Why Do Funerals Cost So Much

Why Do Funerals Cost So Much

There is one thing that you can count on in this life and it is that you are not going to live forever, in the physical sense. With the graying of the Baby Boomer generation comes the necessity of facing some end of life decisions. Some of these decisions may include the loss of a parent, sibling or spouse. When those decisions are being made you may ask yourself, “Why do funerals cost so much?”

According to the National Funeral Directors Association, the average cost of a traditional funeral without cemetery expenses and other cash advance items (such as flowers, newspapers, etc.) is $7,323. This figure includes an average casket cost of $2,255 and an outer burial container averaging $1,128. This is, without a doubt, a lot of money. The Federal Trade Commission claims that after housing and vehicles, funerals are the largest expense that people incur.

But, why do funerals cost so much?

Funeral costs can be divided into three basic categories:

1. The basic service fee: Funeral providers are allowed to charge this, and cannot be declined by consumers. This fee covers services common to all funerals including the use of the funeral home facilities, the services of the funeral director and funeral home attendants, burial arrangement coordination (with a cemetery or other), securing permits, etc.
2. Optional service charges: Some optional services include transporting the body, embalming, times for viewing (or wakes), use of a hearse or limousine, burial container, cremation and interment.
3. Cash disbursements: This covers goods and services that the funeral home buys on your behalf, with your consent. It may include the purchase of flowers, clergy services, obituary notices, pallbearers and other service providers such as soloists or musicians.

Keep in mind that a funeral home’s overhead and operating expenses include facilities, upkeep, utilities, vehicles, and personnel. It is a business and not a non-profit organization. This business provides a service for people during a difficult time but it is still a business.

There are a number of ways to reduce this average listed above by choosing arrangements that do not include so many expenses. Please remember, that a family does NOT get a better funeral if they spend more money. In most cases, funeral homes give the same service no matter if a family chooses a very expensive or inexpensive casket.

Another alternative to offset the costs incurred with a funeral is to plan ahead. It is possible to pre-arrange and prepay for a funeral years in advance of the death occurring. Of course, the preplanning is done with the funeral home of your choice.

With all that said, the biggest factor in keeping funeral costs down is choice and the choice is yours.

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