full refund if you change your mind?
- What happens if you move to a different area or die while away from home?
Some prepaid funeral plans can be transferred, but often at an added cost.
Be sure to tell your family about the plans you've made; let them know where
the documents are filed. If your family isn't aware that you've made plans, your
wishes may not be carried out. And if family members don't know that you've
prepaid the funeral costs, they could end up paying for the same arrangements.
You may wish to consult an attorney on the best way to ensure that your wishes
are followed.
The Funeral Rule
Most funeral providers are professionals who strive to serve their clients'
needs and best interests. But some aren't. They may take advantage of their
clients through inflated prices, overcharges, double charges or unnecessary
services. Fortunately, there's a federal law that makes it easier for you to
choose only those goods and services you want or need and to pay only for those
you select, whether you are making arrangements pre-need or at need.
The Funeral Rule, enforced by the Federal Trade Commission, requires funeral
directors to give you itemized prices in person and, if you ask, over the phone.
The Rule also requires funeral directors to give you other information about
their goods and services. For example, if you ask about funeral arrangements in
person, the funeral home must give you a written price list to keep that shows
the goods and services the home offers. If you want to buy a casket or outer
burial container, the funeral provider must show you descriptions of the
available selections and the prices before actually showing you the
caskets.
Many funeral providers offer various "packages" of commonly selected
goods and services that make up a funeral. But when you arrange for a funeral,
you have the right to buy individual goods and services. That is, you do not
have to accept a package that may include items you do not want.
According to the Funeral Rule:
- you have the right to choose the funeral goods and services you want (with
some exceptions).
- the funeral provider must state this right in writing on the general price
list.
- if state or local law requires you to buy any particular item, the funeral
provider must disclose it on the price list, with a reference to the specific
law.
- the funeral provider may not refuse, or charge a fee, to handle a casket you
bought elsewhere.
- a funeral provider that offers cremations must make alternative containers
available.
What Kind of Funeral Do You Want?
Every family is different, and not everyone wants the same type of funeral.
Funeral practices are influenced by religious and cultural traditions, costs and
personal preferences. These factors help determine whether the funeral will be
elaborate or simple, public or private, religious or secular, and where it will
be held. They also influence whether the body will be present at the funeral, if
there will be a viewing or visitation, and if so, whether the casket will be
open or closed, and whether the remains will be buried or cremated.
Among the choices you'll need to make are whether you want one of these basic
types of funerals, or something in between.
"Traditional," full-service funeral
This type of funeral, often referred to by funeral providers as a
"traditional" funeral, usually includes a viewing or visitation and formal
funeral service, use of a hearse to transport the body to the funeral site and
cemetery, and burial, entombment or cremation of the remains.
It is generally the most expensive type of funeral. In addition to the
funeral home's basic services fee, costs often include embalming and dressing
the body; rental of the funeral home for the viewing or service; and use of
vehicles to transport the family if they don't use their own. The costs of a
casket, cemetery plot or crypt and other funeral goods and services also must be
factored in.
Direct burial
The body is buried shortly after death, usually in a simple container. No
viewing or visitation is involved, so no embalming is necessary. A memorial
service may be held at the graveside or later. Direct burial usually costs less
than the "traditional," full-service funeral. Costs include the funeral home's
basic services fee, as well as transportation and care of the body, the purchase
of a casket or burial container and a cemetery plot or crypt. If the family
chooses to be at the cemetery for the burial, the funeral home often charges an
additional fee for a graveside service.
Direct cremation
The body is cremated shortly after death, without embalming. The cremated
remains are placed in an urn or other container. No viewing or visitation is
involved, although a memorial service may be held, with or without the cremated
remains present. The remains can be kept in the home, buried or placed in a
crypt or niche in a cemetery, or buried or scattered in a favorite spot. Direct
cremation usually costs less than the "traditional," full-service funeral. Costs
include the funeral home's basic services fee, as well as transportation and
care of the body. A crematory fee may be included or, if the funeral home does
not own the crematory, the fee may be added on. There also will be a charge for
an urn or other container. The cost of a cemetery plot or crypt is included only
if the remains are buried or entombed.
Funeral providers who offer direct cremations also must offer to provide an
alternative container that can be used in place of a casket.
Choosing a Funeral Provider
Many people don't realize that they are not legally required to use a funeral
home to plan and conduct a funeral. However, because they have little experience
with the many details and legal requirements involved and may be emotionally
distraught when it's time to make the plans, many people find the services of a
professional funeral home to be a comfort.
Consumers often select a funeral home or cemetery because it's close to home,
has served the family in the past, or has been recommended by someone they
trust. But people who limit their search to just one funeral home may risk
paying more than necessary for the funeral or narrowing their choice of goods
and services.
Comparison shopping need not be difficult, especially if it's done before the
need for a funeral arises. If you visit a funeral home in person, the funeral
provider is required by law to give you a general price list itemizing the cost
of the items and services the home offers. If the general price list does not
include specific prices of caskets or outer burial containers, the law requires
the funeral director to show you the price lists for those items before showing
you the items.
