2022 How To Pay For A Funeral Without Life Insurance

How To Pay For A Funeral Without Life Insurance

Losing someone you love is a painful experience especially if you don’t know how to pay for a funeral without life insurance. Dealing with the weight of financial burden makes the experience even more difficult.

Dying without life insurance is a serious matter. Think about what will your family do when faced with that situation. They are not only crying about losing a loved one but thinking where in heaven’s name will they come up with the money for the funeral.

Funeral services are expensive. The National Funeral Directors Association computed the average cost of a funeral today with viewing and burial is $8,755. While funeral with viewing and cremation is expected to be $6,260. If you have no cash to pay for a funeral you are putting your family into crisis.

If you become responsible for making funeral arrangements for your loved one without life insurance or a burial insurance policy, and you have little means to pay for a funeral, you need to seek ways to come up with the money to pay the funeral cost. There are significant ways you can pay for the funeral without life insurance. We will explore your options in this article.

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HOW TO PAY FOR FUNERAL WITHOUT LIFE INSURANCE

What will you do if there is no money for a funeral? Who pays for a funeral if the deceased has no money? If you lack the resources for a funeral, here are several ways that a funeral can be paid for even when the family is short of necessary funds:

  1. Personal loan

If you don’t have any emergency funeral funds, personal loans can be used for the cost of funeral and burial. You will need to apply for a personal loan if you have good credit and feel that you can comfortably pay off the loan in the next three to seven years.

You can get guaranteed funeral loans from banks, credit unions, and specialized lenders. Interest rates range from 16% to 35% on funeral loans.

A personal loan for a funeral can be unsecured, hard to get, and expensive. You will not only have to pay for the funeral but also pay interest on the loan, and it may damage your credit score to bury your loved one.


2. Credit Card Payment

Do funeral homes take credit cards? Yes. You can pay for a funeral with a credit card. It is another funeral financing loan option to help you pay the funeral costs. The best way for you to do this is to use a zero percent introductory rate credit card. These cards allow the user to pay off the balance without paying any interest for a set period of time.

This introductory period can last anywhere from six months to 21 months or more. After the period ends, you’ll begin paying interest – you need to be aware that the rates could be very high (up to 25% interest or more). So, you have to pay the card in full before the introductory period is over so you won’t need to pay any interest at all.


3. Ask For Contributions

Instead of shouldering the cost of a funeral all by yourself, try asking friends and family to contribute. Determine first how much the funeral and burial will cost. Ask family members to divide the amount between themselves. If you were able to keep the costs down, you could split this amount to make it more realistic to meet the funeral expense.

Gather your family to plan the funeral and compute how much each member should share for the funeral expenses.

Splitting the bill among the family may help make the cost more bearable.


4. Ask The Funeral Director For A Payment Plan

This is similar to a loan, but your relatives will have to pay the funeral home instead of a lending company. With these monthly payment funeral plans, you may need to make a monthly payment for a long time, but this does not affect your credit score.

You can ask the Funeral Home to finance all or part of the total funeral cost.  You need to carefully read the terms of the funeral financing contract to be certain. The loan amount of $1,000 to $10,000 has 15-25% interest rates and terms of up to 36 months.


5. Contact Social Security Administration

If you have collected Social Security before your death, the Social Security Administration may offer some assistance to your family.

There’s a $255 lump sum Social Security death benefit to those who will qualify. If your loved one is receiving Social Security benefits his spouse or children can get the death benefit to pay for the funeral.

Contact the Social Security Administration office as soon as possible. You need to provide the deceased’s Social Security number to the funeral director to report the death.


6. Contact a Non-profit Organization

There are non-profit organizations that offer assistance to survivors. These organizations provide financial assistance to help pay up the funeral cost of someone who doesn’t have the money or if that person’s family or friends can’t pay for the funeral.


7. Start a Kickstarter Fundraising Campaign

You can crowdfund the funeral on GoFundMe.com  or Kickstarter.com  if you know a lot of people. By requesting family and friends to contribute a small amount of money rather than giving flowers, your immediate family may be able to fund your funeral.

