Variations in Funeral-Related Costs of Older Adults and the Role of Preneed Funeral Contracts and Type of Disposition

Abstract

Based on this 1995 study of 163 families in the Kansas City area who experienced the death of a loved one age 50+ in the previous months, we found that combined funeral and cemetery-related costs ranged from $195 to over $14,000. We also report ranges in costs for caskets, outer burial containers, cemetery expenses, and funeral home costs. Total final costs were regressed on two independent variables, 1) presence of a preneed funeral home contract and, 2) type of body disposition (burial versus cremation). This model explained over 40 percent of the variation in total final costs. Final costs for decedents who were cremated were $4,426 less than their buried counterparts, and those with a preneed contract spent about $1,600 less. Implications for families and for helping professionals who may have interactions with families around the time of death are provided. Readers are cautioned that the purchase of a preneed funeral contract is not without financial risk; the financial risk varies from state to state. Other options of setting funds aside to cover final arrangements are discussed.