Unlocking $20 Billion: How Planning Your Funeral Can Lighten the Load for Your Loved Ones

PHOENIX — The cost of dying in America is staggering, averaging $155,000 in the final three years of life. This figure combines expenses from Medicare, private insurance, and out-of-pocket payments.

The financial burdens extend beyond healthcare. Funeral costs can vary significantly based on preferences. Elisa Krcilek, president of Mountain View Funeral Home, notes that a traditional funeral can range from $10,000 to much higher, depending on services and choices. For instance, floral arrangements alone can exceed $1,200.

Krcilek stresses the importance of proactive funeral planning. Although it may feel uncomfortable, viewing it as a part of financial planning can ease the burden. “People need to feel informed, not pressured,” she said, highlighting the need for transparency during consultations.

The American funeral industry is thriving, generating approximately $20 billion annually. This growth is partly due to new competitors, such as Costco, which has introduced lower-cost caskets sourced from abroad, prompting local providers to offer more affordable options.

More than just funeral expenses, proper estate planning is crucial. Dave Riley, head of wealth management at Arcwood Financial, emphasizes the necessity of having a will and possibly a revocable living trust to ensure that your wealth is protected for your loved ones. Financial planning, however, can be costly, starting at around a thousand dollars.

Riley urges individuals to prepare for the inevitable. He stresses that having a plan in place will save stress and turmoil later. “When the time comes, being prepared means your loved ones won’t face an overwhelming burden,” he added, advocating for foresight in managing one’s affairs.