Sometimes it's more convenient and less stressful to "price shop" funeral
homes by telephone. The Funeral Rule requires funeral directors to provide price
information over the phone to any caller who asks for it. In addition, many
funeral homes are happy to mail you their price lists, although that is not
required by law.
When comparing prices, be sure to consider the total cost of all the items
together, in addition to the costs of single items. Every funeral home should
have price lists that include all the items essential for the different types of
arrangements it offers. Many funeral homes offer package funerals that may cost
less than purchasing individual items or services. Offering package funerals is
permitted by law, as long as an itemized price list also is provided. But only
by using the price lists can you accurately compare total costs.
In addition, there's a growing trend toward consolidation in the funeral home
industry, and many neighborhood funeral homes are thought to be locally owned
when in fact, they're owned by a national corporation. If this issue is
important to you, you may want to ask if the funeral home is locally owned.
Funeral Costs
Funeral costs include:
1. Basic services fee for the funeral director and staff
The Funeral Rule allows funeral providers to charge a basic services fee that
customers cannot decline to pay. The basic services fee includes services that
are common to all funerals, regardless of the specific arrangement. These
include funeral planning, securing the necessary permits and copies of death
certificates, preparing the notices, sheltering the remains, and coordinating
the arrangements with the cemetery, crematory or other third parties. The fee
does not include charges for optional services or merchandise.
2. Charges for other services and merchandise
These are costs for optional goods and services such as transporting the
remains; embalming and other preparation; use of the funeral home for the
viewing, ceremony or memorial service; use of equipment and staff for a
graveside service; use of a hearse or limousine; a casket, outer burial
container or alternate container; and cremation or interment.
3. Cash advances
These are fees charged by the funeral home for goods and services it buys
from outside vendors on your behalf, including flowers, obituary notices,
pallbearers, officiating clergy, and organists and soloists. Some funeral
providers charge you their cost for the items they buy on your behalf. Others
add a service fee to their cost. The Funeral Rule requires those who charge an
extra fee to disclose that fact in writing, although it doesn't require them to
specify the amount of their markup. The Rule also requires funeral providers to
tell you if there are refunds, discounts or rebates from the supplier on any
cash advance item.
Calculating the Actual Cost
The funeral provider must give you an itemized statement of the total cost of
the funeral goods and services you have selected when you are making the
arrangements. If the funeral provider doesn't know the cost of the cash advance
items at the time, he or she is required to give you a written "good faith
estimate." This statement also must disclose any legal, cemetery or crematory
requirements that you purchase any specific funeral goods or services.
The Funeral Rule does not require any specific format for this information.
Funeral providers may include it in any document they give you at the end of
your discussion about funeral arrangements.
Services and Products
Embalming
Many funeral homes require embalming if you're planning a viewing or
visitation. But embalming generally is not necessary or legally required if the
body is buried or cremated shortly after death. Eliminating this service can
save you hundreds of dollars. Under the Funeral Rule, a funeral provider:
- may not provide embalming services without permission.
- may not falsely state that embalming is required by law.
- must disclose in writing that embalming is not required by law, except in
certain special cases.
- may not charge a fee for unauthorized embalming unless embalming is required
by state law.
- must disclose in writing that you usually have the right to choose a
disposition, such as direct cremation or immediate burial, that does not require
embalming if you do not want this service.
- must disclose in writing that some funeral arrangements, such as a funeral
with viewing, may make embalming a practical necessity and, if so, a required
purchase.
Caskets
For a "traditional," full-service funeral:
A casket often is the
single most expensive item you'll buy if you plan a "traditional," full-service
funeral. Caskets vary widely in style and price and are sold primarily for their
visual appeal. Typically, they're constructed of metal, wood, fiberboard,
fiberglass or plastic. Although an average casket costs slightly more than
$2,000, some mahogany, bronze or copper caskets sell for as much as $10,000.
When you visit a funeral home or showroom to shop for a casket, the Funeral
Rule requires the funeral director to show you a list of caskets the company
sells, with descriptions and prices, before showing you the caskets. Industry
studies show that the average casket shopper buys one of the first three models
shown, generally the middle-priced of the three.
So it's in the seller's best interest to start out by showing you higher-end
models. If you haven't seen some of the lower-priced models on the price list,
ask to see them - but don't be surprised if they're not prominently displayed,
or not on display at all.
Traditionally, caskets have been sold only by funeral homes. But with
increasing frequency, showrooms and websites operated by "third-party" dealers
are selling caskets. You can buy a casket from one of these dealers and have it
shipped directly to the funeral home. The Funeral Rule requires funeral homes to
agree to use a casket you bought elsewhere, and doesn't allow them to charge you
a fee for using it.
No matter where or when you're buying a casket, it's important to remember
that its purpose is to provide a dignified way to move the body before burial or
cremation. No casket, regardless of its qualities or cost, will preserve a body
forever. Metal caskets frequently are described as "gasketed," "protective" or
"sealer" caskets. These terms mean that the casket has a rubber gasket or some
other feature that is designed to delay the penetration of water into the casket
and prevent rust. The Funeral Rule forbids claims that these features help
preserve the remains indefinitely because they don't. They just add to the cost
of the casket.
