Funerals Are More Expensive Than Last Year

The cost of nearly everything is rising in the U.S., but economic circumstances are grim enough that even funerals are more expensive.

Funeral costs surged 4.8 percent since last year, according to Consumer Price Index data released Tuesday, another indication the impact inflation is having on Americans.

“As inflation rises, along with all other expenses increasing throughout the supply chain, funeral costs are unfortunately rising accordingly,” Adam Katz, the best-selling personal finance author, money coach, and founder of Money for Dads, told Newsweek.

Since funerals and items like coffins are already expensive, this adds to the burden grieving families carry. The average coffin costs between $1,000 and $3,000, without factoring in the costs associated with a large memorial event.

Inflation remains at around 3.1 percent, falling from a high of around 9 percent in 2022. But the signs of inflation’s gradual decline are still not being felt in Americans’ everyday lives.

Businesses burdened with rising costs pass those onto customers, even for difficult purchases like those associated with a funeral.

“Inflation has significantly affected various aspects of American life over the past year. Despite indications of a gradual decline in high inflation rates according to government reports, numerous industries and businesses continue to wrestle with its negative impact,” job marketplace platform RedBalloon chief executive officer Andrew Crapuchettes told Newsweek.

The total cost of a funeral typically includes a basic services fee, along with the transfer of remains to a funeral home, embalming, the casket price, guestbooks, the hearse and all staff and facility charges.

In 2023, the National Funeral Directors Association estimated the median funeral price to be somewhere around $8,300, compared to $7,848 in 2021.

Funerals Put Heavy Strain on Families

However, the climbing price of end-of-life services is sure to hit grieving families especially hard, Hassan Sanders, a licensed life insurance broker and the founder of DiabeticInsuranceSolutions.com, said.

“The increasing cost of funerals is putting a heavy financial strain on bereaved families, who may have to go into debt or cut back on the type of services they can afford,” Sanders told Newsweek.

Low-income families will feel the price surge the most, causing some to forego burial and choose cheaper options like cremation instead. It could also cause many families to take on loans to cover the funeral cost for a loved one.

“We need policies that assist reduce economic inequality, expand access to inexpensive funeral services, and increase financial literacy so people can better prepare for such a major expense,” Sanders said.

Life Insurance May Help

What can you do to get around the skyrocketing costs? One option is life insurance, said Marc Bisson, the managing director at Catholic Cemeteries which handles funeral arrangements from cremation to burial.

“Life insurance is one financial resource that helps make it easier for people’s loved ones to carry on financially after they die,” Bisson told Newsweek.

“Your beneficiaries will initiate a claim once the death certificate has been issued, and they’ll receive the death benefit in cash to use how they see fit. This could mean funding your funeral costs, paying off your medical bills and much more.”