How to Pay for a Funeral

Monday, June 20, 2022

Did you know that in the United States, there are over 364,000 funerals per year? 

Some of these can be unexpected deaths, with people not being properly prepared to pay for a funeral of a loved one. If you find yourself in that situation, you may wonder what the best way to pay for a funeral is. 

Well, this is your guide on how to pay for a funeral. 

Prepaid Funeral Home  

One option you have to pay for a funeral is paying for a funeral home in advance. It can be a good option knowing you have a place and a cemetery secured for whenever the time comes that you will need it. 

Most importantly, it will likely avoid burdening your loved ones. The main drawback of this option is if your situation drastically changes. 

Let's say you do this around the age of 70 and move to another state by the time you are 85. If you die in another state, you may be out the money for your loved ones that were going to be used to pay for your funeral. 

This option is mainly recommended if you are nearly sure that you will be staying in the same area for the rest of your days. 

Personal Loan 

Another option for paying for a funeral is using a personal loan. However, this may only be a good idea if you have decent credit. 

This is because the interest rate for a personal loan can be up to 36% if you have a poor credit score. 

So, if you are a loved one with an unexpected funeral cost that is already in a bad financial situation, that can potentially put you in debt. The suggestion is only to go this route if you know you can pay the money back right away. 

Payable-On-Death Account 

This type of bank account allows you to set up an account with some of your money that will go to a beneficiary after you pass away. They would have to go to that bank account with your death certificate, and then that beneficiary would receive the money. 

The good thing about this option is that it eliminates any financial burden for your loved ones because you are already putting money aside for them to use. 

However, the counter to this is that most of these accounts do not have the best interest rates. If you put this money here several years in advance, it may not be worth as much by the time your funeral comes along.

Learn How to Pay for a Funeral

These are just three of the options you have for paying for a funeral. No matter what you choose, most of these options allow you to be prepared, and the others can at least give your loved ones flexibility. 

For more information, please get a consultation here today. 

Since 1905, families in the Greater Pottstown area have turned to the independent, family-owned Schumacher and Benner Funeral Home & Crematory to meet their funeral needs with professionalism and sensitivity. 

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