A payment method like a funeral loan is not just for those who may struggle to pay for funeral expenses; a number of families may just prefer to spread the cost over several months, or perhaps they simply need more time to gather their funds. With an option like this, you have the flexibility to get the funeral services you really want for your loved one.
How much does it cost for a basic funeral?
Like many other goods and services, the average funeral price has been steadily climbing over the last two decades. On average, basic funeral services cost families between $8,000 to $10,000. When planning a funeral your money will be going to a variety of funeral-related expenses. In most cases, there are three main components; the funeral home, the cemetery, and the headstone. It’s likely that most of your budget will be spent at the funeral home. Funeral home expenses typically include a casket, funeral basic service fees, funeral ceremony and viewing, embalming and body preparation, and miscellaneous items such as death certificates, obituary, hearse, and so on. You can easily spend $6,000 alone just at the funeral home. Once you have selected a funeral home you can move onto selecting a cemetery. Most cemeteries charge a grave space fee and an open/close fee (digging the grave). On average, families spend about $2,000 at the cemetery. You’ll most likely need to add a headstone to the grave which is an additional cost. Grave markers are usually much cheaper than headstones. Headstones can vary significantly in price depending on the size, materials, and details. Keep in mind, these average costs do not include food, beverages, or space rental for family to gather and celebrate the life of your loved one. If you choose to have a celebration of life, you should add this to your budget.
What happens if the family can’t afford a funeral?
As we covered, funerals can be expensive. You could be enjoying life one day and planning a funeral the next. Tragedy strikes fast. Funeral planning usually does not leave families much time to save up cash. If you are unable to afford a funeral you can cremate your loved one or obtain funeral financing. Cremating is usually much cheaper than burying remains. In some cases, you may be able to arrange a Public Health Funeral with the hospital or local council. Although it may feel strange using your loved ones money, you should review their financials to see if they set aside money for a funeral. If they did and you have access to the funds, you can use their money. However, most families prefer to use funeral financing. Funeral financing is relatively easy to secure and allows families to grieve the loss of their loved one properly and worry about money later.
Can you pay monthly for a funeral?
Funeral financing allows borrowers to make affordable monthly payments over an agreed upon term with interest. While you may be able to use a credit card and make monthly payments as well, it’s usually a better financial decision to use funeral financing. Funeral loans and financing usually have lower interest rates than credit cards. In most cases, funeral loans are personal loans that do not require collateral or a down payment. LendingUSA can provide quick and competitive funeral financing up to $12,000 for a wide range of credit scores. You can apply online and receive funeral financing pre-approval within seconds. LendingUSA offers loan products designed with you in mind. If you can repay your loan balance in full within six months of the disbursement date, you will not be charged any interest. You heard us right, that is 6 months at 0% interest combined with affordable monthly payments.
Can you get a loan for a funeral?
Yes, you can get a loan for a funeral and funeral-related expenses. Banks, credit unions, and online lenders can offer funeral financing. Online lenders usually offer competitive loan offers and allow individuals to apply and secure loans from the comfort of their own home. In most cases, online lenders can fund loans faster. For individuals planning funerals, a simple and fast loan process can reduce headaches and let you focus on what is most important. Good and bad credit borrowers can qualify for funeral loans. Most lenders prefer a credit score of 620 or higher, but may make acceptions. You can apply online at LendingUSA to find out if you qualify for funeral financing without affecting your credit score.
What are the different funeral financing options?
There are a few types of financing options for funeral loans. The type of funeral financing that is best for you usually depends on your finances and situation.
There are a few options that cover funeral expenses, such as:
- Preneed policies: A preneed policy is when your deceased loved one has planned for their funeral expenses ahead of time. With this payment option, families have very little to plan, as their loved one has already done the majority of the planning.
- Life insurance: If your loved one has a life insurance policy, this can cover some or all of the funeral expenses. While your funeral home can help you navigate insurance claims, this can be a challenging process.
- Pay-on-Death Account: Similar to a preneed policy or a funeral trust, a pay-on-death account is set up previously by the deceased family member. They then name a beneficiary to handle the finances, allowing the assets to be available without going into probate.
- Crowdfunding: For unexpected losses in particular, crowdfunding or raising money online can help families cover the necessary expenses for their loved one’s services. This is often a last resort for families.
Personal loans are one of the most flexible options that are well suited for many. Let’s take a look at different funeral financing options. . .
LendingUSA partners with a network of top-rated lenders and merchants to provide funeral financing for customers. You can apply online with LendingUSA to receive pre-approval and discover funeral homes in your area that accept financing. Alternatively, if you are already working with a funeral home, you should ask if they are a LendingUSA partner. If they are, you can apply directly with the funeral home. LendingUSA offers customers promotional financing offers, competitive rates, and a seamless no-hassle experience.
