TAMPA - Planning a funeral is an emotionally difficult process, but unfamiliarity with the funeral industry can leave consumers vulnerable to fraudulent schemes that range from overpaying for goods and services to the embezzlement of prepaid funds.
Angie's List founder, Angie Hicks, said many consumers will go to the same funeral home that their family has used, simply because they have experience and they know what to expect. "But funerals are expensive so it is good to shop around to make sure you are getting the best price possible,” she said.
Pre-planning helps you avoid making rushed decisions and allows you to shop around without time constraints. The national average cost of a funeral is $6,600, but some cost thousands more than that. On average, consumers spend $2,295 for the casket alone. Other costs include vaults, embalming, cremation, funeral staff and facilities, transportation for deceased and family. You can even purchase programs and note cards, tribute videos and online memorials from some funeral homes.
“Many funeral homes offer an opportunity to pre-pay your funeral fees," Hicks said, "but if you’re going to do that you need to make sure that there’s protection against that funeral home going out of business. Is there insurance that’s provided – can those funds be transferred to another funeral home? Because the last thing you want to do is spend that money and find out it’s no longer there.”
Funeral home employee, Barbara Milton, advises families to come in with an open mind. "Because a lot of consumers are unaware of the different options that have evolved over time." Milton adds, "They might come in with a concept that they want ground burial or they want cremation that helps a professional to be able to guide them to the right products and the right placement for them. That is what that professional is there for - to answer questions and to help edit down for them.”
A nationwide Angie’s List poll found:
- 51 percent of Angie’s List members in a recent poll have never planned a funeral;
- Of those who have, 19 percent say the experience was a poor one.
- 53 percent consider family tradition and reputation the most important factors in choosing a funeral provider.
“What I see often is people spend far to much money trying to have a marvelous funeral or the best casket and in many cases that’s not really what the deceased person would have wanted at all," said Kathleen Hartman, a Certified Financial Planner. "So I think one of the key things is to really let your family members know what you would like and I would put it in writing and I would distribute it to everybody. Some people want something very simple, others do want something a little more elaborate and that is perfectly fine too. But you are really saving them a lot of time - and often family arguments or problems - when there are a lot of other things they are going to be having to take care of too."
In 1984, the Federal Trade Commission established the Funeral Rule , which is designed to protect consumers by requiring funeral providers to give adequate information about their services:
Angie’s List tips for pre-planning a funeral:
- Talk to your family about your wishes and write down a plan: Do you want a traditional burial or cremation? Do you want a simple or elaborate funeral? Share your ideas with family and put all your wishes in writing.
- Know your rights - shop around: According the FTC’s “Funeral Rule” you have the right to stop in any funeral home and request a General Price List (GPL). Visit several funeral homes and use the lists to compare prices. If a funeral home says you have to buy a certain kind of casket, urn, etc. ask why and find out the law or regulation that requires it.
- Pre-paying for a funeral: Be very cautious if you decide to pre-pay for services with a funeral home – ask what happens to your money if you want to transfer the funds to a different funeral home or if the funeral home you’ve selected goes out of business. Only nine states have funds that step in to protect consumers when funds are stolen or if the funeral service goes out of business. Florida is one of them. If you choose to pre-pay now, a better option is to put that money in a checking or savings account and add a POD - payable on death designation. Your bank or credit union will have you fill out a form and have it paid to the person who will be taking care of the arrangements. Talk to a certified financial planner about the best plan for you.
- Licensing is mandatory for funeral directors nationwide. You can confirm a funeral director’s license by checking with the licensing board in your state. Requirements vary from state to state, but most call for individuals to be at least 21 years old, have two years of education that include mortuary science, serve a one-year apprenticeship and pass an exam.
- Schedule a meeting with the funeral director: Take this time to ask the director your questions (including services/costs)
PRINT
