Prepaid Cremation Services- How These Plans Work
Written by Amy Gardner: Grief & Memorial Expert
Reviewed by Adam Binstock On August 22, 2020
How It Works
Pre-planning your end-of-life service is simple and cost-effective.
Begin by contacting a local funeral home or crematorium and discuss what they can offer.
Don’t forget to compare prices for the services that you want.
Ask the funeral home to “unbundle” some of their package deals so you can see exactly what you’re getting for the price.
You can set up a pre-paid funeral directly through a funeral home or purchase a prepaid insurance policy.
The cost of a prepaid funeral can range from $10,000 to $25,000.
You can pay the entire amount up front or set up a payment plan over a period of years.
You also need to plan on some additional administrative and maintenance fees.
Funeral Assistance
There’s no doubt that a funeral is a big expensive and can be a huge financial burden to a family. Fortunately, more people are using crowdfunding to help pay for funerals.
Crowdfunding allows you to set up a campaign for your loved one’s funeral expenses. Once published and shared via social media, family, friends, and even strangers can make small donations towards your funeral budget goal.
The Benefits
It may seem morbid to some. But the truth is, purchasing a pre-paid funeral just makes sense.
After all, death is one of the few things we can be certain of- and it’s wise to plan for it.
Here are just a few reasons why you should consider a pre-paid plan.
It gives you control
You get to make all the decisions about your funeral arrangements, down to the tiniest detail.
The venue, the music, the flowers, and everything else will be your choice.
This will be a relief to your family, as they won’t be left guessing or possibly arguing about what you would want.
It protects you from inflation
The cost of living keeps going up…and ironically, so does the cost of dying.
There’s no telling how expensive funeral merchandise may be in the future.
But a prepaid plan allows you to lock in today’s prices, saving you and your family from rising costs.
It shields your assets from Medicaid.
Funeral plans are considered to be excludable assets.
So that means purchasing a prepaid plan can make it easier for you to qualify for Medicaid benefits.
Cremation Plans & Packages
There are several different options from which to choose if you want to prepay for cremation services.
You can purchase a no-frills plan (This is Direct Cremation) which gives you just the basics: paperwork, cremation services, transportation and a cardboard container to house the cremains.
This package will run you about $900-$1800
You can knock a little off the price by providing your own container.
At a higher tier, you can purchase a memorial cremation service plan. This includes all the basic services with the addition of an urn and a memorial service in a church or other place of your choosing. Generally, this package costs around $2000+.
Finally, a traditional funeral cremation package can be purchased for upwards of $3000. This includes all the basic services in addition to preparing the body for a viewing and the use of a hearse and a casket.
Choosing A Service
If you do choose cremation for yourself or a loved one, there are still many decisions to be made.
All of these decisions, large and small, will have an impact on end-of-life costs.
Here is a thorough breakdown of your options.
A Traditional Funeral Service
Even if you choose cremation, you do not have to forego a traditional funeral service.
You can arrange to have a funeral before cremation, in a funeral home or a place of worship.
A traditional funeral before cremation allows a viewing, readings and/or a eulogy.
Of course, there are different costs associated with each of these choices.
Viewings
If you’re planning a funeral service before cremation, you will want to either purchase or rent a casket to use during the service.
You can buy a casket that can also hold the remains during the cremation process. Or you can simply rent one and use some other kind of container during cremation.
If you want a viewing, there will be costs associated with embalming.
Direct cremation
This is the least expensive cremation option, cutting out the cost of a casket, embalming and a funeral service.
The remains can be cremated within a few days after death. The ashes are then returned directly to the family.
After, you might choose to buy a cremation urn or even a piece of jewelry created for that purpose.
Memorial service after cremation
At a memorial service, the remains are not present.
Loved ones can remember the deceased with stories, readings, songs and/or photograph displays.
The service can take place in a church, a private home, a funeral parlor, at the gravesite or even outdoors at a beach or public park.
This option does allow you to bypass many end-of-life costs while still giving your loved one a meaningful send-off.
Cremation Costs
Here is a brief breakdown of some of the most significant costs. If you’re looking for a complete breakdown, here is our recently updated cremation costs guide.
If you’re on a tight budget and interested in keeping funeral costs down, have a look at our cheap funeral guide.
