The NFDA released its 2013 GPL study and the average bill for a funeral is $7045. This number does not include an outer burial container, cemetery costs, and ancillary cash advances.
So if the deceased family member did not have a funded pre-need contract or valid life insurance to cover the costs (42% of all adult Americans have no life insurance), then in many cases the family is left with paying for the bill.
76% of Americans are living paycheck to paycheck (CNN Money) which means that there is not at least 6 months of personal expenses available in cash (savings), 25% of Americans are considered sub-prime consumers which means that their credit score is less than 640. Just from these statistics, one could easily surmise that about half the families we meet in funeral homes have some sort of financial stress.
So are Funeral Homes recovering $7045 on some life insurance, cash, and credit card limits? Sometime they are, but a majority of the time Funeral Homes accept whatever the family has or is willing to spend for the same or smaller funeral.
The costs of funerals are not going down and families that are financially struggling are going up. What does that mean for your financial future?