Most metal caskets are made from rolled steel of varying gauges - the lower
the gauge, the thicker the steel. Some metal caskets come with a warranty for
longevity. Wooden caskets generally are not gasketed and don't have a warranty
for longevity. They can be hardwood like mahogany, walnut, cherry or oak, or
softwood like pine. Pine caskets are a less expensive option, but funeral homes
rarely display them. Manufacturers of both wooden and metal caskets usually
warrant workmanship and materials.
For cremation:
Many families that opt to have their loved ones
cremated rent a casket from the funeral home for the visitation and funeral,
eliminating the cost of buying a casket. If you opt for visitation and
cremation, ask about the rental option. For those who choose a direct cremation
without a viewing or other ceremony where the body is present, the funeral
provider must offer an inexpensive unfinished wood box or alternative container,
a non-metal enclosure - pressboard, cardboard or canvas - that is cremated with
the body.
Under the Funeral Rule, funeral directors who offer direct cremations:
- may not tell you that state or local law requires a casket for direct
cremations, because none do;
- must disclose in writing your right to buy an unfinished wood box or an
alternative container for a direct cremation; and
- must make an unfinished wood box or other alternative container available
for direct cremations.
Burial Vaults or Grave Liners
Burial vaults or grave liners, also known as burial containers, are commonly
used in "traditional," full-service funerals. The vault or liner is placed in
the ground before burial, and the casket is lowered into it at burial. The
purpose is to prevent the ground from caving in as the casket deteriorates over
time. A grave liner is made of reinforced concrete and will satisfy any cemetery
requirement. Grave liners cover only the top and sides of the casket. A burial
vault is more substantial and expensive than a grave liner. It surrounds the
casket in concrete or another material and may be sold with a warranty of
protective strength.
State laws do not require a vault or liner, and funeral providers may not
tell you otherwise. However, keep in mind that many cemeteries require some type
of outer burial container to prevent the grave from sinking in the future.
Neither grave liners nor burial vaults are designed to prevent the eventual
decomposition of human remains. It is illegal for funeral providers to claim
that a vault will keep water, dirt or other debris from penetrating into the
casket if that's not true.
Before showing you any outer burial containers, a funeral provider is
required to give you a list of prices and descriptions. It may be less expensive
to buy an outer burial container from a third-party dealer than from a funeral
home or cemetery. Compare prices from several sources before you select a model.
Preservative Processes and Products
As far back as the ancient Egyptians, people have used oils, herbs and
special body preparations to help preserve the bodies of their dead. Yet, no
process or products have been devised to preserve a body in the grave
indefinitely. The Funeral Rule prohibits funeral providers from telling you that
it can be done. For example, funeral providers may not claim that either
embalming or a particular type of casket will preserve the body of the deceased
for an unlimited time.
Cemetery Sites
When you are purchasing a cemetery plot, consider the location of the
cemetery and whether it meets the requirements of your family's religion. Other
considerations include what, if any, restrictions the cemetery places on burial
vaults purchased elsewhere, the type of monuments or memorials it allows, and
whether flowers or other remembrances may be placed on graves.
Cost is another consideration. Cemetery plots can be expensive, especially in
metropolitan areas. Most, but not all, cemeteries require you to purchase a
grave liner, which will cost several hundred dollars. Note that there are
charges - usually hundreds of dollars - to open a grave for interment and
additional charges to fill it in. Perpetual care on a cemetery plot sometimes is
included in the purchase price, but it's important to clarify that point before
you buy the site or service. If it's not included, look for a separate endowment
care fee for maintenance and groundskeeping.
If you plan to bury your loved one's cremated remains in a mausoleum or
columbarium, you can expect to purchase a crypt and pay opening and closing
fees, as well as charges for endowment care and other services. The FTC's
Funeral Rule does not cover cemeteries and mausoleums unless they sell both
funeral goods and funeral services, so be cautious in making your purchase to
ensure that you receive all pertinent price and other information, and that
you're being dealt with fairly.
Veterans Cemeteries
All veterans are entitled to a free burial in a national cemetery and a grave
marker. This eligibility also extends to some civilians who have provided
military-related service and some Public Health Service personnel. Spouses and
dependent children also are entitled to a lot and marker when buried in a
national cemetery. There are no charges for opening or closing the grave, for a
vault or liner, or for setting the marker in a national cemetery. The family
generally is responsible for other expenses, including transportation to the
cemetery. For more information, visit the Department of Veterans Affairs'
website at www.cem.va.gov. To reach the regional Veterans office in your area,
call 1-800-827-1000.
In addition, many states have established state veterans cemeteries.
Eligibility requirements and other details vary. Contact your state for more
information.
Beware of commercial cemeteries that advertise so-called "veterans'
specials." These cemeteries sometimes offer a free plot for the veteran, but
charge exorbitant rates for an adjoining plot for the spouse, as well as high
fees for opening and closing each grave. Evaluate the bottom-line cost to be
sure the special is as special as you may be led to believe.
This information was provided by www.ftc.gov consumer protection guide.
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