More than half of Americans over the age of 45 underestimate the cost of a funeral, often leaving to chance the funding of funeral services when they become at-need, according to a survey.
The survey, conducted by Choice Mutual, a company specializing in funeral insurance, found that 53 percent of those polled said that a typical funeral is under $10,000. Fewer than two out of five respondents said the cost was over $10,000. While prices vary in different areas within the U.S., the most recent New Jersey State Funeral Directors Association Biennial Survey found that a typical funeral with burial (including casket, vault, grave purchase and opening can cost an average of more than $21,000.
The striking difference between what people believe a funeral costs and what services actually cost can lead to sticker shock when families are faced with at-need choices.
“That gap between perception and reality often leaves families unprepared,” Anthony Martin, the owner and CEO of Choice Mutual, said in a release about the survey.
The study also found that 30 percent of adults over 45 said they had not thought about how to cover the costs of their own funerals, with men more likely than women to have neglected to take steps to cover funeral expenses. The survey showed that 59 percent of women had either taken steps or considered steps to cover funeral costs versus 56 percent of men.
Families with children were more likely to consider funeral arrangements and costs than families without children.
“Those with children may feel a stronger obligation to shield their family from unexpected costs, while adults without children face the same financial risks without that added social prompt to act,” the study stated.
There is also a gap between how different generations approach the responsibility of covering funeral costs. Among those 45 and over, 79 percent say they are personally responsible for their own funeral costs. Among adults between the ages of 18 and 44, however, only 59 percent say they are personally responsible, with 20 percent saying it is their family’s obligation and 21 percent saying they are not sure.
While the survey was conducted by a company with a vested interest in financing funeral services through an insurance policy, the results point to a significant educational gap about the need to consider final arrangements and the financing needed to conduct a funeral. The New Jersey State Funeral Directors Association has consistently highlighted the benefits of preplanning and prefunding funerals.
“Communicating your wishes in advance relieves your family from having to make difficult decisions at an emotional time,” the NJSFDA says on its consumer page, Preplanning Your Funeral. “Preplanning also enables you to make financial arrangements to cover your funeral costs, thus removing a possible financial burden from your family.”
Online copies of several brochures on preplanning options can be found here.