Funeral home pricing: Here's what you should know and why federal regulations are about to change

Funerals typically cost between $7,000 and $10,000, including embalming, viewing, casket, service and burial.

There are few instances where comparing prices proves more difficult than when planning a surprise funeral. Current federal regulations, which haven't been updated since the mid-1980s, require funeral homes to provide prices in person but not online. Last week, the Federal Trade Commission (FTC) said its research shows that more than 60 percent of funeral homes provide little or no pricing information on their websites. That's why the FTC is considering updating its rules to require the same pricing information to be provided online as in person.

At last week's FTC public hearing, many representatives of the funeral home industry said that people don't make the decision to choose a funeral home based on price alone. While this may be true for many families, it would still be better for consumers if funeral homes offered prices for various services online, as they do on a general price list if you ask in person.

The FTC is expected to tighten the rules on funeral home price disclosure in the near future. The Funeral Home Rule requires funeral homes to provide consumers with itemized prices and prohibits funeral homes from misrepresenting laws or burial requirements. These include:

1. Charging fees for embalming without authorization;
2. A requirement to purchase a casket for cremation; and
3. Requiring consumers to pay for certain goods or services before receiving other goods or services.

Now that this topic is on the horizon, it's a good time to consider tips to help you make the best decision possible after the death of a loved one.

• Know Your Rights: The current rule requires disclosure of six prices:
  • charges for basic services;
  • casket price list;
  • embalming;
  • alternative containers for direct cremation;
  • a price list of prices for an external burial container;
  • and the consumer's right to choose only those goods and services he or she needs without having to pay for other goods and services he or she does not need.
• Learn about costs: Funerals typically cost between $7,000 and $10,000, including embalming, viewing, casket, service and burial. A funeral with cremation typically costs between $6,000 and $7,000. These costs do not include a cemetery plot.
• If you are going to the funeral home to make arrangements, take along a trusted friend or someone else who is not as close to the deceased to help you make decisions with a clear mind, ask questions and take notes.
• Ask for what you are entitled to. Under the Funeral Regulations, anyone can ask for and receive in person, at any place (such as a hospital or funeral home), a copy of the funeral home's general price list.
• Just because funeral homes aren't obligated to give you prices by phone, email or online doesn't mean you shouldn't ask. If a funeral home refuses and only wants to deal with you in person, you may want to cross it off your list, according to checkbook.org .
• Many general price lists are complicated and confusing. You should also ask for a written, itemized estimate for the activities you are considering.
• As difficult as it may be, it is highly recommended that you read up on what is involved in a funeral and store around before you have to hastily plan arrangements, or before your loved ones are faced with the task.
• Get help. Some nonprofit funeral consumer organizations offer educational programs and resources to help you understand your rights and options. The Funeral Consumers Alliance is a national umbrella group. Its website is funerals.org . Find your local alliance at funerals.org/local-fca/.
• Know how to keep costs down. If finances are an issue, you will benefit from knowing that embalming, which can cost up to $1,000, is not required if you plan to have a one-day funeral. You also do not have to purchase a casket from a funeral home. A casket can cost anywhere from $1,000 to $5,000. The markup can be five times the wholesale price. Or you don't have to use a casket; you can opt for a less expensive type of container.
• Realize that you can preplan services without paying in advance. Prepaid Plan Risk: If the funeral home goes out of business or embezzles your money, you may face additional, unnecessary stress. For more information on prepayment, see Funeral Consumers Allance magazine. https://funerals.org/?consumers=should-you-prepay-for-your-funeral
• Look for ways to pay for funeral expenses:
  Employers and pension plans sometimes offer resources.
  Honorably discharged veterans and their spouses may be eligible for burial in a national cemetery - there are 155 of them in 42 states.
  The Social Security Administration offers a small $255 death benefit for a surviving spouse or dependent child.
  Other assistance may be available from unions, fraternal organizations and clubs.