How to Pay For Your Funeral

You can pay in advance for some or all funeral or memorial service expenses. It's a good idea to find out if there are state laws that protect your money and ensure it will be used to pay your funeral expenses when the time comes. Here are some questions to ask before paying any money in advance:

• What does this amount cover? Only products (casket, burial vault), or products and funeral services?
• What happens to the money after I pay it? Some states require funeral homes and cemeteries to invest a portion in a state-regulated account or buy a life insurance policy with death benefits assigned to the funeral home or cemetery.
• Can I cancel the contract and get my money back if I change my mind? Will I get all my money back?

Three alternatives to paying in advance are:

• A Payable-on-Death (POD) savings account. In many states, the money in this account can go quickly and directly to a funeral home, or to an heir who has promised to use the money to pay for funeral costs.
• A special life insurance policy purchased through a funeral home or other facility. The funeral home generally is the beneficiary of the policy.
• A prepaid trust account set up through a funeral home or other facility. This might include a burial trust established under Medicaid rules.

If you are a veteran

All veterans, some civilians who have provided military-related service, and some public health service personnel are entitled to free burial in a national cemetery, a grave marker (at any cemetery), and a flag. Spouses and dependent children also are entitled to a lot and marker, but only in a national cemetery. There will be no charges for opening or closing the grave, a vault or liner, or setting the marker in a national cemetery. For more information, contact your regional Veterans Affairs office by calling 800/827-1000, or go online to www.cem.va.gov.

Click here to download a PDF of My Funeral Choices worksheet