Cremation is gaining popularity due to rising funeral costs

Death is expensive. When a loved one passes away, you face emotional and financial hardship.

The minimum cost for transportation, storage, and legal processing of a body after death in most states is $1,000. This price does not include burial and funeral expenses.

More and more families are choosing cremation because of its affordability when it comes to overcoming the financial difficulties associated with death. In the last 15 years, the cremation rate in the U.S. has nearly doubled to 57%, according to industry data.

Here's why cremation is outpacing burial and what this trend will mean for consumers.

The main reason consumers choose cremation

Over the past 50 years, the growth in cremations has been driven by affordability. According to LendingClub, about 60% of Americans live from paycheck to paycheck, and household debt hit a record high in 2022. So when faced with an immediate expense like death, the lowest cost option is often chosen.

According to Jeff Kleczka, director and vice president of Prasser-Kleczka Funeral Home in Milwaukee, cremations have quadrupled in the past 25 years.

"More and more families, regardless of socioeconomic status, age or demographics, are choosing cremation," says Klecka, "This can result in significant cost savings when burial products are no longer included in the final funeral bill.

While most Americans tell Forbes Advisor they have at least one form of life insurance, only about 20% of people have burial insurance, according to the North American Cremation Association. This leaves many families scrambling to find funds to cover expenses after a person's death.

Both types of insurance can cover funeral expenses, but funeral insurance policies have fixed rates, lifetime coverage and can sometimes pay out faster than a regular life insurance policy.

For this reason, Sansera Johnson chose cremation whenever she had to experience the repeated loss of her loved ones. As a result, she eventually cremated her mother, father, and son.

"My decision was cremation because it made financial sense," says Johnson, an author and podcaster who lives in North Myrtle Beach, South Carolina. "I can't imagine myself spending that much money for one day, when the most important thing is the memories that will live on."

How much does a cremation cost?

When a person dies, their body must be transported and stored in a funeral home or crematory. This process, as well as the paperwork and the cremation itself, make up the postmortem costs.

The price increases if you add services and features such as embalming, casket, viewing, funeral, headstone, urn, facility rental and staff.

According to a 2021 study by the National Funeral Directors Association, the average cost of a cremation with funeral service and viewing is $6,970, while a funeral with viewing that also includes burial is $7,878.

Families choosing cremation have two options: direct cremation or cremation with services.

Direct cremation

Direct cremation means that the body is taken directly to the crematory and the ashes are returned to the family without a service or visitation. It is the cheapest and most common method of cremation in the United States.

The average cost of a direct cremation ranges from $1,000 to $3,000, depending on which funeral home or crematory you use. This cremation option does not include any additional services, but offers consumers the most flexibility. The family can receive the ashes and decide to hold their own memorial service, scatter the ashes, or otherwise honor their loved one on their own terms.

Cremation with services

Cremation with services includes cremation along with a memorial service similar to a traditional funeral. Instead of a casket, the family may receive an urn containing the deceased's ashes. The cost of this cremation option ranges from $1,500 to $4,000.

A viewing and service can cost up to $6,000, and body preparation, embalming, casket and staff are included in the additional costs.

Fees associated with state and county regulations can increase the final bill. For example, most states require a cremation permit, while other states regulate the types of disposal containers used, storage requirements, and waiting periods.

Funeral service providers may offer a bundled price that covers all costs, while others pass administrative costs, storage fees and crematorium fees onto the consumer individually.

Cremation is a modern attraction

Klecka, the funeral director, made sure the value of cremation went beyond accessibility.

"Cremation simply offers time flexibility, cost savings and dignity that are more in line with the values of ordinary Americans," he says.

Cremation meets the modern preferences and needs of all generations, from baby boomers to millennials. In addition to cost savings, here are a few other key reasons consumers choose cremation over burial.

Environmental impact

Cremation is considered more environmentally friendly than burial because it has a smaller carbon footprint - no plot of land is required - and requires fewer overall resources.

By choosing cremation, consumers are not contributing to environmental concerns about land scarcity and the impact of embalming on local ecosystems.

Religious relaxation

Historically, many religions have opposed cremation, making it a taboo choice at the end of life. Some have not changed their position, but others, such as Catholicism, have relaxed their restrictions in recent years.

Americans are becoming increasingly secular; less than half identify themselves as belonging to an organized religion. As younger generations move away from tradition, cremation gives them the opportunity to celebrate life in a more personal way.

Flexibility

Burials and funerals move quickly, and often the family does not have enough time to plan and grieve. With cremation, the family can postpone services, allow time for travel, and avoid the unnecessary pressure to immediately honor the memory of the deceased.

Cremation allows families to memorialize their loved ones in creative ways. It is not uncommon for portions of the ashes to be left with several family members. They may be placed in an urn or columbarium, buried in the ground, or scattered. Or loved ones may resort to more original options, such as having the ashes pressed into a piece of jewelry, vinyl record or stone.

Mobility

Modern families may live in different geographical areas. A grave in one place may remain forgotten or unvisited, while the urn with the ashes may be moved to another location when the family moves.

Covid-19

Fear of infection, the need to stay at home, and economic hardship during the Covid-19 pandemic led people to prefer cremation to traditional funerals and burial.

The surge in Covid-19-related deaths has caused funeral homes to shift their focus from in-person to virtual services and offerings. Cremations will reach a record peak of 1.9 million in 2020, according to a report from Marketdata.

The future of cremation

Experts predict that the cremation rate in the United States will reach nearly 80% by 2040. While the cremation process itself may not change significantly, costs will rise.

"I don't expect prices to go down, rather they will go up with inflation and other costs," said Barbara Kemmis, executive director of the North American Cremation Association. "Fuel costs and staffing shortages have had a big impact."

While the number of deaths is steadily increasing, enrollment in marine science is declining. Due to staff shortages, fewer people have more work, resulting in higher personnel costs.

"We've seen consistent staffing shortages for a long time," Kemmis says.

Kemmis also foresees a consolidation trend where retiring baby boomers will sell their family funeral homes to corporations. She expects price increases to follow.