#2. Credit Card
Credit cards may be a convenient option but you should think twice before swiping. While funeral expenses may start as a few hundred dollars here and there, they usually end up totaling thousands of dollars. Most credit cards have high interest rates, which can make the actual funeral cost much higher than it needs to be. In addition, your credit card may not have a high enough balance to cover all the funeral expenses. Credit card holders should be careful using more than 30% of the available credit limit as it may cause a drop in credit score.
Cash is usually the cheapest way to pay for funeral expenses, but you may not have enough cash on hand. Even if you do have the cash available, you may want to save it for expenses to follow the funeral or other emergencies. If you can qualify for promotional financing and pay the loan balance within the promotional period, it’s basically the same as using cash.
Can you get a loan from a funeral home?
Some funeral homes may offer financing options. However you probably do not want to call around town asking if funeral homes offer financing during an already trying time. We recommend applying online at LendingUSA to get pre-approved for funeral financing. LendingUSA can connect borrowers to local funeral homes that can accept financing. This allows grieving survivors to spend more time grieving and healing. At LendingUSA, we can make funeral financing easy.
Questions to ask your funeral director
As you’re planning for funeral services, it can be overwhelming as you’re trying to work through all of the details. For some families, not asking the right questions can lead to unexpected costs when they receive the final bill. As a result, be sure to ask the following questions when it comes to funeral expenses and the fees you may incur:
- Do you have a copy of a written price list?
- Does your price list break down all of the services and merchandise?
- What do the cash advances include, and what is the cost?
- Do I have to purchase the casket, urn, or vault through your funeral home?
- Is embalming required before burial?
- What types of payment options do you offer?
- Do you have a monthly payment option?
Keep in mind that the more details you have up front, the better you can plan ahead. Plus, you’ll avoid any unexpected surprises when it comes time to pay the bill.
Pros and Cons of funeral loans
As you weigh your payment options for funeral services, it’s important to weigh the pros and cons of funeral loans as a payment option. While there are many factors to consider, here are a few pros and cons of funeral loans to think about:
Pros of a funeral loan
- Spread payments over time: One of the primary benefits of a funeral loan is that you have the opportunity to spread the cost of funeral services over time. For many people, it is far more challenging to pay a large sum of money up front rather than a fixed monthly payment. When you’re able to plan your budget, you can be more financially prepared in the long run.
- Get the funeral services you really want: When you’re constrained by budget limitations, it can be difficult to pay for the services you really want to honor your loved one. A funeral loan can remove some budget constraints and relieve some worry about how you can honor your loved one without a financial setback.
- Loans designed for funeral services: Depending on your loan service provider, those who offer funeral loans specifically, like LendingUSA, may offer specific terms designed for funeral expenses. This includes working with funeral homes directly, 24/7 application access, and promotional payment terms. At LendingUSA, funeral loans have a promotion* of no interest if you pay back the loan within six months.
Cons of a funeral loan
- Interest charges: With any loan, you may deal with interest charges, and depending on your circumstances, this may add too much to the total cost for the funeral expenses. Be sure that you understand the terms of your loan before signing.
- Credit check: When you apply for any loan, it will require a credit check, which can sometimes harm the overall health of your credit. Be sure that you understand your credit health and the steps involved in taking out a loan.
- Financial commitment: When you take out a loan, you are making a financial commitment for a period ranging from a few months up to potentially several years. Depending on the terms of your loan, you want to ensure that you have the resources to pay off your debt over time.
Who can take out a funeral loan?
As you are planning a funeral, there are a lot of rules and regulations about who is able to make decisions regarding the funeral services. When it comes to who can pay for the funeral services or take out a funeral loan, there are no restrictions. Any friend or family member can apply for a funeral loan to help pay for services. Oftentimes, multiple family members will split the cost of services by each taking out their own funeral loan.
How much should I borrow for a funeral loan?
The amount you should borrow for a funeral loan depends on your individual circumstances. To start, you should understand the amount you can realistically pay toward your loan on a monthly basis, and you should ensure that you do not take out a loan with a monthly payment that exceeds your budget. The monthly payment amount will depend on different factors, such as the length of the loan terms as well as the interest rate, so borrowers should use their discretion when they check their rate.
In addition to understanding loan terms and your monthly budget, be sure that you’ve discussed with your funeral director what can and should be paid up front. To cut down on the loan amount, you might consider paying what you can to start, to avoid borrowing a larger amount and accruing more interest.
What to look for in funeral loan options
When considering a funeral loan, there are multiple factors to weigh in your decision, and you should be sure that the loan option you choose works best for you. As a result, be sure to ask yourself the following questions as you evaluate your options:
Can you work directly with the funeral home?