Crowdfunding sites make fundraising easy by giving you a platform to tell everyone – family, friends, and strangers everywhere your story and how you’re struggling to pay the cost of your loved one’s funeral.

These donation platforms often take a percentage of the funds donated so you will not get all of the money that is donated.


8. Funds Within The Deceased’s Estate

Funds within the estate are subject to Probate. It would take too long before Estate funds may be released (often many years). Try to negotiate with the Funeral Home by providing proof of estate funds to cover the cost of the funeral.


9. Totten Trust or Payable-On-Death Account  

POD is a bank account that lets you save for your funeral. You can designate a beneficiary to access the funds when you pass away.

Your beneficiary needs to present proof of identity and a copy of the death certificate to the bank, and they can get the funds immediately. This money won’t go through probate, and it’s available right away to pay your funeral expenses.

The disadvantage of this method is that many people lack the discipline required over many years to accumulate enough for a funeral.


10. Veterans Benefits

If your loved one was in the military, he is entitled to free burial in a national cemetery. The gravesite, vault, marker, opening, and closing of the grave are free. A burial allowance will be given to your family by the Veterans Administration office to pay other funeral expenses. If your loved one is not buried in a national cemetery the VA will pay a sum to buy a burial plot elsewhere.


11. Employer or Union Benefits

Check the employee benefits of your deceased loved ones. Sometimes there is an employee or Union benefits package that gives assistance with funeral cost.


12. Victim Compensation Program or Accident Compensation 

If your loved one was a victim of a crime or involved in an accident, you can look for some assistance. If he died in a vehicular accident, there is a possibility that the auto insurance will cover part, if not all the funeral cost.

Check the no-fault coverage and accidental death clause of the insurance to see if they will pay for at least some of the funeral expenses.


13. Inquire About Federal-State Assistance

If you can’t get the money together to pay for the funeral costs, it’s possible to get some help from the government.

People with disabilities, on Medicaid or are indigent may get small amounts from the state. They can get Medicaid funeral assistance. Inquire if your state has a victim compensation program to help you pay the funeral expenses for driving under the influence or a murder victim.


14. Indigent Burial Assistance Programs

Indigent Burial Assistance Programs can be found in many counties across the US. These programs are funded and operated to help those neediest or destitute take care of their disposition. The state would arrange simple pauper burials in a designated area of a municipal cemetery. Today, they offer direct cremation as a low-cost solution to dispose of the dead.

If your family member who passed away was on some type of government assistance, there is a good chance that they will qualify for the indigent burial. The state will pay part or all the cost, and you may be eligible for cash assistance. Contact your nearest Human Services office to know the details and apply.


HOW TO KEEP THE FUNERAL COST DOWN

The most important thing for you to do if paying for a loved one’s funeral is an issue is to keep the funeral costs as low as possible. Come up with a budget and stick to it.

Many of the costs can drop with little planning. That can be hard to do while grieving but you should remember that you can still have a dignified funeral service without having to spend thousands of dollars.

Consider cremation as an option, and this can keep the costs down. Cremation is cheaper than an open funeral. The average cost of cremation is around $1,650-$3,000, which includes a memorial service. The average cremation cost without the memorial service is only $750-$2,000. Pricing depends on your geographic location.

If you choose cremation the service could be held outside the funeral home like the church, a park, or another no or low-cost venue, you don’t have to pay for a funeral venue.

It is also a good idea to be upfront with the funeral director about your finances. If you’re low on funds, the funeral director will guide you to inexpensive alternatives.

The funeral service doesn’t have to be expensive. Make sure to shop around and compare funeral costs. Enlist the help of a friend or a relative to help you negotiate the best price.


THE IMPORTANCE OF BURIAL INSURANCE

Have you ever thought about what would happen if you die with no life insurance and your family doesn’t have the means to bury you? Pitiful isn’t it? Having made no preparation for your demise will likely make it harder for your family.

