Do You Have to Pay for a Funeral Upfront? Options When the Money Isn't There Yet

Most funeral homes expect to be paid in full, or to receive a large deposit, before the funeral or cremation takes place. The Funeral Consumers Alliance (FCA) says families are typically expected to pay "in full up-front" by cash, check or credit card. That is the funeral home's own policy, so you can ask what it requires, and you have more ways to meet it than you might think.

Why do funeral homes ask for payment first?

A funeral can't be taken back once it's done, and the home often pays outside vendors such as the cemetery, crematory, florist or newspaper on your behalf. Those charges appear on your bill as "cash advance" items, and the FTC Funeral Rule says the home must list them separately.

Because of that, most homes don't extend credit. Some will make an exception for an installment plan or an insurance assignment, but you need to ask. Policies differ from one home to the next, so get the terms in writing before you sign.

Why doesn't life insurance solve the timing problem?

Life insurance can cover a funeral, but it rarely pays in time. A claim needs a claim form, a certified death certificate and verification of the beneficiary first. Texas requires insurers to pay within two months after receiving proof of death. If the person died within the first two years of the policy, the insurer may review the application, and that can take longer. Washington adds interest penalties for claims still unsettled 90 days after proof of death, which shows how slow a claim can be.

So don't schedule a service around a check that might arrive. Ask the insurer for a realistic timeline, and ask the funeral home whether it accepts an assignment, where the policy pays the home directly. Our guide to assignment of benefits for funerals explains how that works, and using life insurance to pay for a funeral covers the claim process.

What can you do if you can't pay upfront?

Work through these in roughly this order.

1. Set your budget before you call. The FCA advises deciding what you can afford without sacrificing your everyday living costs, before you talk to any funeral home.
2. Ask for the General Price List. The FTC Funeral Rule requires a funeral home to give you a printed price list to keep when you start talking about prices, and to give accurate prices over the phone. Our guide to the General Price List shows how to read one.
3. Buy only what you need. The Rule says a home can't make you buy one item in order to get another, apart from its basic services fee. You can skip embalming for a direct cremation or immediate burial.
4. Choose a lower-cost option. The FCA says direct cremation can cost as little as $1,000, and lists body donation, which is often free or low cost, and a home funeral. Read more in our guides to direct cremation and low-cost funeral options.
5. Ask about installments. The FCA says some homes will negotiate a payment plan. It also advises against telling the funeral director more about your finances than you need to.
6. Pull in family and community. Crowdfunding and church or club fundraising are listed by the FCA as workable options. See our guide to funeral crowdfunding tips.

Where can you get money for the bill quickly?

Options with the best chance of fast cash:

• The deceased's bank account. Some banks will release money for a funeral bill if you give them the itemized statement and a death certificate, but policies vary by bank and state, so call first. See how to access a bank account for funeral costs.
• A payable on death (POD) account. If the person named you as beneficiary, the bank pays you directly with a death certificate and ID, without probate. Our guide to payable on death accounts explains how.
• Your own savings or a credit card, with the plan to be reimbursed from the estate or insurance. Keep every receipt, because the executor can usually repay you from the estate.
• Employer benefits. The FCA notes that some employers and unions offer survivor benefits, so ask the person's employer.

What government help is there?

It exists, but it's small, and most of it arrives after the funeral.

VA rates are adjusted each October 1, so check the VA burial allowance page for the current figures. Our guides to the Social Security death benefit, VA burial allowance and government funeral help go deeper, and what to do if no one can afford the funeral covers the hardest cases.

Are you personally responsible for the bill?

It depends on what you've signed. The FTC says debts generally belong to the estate, and "by law, family members usually don't have to pay the debts of a deceased relative from their own money." The exceptions include cosigning, and in some states being a spouse. A funeral contract is different, because when you sign it you agree to pay. Read it closely before signing, and see our guides on who pays for a funeral and funeral debt collection.

If a debt collector contacts you about a relative's debts, the FTC says collectors may discuss them only with certain people, such as a spouse, the executor or the personal representative, and you can stop calls by writing to the collector.

What to do next

1. Decide your budget, then call two or three funeral homes and ask for the General Price List and their payment terms.
2. Ask each home what deposit it requires, what payment types it takes and whether it accepts an insurance assignment.
3. Gather the death certificate copies you'll need for the insurer and bank. Our guide on how many death certificates to order helps you decide.
4. Keep every receipt and the signed contract in one folder for the executor.