Keep in mind that these may vary from one region to the other.
- Crematory services: $800-$3000
- Cremation urn or box: $50-$1000
- Flowers (if you choose to have a funeral): $200-$1000
- Embalming (for a viewing): $100-$800
- Cremation casket: $500-$600
- Rental casket: $400-$600
Common Questions
If you are considering cremation as part of a prepaid funeral plan, you are probably curious about it.
Here are the answers to a few common questions.
Is embalming required for cremation?
The answer is no. Embalming is by no means necessary for cremation.
Unless you are planning to have a viewing in which loved ones will see the body before cremation, you can cut out this step entirely.
This can save a sizeable amount from your overall cost.
Is a casket required?
Again, the answer is no.
The only requirement is the use of an “alternative container.” These are generally boxes made of sturdy cardboard or plywood.
If you choose a traditional funeral service before cremation, you may want to rent a casket from the funeral home.
But eliminating the cost of a casket is a huge money-saver.
Should I Choose Burial or Cremation?
Ultimately, there are many factors that go into the deciding between burial or cremation. Here are some of the pros and cons of each.
Burial Pros
- Could be considered more natural
- Offers more closure
- May be required by your religion
- Gives the comfort of a place to visit
Burial Cons
- Expensive
- No place to visit for family members who move away or live far away
Cremation Pros
- Less costly
- Relieves overcrowding in cemeteries
- Kinder to the environment
- Quick
- Provides a portable remembrance that loved ones can keep close to them
Cremation Cons
- Permanent (unlike burial in which the body can be exhumed if necessary)
- May violate some religious beliefs
What Does the Bible Say About Cremation?
There are no specific chapters or verses in the Bible that address cremation. Historically, the Christian church was opposed to it.
But the real reason that ancient Christians chose burial over cremation was in reaction to Greek and Roman society at the time. These cultures practiced cremation, and Christians believed this was a pagan ritual.
There is no Biblical evidence that cremation interferes with resurrection or will keep you from going to Heaven.
The fact is that the body gets destroyed over time anyway.
Ultimately, the choice is a personal one. But it’s always a good idea to consult with a pastor, priest or minister if you have any doubts.
Other Considerations
After cremation, you may wonder about the most meaningful way to preserve the ashes.
Nowadays, there are many options to choose from and there’s no one right answer.
It’s a good idea to consider your beliefs, your budget, and what would be most comforting to your loved ones.
If you’re for inspiration, check out our cremation ideas article.
Burying the remains
For the most traditional route, you may consider burial of the remains in a cemetery.
Be sure to check with the cemetery about any regulations they may have.
Burial may require additional expenses, such as the purchase of a vault, burial urn, and a cemetery plot.
One of the benefits of this choice: it gives your loved ones a peaceful spot to visit and to remember you.
Scattering at sea
This is an excellent choice for someone who spent a lot of time enjoying the ocean waves.
The sea gives a wonderful sense of life’s timelessness which can be very comforting.
A scattering ceremony is an intimate occasion for the deceased person’s nearest and dearest.
Be sure to check ahead of time about your state’s regulations for scattering at sea.
Keeping the remains at home
This choice allows family members to feel that their departed loved one is still close by.
A great variety of attractive cremation urns and boxes can be purchased online.
They range from traditional ornate vases, to simple boxes, to whimsical creations that reflect a loved one’s unique character.
Remains can even be placed inside a necklace and worn close to the heart.
Keeping ashes in a niche
Most cemeteries now have columbariums. These are similar to mausoleums, except that they are made to house remains in cremation urns.
The urn is placed inside a niche, usually with a bronze plaque on it bearing the name of the deceased.
The price of a columbarium niche can vary greatly depending on your region and the location of the niche.
That’s a good point that embalming isn’t necessary unless you’re holding a viewing before the cremation. My uncle is currently in hospice, very close to his time, and his kids are trying to decide what to do about cremation and a funeral. They’ll probably have to get in touch with a funeral home and start pricing out different options.
I appreciate you helping me learn more about planning for a cremation service. I like how you said that you can still have a very traditional funeral service even though you are cremated. My mom will be interested to know this since she and my dad are thinking about being cremated when they pass away.