Can you use life insurance to pay for a funeral? Life insurance for funeral expenses is a great option.

Burial insurance, funeral insurance, and final expense life insurance will make sure your death isn’t a financial burden on your loved ones.

The funeral cost run between $3,000 and $25,000 – is that something you want your family to pay for? If you die without life insurance, your family is going to have to pay for it.

How to pay for a funeral with life insurance? Life insurance is something you buy when you’re still alive but will benefit your family when you pass away. Life insurance will make sure your death and funeral don’t bury your family in debt. By taking out a life insurance policy, you are making provisions for the future, and your family would be grateful you took the time to do so.


BENEFITS OF BURIAL INSURANCE

Burial insurance or final expense insurance is a type of permanent insurance. These policies do not have a specific term. It does not expire as long as you pay your premiums on time.

These policies include cash value components that build up tax-deferred savings. You can withdraw these funds or borrow against the policy if you have the need.

Ease of issue. Easy to qualify and get insurance coverage. No medical exam is needed, you are only required to answer a few health questions.

Level premium. Your premium will never increase. It is locked into a rate at your current age, and the rate will never go up regardless of advancing age or medical conditions.

Fixed death benefit. Your death benefit is fixed and guaranteed to never decrease for any reason.

Tax-free. The death benefit amount is paid to your beneficiary tax-free.

Not cancelable. Your policy can never be canceled by the life insurance company as long as premium payments are made on time.

Cash value builds up. Burial insurance is a whole life policy that builds cash value over time.

You can get a much smaller amount of coverage. Burial insurance can range from $1,000 to $50,000


WHERE TO FIND THE BEST BURIAL INSURANCE

If you decided that you want peace of mind that a burial insurance policy can provide to ensure your family will not be left with the burden of unpaid funeral expenses, you could call us at (888) 862-9456. We can find and secure the right policy for you.

At Funeral Funds, we specialize in helping people find affordable burial insurance. We work with the A-rated insurance companies that can provide you with the best-priced burial insurance plans.

Fill out our free online QUOTE form to get a custom quote.

ADDITIONAL QUESTIONS & ANSWERS ON HOW TO PAY FOR FUNERAL WITHOUT LIFE INSURANCE

What happens if you don’t have burial insurance?

If you die without burial insurance, your family will have to pay the funeral, burial, and final expenses out of pocket. This can cause significant financial and emotional stress if they don’t have the necessary funds to pay for your funeral.


How can I pay for a funeral with no money?

If you become responsible for making funeral arrangements for your loved one without money or life insurance, and you have little means to pay for a funeral, here are some ways you can pay for the funeral without money. Read the whole article here. https://funeralfunds.com/how-to-pay-for-a-funeral-without-life-insurance


What happens if someone dies with no money for funeral?

If someone dies with no money for a funeral and no relatives to take responsibility for it, your local authority will take care of it. It’s called the “public health funeral” where they will cremate and bury the remains and transport them to the crematorium or cemetery.


What happens if someone dies with no money or family?

If a person dies with no money or family to pay for the funeral, the hospital or the local authorities will arrange a public health funeral (pauper’s funeral) where they will cremate the remains and deliver the ashes to a crematorium or a cemetery.


What happens to a body if family can’t afford funeral?

The body gets turned over to the county or state, and the family will often not have control or access to the remains.


Why are funeral costs so high?

The funeral cost is so high because it involves a lot of services and vendors that charge high prices. These services include the transportation of the body, body preparation, organizing the location of the funeral, cemetery burial, or cremation.


Who should pay for funeral expenses?

The funeral expenses should be paid to the deceased life insurance policy or estate if they have a will. The executor is tasked to make sure all funeral and burial costs are covered by the estate. However, if the deceased does not have a will their family must shoulder the cost of the funeral.


Can you be forced to pay for a funeral?

