Life Insurance For Final Expenses

July 24--It's hard enough to lose a loved one. For many, the pain is multiplied by the struggle to pay for the funeral.

Funeral directors increasingly deal with families in dire financial situations. Some area funeral directors, along with representatives from state and national associations, offer tips for easing the burden of final expenses.

--Plan your own. It's the single best way to make sure a funeral fits a family's budget. Funeral directors say preplanning eliminates the emotion and leaves families with fond memories of a loved one with the foresight to take care of his or her own final expenses.

--Carry life insurance. Even a small policy can cover most funeral expenses, which start at around $2,500 for cremation and a service and rise to $8,000 and up for a traditional funeral, viewing and burial.

--Be informed, and ask plenty of questions. By law, all funeral costs should be disclosed up front. And funeral homes have more options than ever for holding down costs while still creating a meaningful and personal experience that can bring healing and closure. But not if cash-strapped families are left paying the bill long after a departed loved one is gone.

--Don't get swept up in the emotions of the moment. The cost of a funeral is not a measure of a family's love for its fallen member. Family members shouldn't make any funeral arrangements until they've calmed down enough to make dollars-and-cents choices based on what their budget can afford. Sometimes it helps to bring along a trusted friend or relative who can ask the hard questions, negotiate prices and services, and keep an eye on costs.

--Be upfront about your financial situation. Don't be surprised if the funeral director asks for an assignment of life insurance benefits to cover costs, a signed promissory note for any balances, or payment in advance to cover some services, including grave openings, flowers and obituary notices.

--Talk about any unpaid funeral balances you might owe. After the services, continue communicating with the funeral director, especially if you're having trouble paying the bill. If funeral directors don't hear from you regularly about what you owe, they can only assume you don't plan to pay. This is when delinquent accounts are often turned over for collection by a third-party agency, helping to make debt collection one of the fast-growing sectors of the death care industry.

On the Web

--The Pennsylvania Funeral Directors Association offers tips and advice for consumers. www.pfda.org

--The National Funeral Directors Association offers more advice and resources on paying for services and dealing with grief. www.nfda.org.

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