When my dad passes, he has told us that he wants to be cremated. I’ll for sure look into this as it would be a good way to have a proper funeral. He mainly wants to do it as it is one of the cheapest options when it comes to funerals.
I had no idea that cremation was kinder to the environment, but it makes sense because you’re not digging up a giant hole in the ground. You also don’t need to clear a huge plot of land for multiple graves. I think that when I die, I want to be cremated.
My grandfather thinks that he would need to prepare for his funeral in the future, but he hasn’t decided what he should get that will honor our family’s tradition while being affordable at the same time. I think I’ll try to ask a funeral home if preplanning a cremation service would be best for his wants. It’s true that many decisions will have to be made for a funeral, so I’ll be sure to help him out with this.
It was really helpful when you said to find local funeral homes. It has always been a wish of mine to be cremated when I pass away, and recently I was thinking about pre-planning it so my family won’t have to worry about it. I’ll make sure to keep these tips in mind as I prepare to pre-plan my cremation service.
My grandmother wants to be cremated because she is from England and would like some of her ashes in the English channel. Thanks for explaining that embalming isn’t necessary for cremation. That is good to know as we start trying to come up with a plan to carry out her wishes.
Thanks for pointing out that embalming is not required for cremation services. As unfortunate as it sounds, my grandfather wouldn’t last long in his bedridden state according to his doctor so we are now planning what could be done if he actually passes on any time soon. Perhaps looking for crematorium funeral directors would be wise, considering that having a traditional funeral is difficult to do safely during this pandemic.
What if I pre-pay a cremation plan but move out of state before I die. Will the plan go with me?
I would like to see if it’s transferrable. I bought cremation services at a local funeral home, it is to go into a trust until it is needed. I need to know if it is transferable, is this policy transferable should my spouse choose to buy it?
My father in law purchased a pre need cremation with burial at sea. He purchased from Affordable Cremations in North Fort Myers Florida. He has not passed, we are just preparing and are having trouble finding information about setting things up when needed.
Grandmother made & paid for all her own arrangements back in the 90’s (when she was very much still sharp & active)…. but she just passed away yesterday after suffering years of debilitating dementia..Knowing she had services taken care of, we didn’t give much thought past having records on hand. Now, I have discovered that the funeral home she paid & made arrangements through has closed sometime in the last few years.
No knowledge of any notifications or contact being attempted to inform next of kin or power of attorney (myself & brother.)
Now what?
We live in A fifth wheel will be traveling can this cremation be done anywhere with this plan
Either I missed or you skipped the part about prepaying for cremation and then the company goes broke.
I plan on leaving my body for research. Family would be responsible to pay to get the body to the School. How can this be arranged? If this would pay to move the body I would be interested in learning more. Thank you.
My mother pre-paid several thousand dollars for cremation and the funeral director commented, oh there is plenty of money in there for what’s needed. After reading the paperwork, the person pays the money and it goes into a fund with interest payable to the funeral home until the time of death. It would have been better had my mother put that money into a fund payable to US since we did not receive a refund for the overpayment of the cremation that could have paid for the funeral lunch or other expenses. Pre-planning a funeral with a casket and other details is one thing, but cremation? Invest the money in a fund payable to your own family. Lesson learned!
Pre-planning is so important! You don’t want to me like me, trying to find a cremation service at 3am because your loved one just died at the hospital. The illness hit quickly, and we had no funeral planning because we were young. Decisions had to be made quickly (body had to be removed within 3-4 hours), and I’m sure I overpaid for the direct cremation ($4,000) because I just needed someplace local quickly. And I had to literally go and pay the funeral home the next day. Fortunately I had a credit card, because let me tell you all the deceased’s funds will be frozen and you won’t have access to use them to pay (unless you’re married or trustee), and life insurance does not pay until 6-8 weeks later.
After this experience, I will plan ahead so my family doesn’t have to worry what to do when I go, or how to pay for it.
This information and comments are invaluable. I too am looking for cremation with no services. The family is not in need to have my ashes. I am looking for information regarding this. Basically it is…prepaid in full cremation where my ashes can be handled by the cremation business., no services wanted. Cremation business can dispose of my ashes.
#2. Do you have information on how to prepay for donating my body to science. What is the process, who to contact?
Do both these avenues LOCK IN THE PRICE, so that family has no bills incurred. I thank you for your awaited reply.