Immediate family and relatives are rarely forced to pay for the funeral cost. Unless they made the necessary arrangement with the funeral home and signed the contract. Then the funeral director can force them to pay the funeral costs.


Who legally has to pay for a funeral?

If there is a will, the executor of the estate is legally mandated to pay for a funeral. If there’s no will the family of the deceased is responsible to pay for the funeral.

If the deceased set up a POD or payable on death account with the bank, the beneficiary must pay the funeral expenses.


Who pays for a funeral if there is no will?

If there’s a will, the executor of the estate must pay for the funeral. But, if there is no will, the immediate family and relatives should pay for the funeral expenses.


What if you can’t afford a funeral?

If you are a family member of the deceased and you can’t afford a funeral, check out with your local authorities. See if you can arrange a public health funeral for your loved one.


Is it wise to prepay funeral expenses?

Although prepaying for funeral expenses spare the survivors from paying the funeral expenses, locking in current prices, and shelter assets from Medicaid, it is often not wise to prepay for the funeral.

Prepaid funeral plans are tied to funeral homes. If the funeral home went out of business, your beneficiary cannot use your prepaid funeral plan to pay for your funeral expenses and they will end up paying for your funeral out of pocket.


Is it cheaper to bury or cremate?

Cremation is generally cheaper than burial.  


What is the average cost of a funeral in 2021?

The average funeral cost with cremation is $1,000 to $4,000. While the average funeral cost with burial is $7,000 to $12,000. This includes transporting the body to the funeral home, embalming, casket, and other basic services.


How Much Does Cremation Cost?

The average cremation can cost between $1,000 to $4,000 depending on location and added services.


How much is a funeral without insurance?

Funerals can cost anywhere between $7,000 to $15,000 with traditional burial. A cremation can cost between $1,000 and $4,000. This can go higher depending on the services and funeral merchandise you need.


Can you pay funeral expenses from deceased bank account?

Yes, if the account is set up as a POD or payable on a death account. The beneficiary on the account can take the money from the deceased bank account to pay for the funeral as it is intended.

If the bank account is a regular saving or checking account, the bank generally won’t release any money from the bank account. You can only get money from the account if the Probate is granted.


Can you transfer money from a deceased person’s account?

It is illegal to transfer money or withdraw from the deceased bank account unless you are the joint account holder and the bank is not yet informed of the death.


How do I get money from my deceased parent’s bank account?

If you are the beneficiary on your parents’ payable on death account, you can claim the money after presenting the death certificate and proof of identity to the bank.


Can funeral costs be paid from the estate?

Yes, the funeral costs can be paid from the estate of the deceased. But, it is necessary to wait for the probate to be granted, which typically takes several months.


What is the cheapest way to bury someone?

Direct burial is the cheapest way to bury someone because the body doesn’t have to be embalmed. A casket may also be unnecessary if you go for a green burial and use a burial shroud.


Are funeral expenses tax-deductible?

No, funeral expenses are not tax-deductible. IRS only allows medical expenses to be deducted. Funeral costs are considered personal expenses.


Does insurance cover funeral costs?

All types of insurance generally cover funeral costs. The life insurance company will pay a lump sum to the beneficiary if the policyholder dies. The death benefit payout can be used to pay for the funeral expenses.


Who pays for a funeral wake?

The estate of the deceased is obligated to pay for the funeral wake including the food at the funeral and other services.


How do bills get paid when someone dies?

When someone dies, all bills incurred relating to the funeral must be paid by their estate.


What are considered final expenses?

Final expenses consist of medical bills, credit card bills, auto loans, mortgage debt, funeral and burial expenses.


Is there a funeral benefit from Social Security?

Social Security pays a one-time lump sum amount of $255 as a death benefit. The surviving spouse or a child who is living with the deceased is entitled to receive this benefit.


How much will Social Security pay for funeral expenses?

Social Security pays a one-time lump sum amount of $255 for funeral expenses. This amount is given to the surviving spouse or child if they meet the necessary requirements.


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