When planning a funeral, the last thing you want to worry about is payment. For lending companies that are designed to work with funeral homes directly, families can focus on what’s most important during a difficult time, while the funeral home is paid directly.
Do you have 24/7 access?
Funeral service planning happens very quickly, and families often don’t have time to wait for the banks with set business hours. When you are planning services so quickly, it’s important that you understand your budget as soon as possible and have access to get everything you need online, from checking your rate to signing a contract.
Do the loan terms fit your needs?
Before you apply for a funeral loan, be sure that you are clear about your needs and financial goals. For some families, they may simply need a few extra months to pay the balance. In that case, promotional interest terms can save you money and give you the flexibility you need. At LendingUSA, all funeral loans have a promotion* of no interest on the principal balance if your loan is paid in-full within six months. This is designed to simply give families the flexibility they need without worrying about extra costs.
How to save on funeral expenses
For families going through the funeral planning process, adding up the expenses can be a shock. As you assess your financial situation, it’s important to understand how you can effectively lower the costs. Here’s a few strategies you can employ to be a smart shopper during a difficult time:
- Compare prices online: Researching pricing for any large purchase typically starts online. As you look at funeral homes in your area, you can utilize tools like Funeralocity.com to compare pricing and better understand what each funeral home has to offer. This includes understanding which funeral homes offer financing options.
- Get detailed pricing information upfront: As you go through the funeral planning process, it’s easy to get caught up in the fast-moving process. However, it’s important that you are transparent about your budget and that you discuss pricing upfront.
- Don’t be afraid to ask questions: With all of these expenses adding up, it’s important that you’re not afraid to ask questions and discuss each and every item with your funeral director. Be sure that you understand each line item and its purpose, as well as how necessary it is. The more you take the time to walk through each item, the less likely it is that you’ll be surprised by the total cost at the end.
- Cremation versus burial: One of the simplest ways to cut expenses for your funeral services is a basic decision. While a casket and burial can drive up the total cost of the funeral to over $10,000, a cremation can cost between $1,000 and $3,000.
Was this lending solution created for funeral services?
There are several lenders available who can approve an application and fund a loan for you. However, solutions like LendingUSA that were created for families during this time of need may be a better solution for you.
For example, solutions that were created for funeral financing will offer more compassion for your situation. Plus, employees may even have experience in the funeral industry. As a result, they not only know how to work with grieving families, but they understand the funeral industry, and they can help you navigate your way through the process better.
Additionally, lending solutions like LendingUSA work directly with funeral homes, ensuring that families do not need to worry about payment. This allows you and your family to focus on what really matters: honoring your loved one and spending time together.
Are there any promotions offered?
When you finance a large expense, sometimes promotions are offered with a lower interest rate or no interest for a specific period of time. This allows you time to gather finances and void unnecessary charges. And for a funeral, this is definitely the time to have that option.
Whether funds are tied up in the estate, you’re waiting on insurance, or you just need more time, you should have the option to simply get more time to pay. That’s why LendingUSA offers a six-month promotional period: If you pay off your loan within 6 months, any interest you’ve paid will be put toward your principal balance.
What you need to apply for a funeral loan
If you’re interested in financing your funeral services, you can check your rate on LendingUSA and get a pre-approval with only a soft pull to your credit. A hard pull is only done once you actually submit your full application. It’s important to understand all of your financing options at this time, which is why you’re able to check your monthly payment without any consequence.
Additionally, LendingUSA partners directly with funeral homes. If you have yet to find a funeral home for your loved one’s services, you can use our merchant search tool to find a funeral home in your area that offers LendingUSA as an option.
If you’ve discussed financing your funeral services with the funeral home already, you can select the funeral home as you fill out your application. Because LendingUSA is partnered directly with funeral homes, this means that beyond submitting your application and signing loan documents, payment to the funeral home will be handled for you.
How to check your rate
Checking your rate is very straightforward, and it’s important to check what kind of approval and monthly payment you can expect before you make any decisions. With LendingUSA, you can fill out an application any time online and get a pre-approval decision within just a few minutes. When you check your rate for a pre-approval decision on a funeral loan, it won’t affect your credit score. This way, you can get a full understanding of your budget before you start the planning process.
We hope that you are able to find some peace of mind knowing that you can honor and remember your loved one in the way they deserve using funeral financing. Over 100,000 borrowers trust LendingUSA and you should too. LendingUSA can help you get the best funeral financing while providing a seamless and user friendly experience. Simple, apply online at LendingUSA to get pre-approved for funeral financing without affecting your credit score.
Need funeral financing? Apply online today!