In a 2025 survey about wills and estate planning, over 30% of Americans over 55 said that they created a will because of “retirement or an age-related milestone.”1 Retirement is a natural time to reflect on your legacy and make sure your affairs are in order, especially your end-of-life expenses.
For many families, one of the biggest concerns is funeral costs. If you’ve ever wondered, “How much do funerals cost these days?” here’s the answer: According to the National Funeral Directors Association, the national median cost of a funeral with a viewing and burial in 2023 was $8,300.2 That’s no small amount, and it excludes additional expenses like a cemetery plot, grave marker, or obituary notices.
If you’re thinking ahead and want to spare your loved ones any financial stress, you’re on the right track. With some careful planning, you can ensure your final wishes are honored without placing a burden on your family. Here are four ways to prepare for end-of-life expenses.
Budgeting and personal savings
One straightforward way to prepare for end-of-life expenses is through personal savings. Setting aside funds in a separate account specifically for funeral and related costs creates a convenient and accessible cash reserve to access when the time comes. Research different options to find out how much your preferred arrangements might cost. Once you have a general idea, you can begin saving toward that goal.
Consider labeling the account something like “Final Expenses Fund” so your loved ones know exactly what it’s for. Don’t forget to name your beneficiary so the funds are easily accessible to the person managing your funeral. You can consider including the account in your estate planning documents.
Final expense insurance
Final expense insurance, or burial insurance, is a small permanent life insurance policy designed to cover funeral and other end-of-life costs. It’s usually available in smaller benefit amounts but is more affordable than many traditional life insurance policies. It’s also easier to qualify for, even if you have health issues. Many policies don’t require a full medical exam, and coverage can often begin quickly after approval. Premiums are typically fixed, and the death benefit is paid out directly to your beneficiary. Your beneficiary can use the payout to cover your funeral, medical bills, or other related costs.
Preneed plan
A preneed funeral plan (or preneed insurance) is an arrangement made directly with a funeral home. You’ll choose specifics (like the casket, flowers, and type of service) and pay for them in advance, either in full or through a payment plan.
An important benefit of preneed plans is that they let you lock in today’s prices for services that may become more expensive over time. Some people choose preneed plans because they give you total control over your funeral services and takes the burden of planning off your family.
However, there are potential downsides too. You’ll lose out if service prices decrease or if the funeral home closes down. Before choosing a plan, ask about what happens if you move to another state, and whether your money is held in a trust or insurance policy. Preneed plans may not be transferable or refundable, so choosing a reputable provider is important.
Funeral trust
A funeral trust is a legal arrangement in which you set money aside specifically to cover your future funeral and burial costs. The trust is usually managed by a third party, typically a funeral home or bank, and can only be used for the designated purpose. You can change or cancel a revocable trust at any time, while an irrevocable trust cannot be altered once it’s set up. Funeral trusts require an executor to help manage the funds. You can name anyone you want as your executor, including friends or distant relatives.
Funeral trusts are a reliable option and may help ensure the money is used exactly as intended. However, as with other financial tools, it helps to consult with an estate planner or attorney to decide what type of trust is best for your situation.
How to find the right option
There are several factors you should consider when determining which method for preparing for end-of-life expenses is right for you:
- Personal savings are unstructured but straightforward. They may suit people who want a simple solution.
- Final expense insurance lets you enjoy competitive fixed premiums. This type of policy can be useful for people who want to leverage their policy’s cash value. Remember that you can have the same beneficiary for different policies. For instance, your final expense insurance beneficiary can be the same as your main life insurance beneficiary if you have more than one policy. You can also name the funeral home as your final expense beneficiary, so they receive the payment directly.
- Preneed plans give you total control over your funeral arrangements but can be risky. They’re suitable for individuals who have found a reputable and trusted funeral home to work with.
- Trusts are usually safe and reliable. They may require input from your lawyer or financial advisor. Trusts may be right for people who want to ensure their funds aren’t misused.
Sources:
1 Caring – 2025 Wills and Estate Planning Study. Updated: March 31, 2025. https://www.caring.com/resources/wills-survey/. Accessed June 17, 2025.
2 National Funeral Directors Association – Statistics – Updated September 24, 2024. https://nfda.org/news/statistics. Accessed June 17, 2025.
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