What is the Cost of a Prepaid Cremation Plan?

Planning your own funeral may seem like an overwhelming and expensive task when you first begin, but a little bit of research goes a long way. Once you know your options for a prepaid funeral and set your own budget, arranging your affairs can be a wonderful gift to your family members and provide you with peace of mind.

You have many options for arrangements, from a traditional full-service funeral to a basic and simple cremation. We'll explain why a prepaid plan is a popular choice for those seeking peace of mind and a clear expression of their end-of-life wishes.

What is a Prepaid Cremation or Funeral Plan?

Funded, prepaid funeral plans are a set of arrangements made in advance, including both the handling of the body and any kind of gathering or memorial planned for family and friends. Prepaid funeral plans, sometimes called pre-need funeral plans, are designed to reduce the financial and emotional stress that comes with making arrangements and planning a funeral service after someone passes away.

What's the Benefit of a Prepaid Plan?

Now, the majority of Americans are choosing cremation for their final disposition. With prepaid plans, you can be certain that your wishes will be carried out without undue burden on others. Prepaid plans can reduce both the emotional and financial burden on others.

Many providers allow you to complete paperwork online and submit it electronically. You can often receive the cremated remains at home, delivered by the United States Postal Service (USPS). Even low-cost cremation providers may assist with legal documents and paperwork, including the death certificate.

How Much Will it Cost to Fund Your Funeral Plans?

The average cost of prepaid funeral plans vary. Two of the most important factors that will affect the final price of your prepaid funeral plan are the funeral home you choose and whether you opt for burial or cremation. Depending on the final disposition method you choose and the funeral provider you make arrangements with, you can pay anywhere between $950 to $15,000.

Why direct cremation has the lowest funeral cost

Cremation is generally much more affordable than burial, but prices still vary widely. Even more affordable than traditional cremation is direct cremation, which costs a fraction of the price of other prepaid options.

What is Direct Cremation?

Direct cremation, sometimes called simple cremation, is the most basic cremation option and often have the lowest funeral cost. The funeral company collects the body and the cremation takes place in the days immediately following the passing without a viewing or funeral service hosted beforehand.

After the cremation, the cremated remains or "ashes" are released to the family, or the funeral provider can perform a scattering for the family. The simplicity of the direct cremation process saves families thousands of dollars. Get a quote and learn more about Tulip’s prepaid direct cremation plans here.

Comparing Costs and Funeral Providers for Cremation Services

Most people are in the dark when it comes to price expectations because of the taboo nature of death and funeral planning. Getting multiple quotes to compare prices between providers is important to get the best value for your money. When getting quotes, be aware that this can be like comparing apples and oranges.

Weigh Which Funeral Expenses You Need

Before making accurate cost comparisons, decide on the services you need and make sure each provider includes those services in the price they quote you. For some, a package price is a good idea, but only if all that is included is helpful and necessary for the care of your loved one.

What Should be Included in the Cost of Cremation?

If you choose direct cremation, make sure that the price you are quoted is complete. Your final quote should include body collection, filing of any necessary paperwork, including a death certificate, a container for cremation, the cremation itself, and the release of the ashes. Some funeral providers charge separately for the cremation container or exclude the actual cost of cremation from the quoted price.

Compare the Total Cremation Cost

Don’t just compare headline costs, but check to make sure that the final price you pay includes all the cremation services you need. To compare costs accurately, make sure you are looking at what is included in the price. Even low-cost providers should help you arrange for a death certificate and handle other legal paperwork. The FTC's Funeral Rule gives you the right to a General Price List.

Ways to Save on Cremation Arrangements

Avoid Paying for Traditional Services if You Don't Need Them

A traditional funeral home can offer everything you need, but businesses often charge a premium as they have the added cost of the storefront, staff, and maintenance. Online low-cost cremation providers offer many of the same services, but at a fraction of the price for cremation services.

Arrange an Alternative Memorial Service

Services that are arranged through a funeral home or religious building can be expensive. A picnic with your family or a gathering at home can be even more personal and far cheaper than more traditional options.

There is no right or wrong way to hold a memorial service. The important thing is to gather to remember the loved one.

Consider Merchandise Outside of the Funeral Home

The average cost of a cremation urn from a funeral home may be higher than what you can find online. The Federal Trade Commission's Funeral Rule gives you the right to purchase your own urn, among other consumer-friendly guidelines. Shop around to get the best value.

Do Your Research

When buying a prepaid cremation plan, make sure to do your research beforehand so you can make an informed purchase. Arming yourself with information prepares you to choose the provider with the services that are best for you at the lowest possible price. Check with friends, neighbors, and relatives for referrals and check online reviews. Be aware of hidden fees and be sure to ask for the complete price before signing any contracts. Some services offer a package price. It can be helpful if those included services are what you need, but don't pay for things you may not want.

Other Options when Planning Ahead

When planning your own funeral, you have a variety of options to choose from. Before deciding how to move forward, consider the cost associated with each option.

How Does Preplanning Help with Funeral Expenses?

Pre-planning (or preplanning) is an umbrella term for any funeral planning that occurs in advance. Pre-planning can be as casual or formal as you’d like. Some people simply make a list informing their family members of their funeral preferences without funding the plans, while others pay ahead.

How Does Funeral Insurance Help with Preplanning?

Funeral insurance is not much different from life insurance, except the cover is for a much lower amount. Also called burial or final expense insurance, funeral insurance is designed to be a small policy ranging from $5,000 to $25,000 that is paid to the family member responsible for making final arrangements when the insured person passes. There is no oversight for how the money is spent, or legal obligation to use the money for funeral arrangements.

Using a 'Payable on Death' Account for Final Wishes

A Payable Upon Death or POD bank account allows a beneficiary to receive the money once the account owner passes away. Because it functions as a regular bank account, the owner of the account can do as they please with the funds during their lifetime. Once the account owner passes, the beneficiary can withdraw the funds in the account without the need for probate.

Why choose Tulip for prepaid direct cremation?

If you are looking for a simple, affordable funeral option, consider Tulip’s prepaid direct cremation plan. Tulip’s online process is designed to save you money and time. You can make arrangements online or over the phone in minutes, so you can spend your time with your family, not a funeral director. Our Family Care Team of experienced funeral professionals is available 24/7 to answer your call at (844) 942-4909. You can also make arrangements online.