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Funeral plan with a funeral loan.

What Are Funeral Loans, and How Can They Help?

Losing a loved one or family member is a devastating experience. Unfortunately, it is all too often a sudden, unexpected loss. Dealing with how to move forward and say goodbye to a loved one is an emotionally difficult experience. For many families, the funeral and its expenses create a financial burden. 

Funeral loans can help ease the financial burdens associated with the high costs of a funeral. In addition, it can help give families and loved one's peace of mind and help alleviate the expense so they can concentrate on dealing with their grief and planning the funeral. 

Funeral loans are sometimes the only option to deal with the costs of saying goodbye to a loved family member. So, let's look at funeral loans and see if they are the best choice. 

What Is a Funeral Loan?

Funeral loans are personal loans to help cover the cost of a funeral, burial, and all its related expenses. They are the same as personal loans.

Funeral loans do not require any collateral to secure the loan. Funeral loans are a quick and affordable option to handle the stresses and unexpected expenses of burying a family member or loved one. Funeral loans can help ease the burden at a difficult time, allowing you to grieve. 

Costs Associated with Funerals

Funerals can be a costly, unexpected expense. The average funeral cost is over $7,000 for a burial, and the price is over $9,000 for a vault. These figures don't even cover a headstone or grave markers. Unfortunately, most families are unprepared to cover these high costs without financial help.   

Many funeral homes require the total cost of the burial in advance and do not offer payment plans. This strain can be a massive burden on a grieving family. 

Below, some of the costs of a funeral are listed: 

  • Burial costs and embalming services
  • Funeral home Fee
  • Memorial services
  • Funeral plot
  • Grave marker and headstone
  • Casket
  • Suit for burial
  • Hearse for transporting 
  • Officiant 
  • Musician
  • Flowers, wreaths, and decorations

Who Covers the Cost of the Funeral? 

Most of the funeral costs are the responsibility of the spouse or family members. The deceased's estate will be required to cover the expenses if no spouse exists. It may also fall on the family members if it wasn't previously covered. 

This can place a large financial burden on the family if a loved one suddenly passes without prior arrangements. There are grants or loans available, but most will be ineligible for any assistance, leaving the entire burden on their families.  

A woman paying her respects to a loved one.

Can I Get a Funeral Loan? 

Anyone is eligible to take out a funeral loan to cover the costs. You do not need to be the next of kin or a family member to get a loan and help pay for the service. Often, families will split the costs, each taking out a funeral loan to assist with the costs of burying a loved one.  

How To Get a Funeral Loan   

Funeral loans can be applied for online, with most lenders approving and transferring the money to your account in just a few days. They are a fast and easy option to alleviate the financial stresses of a funeral. They allow you to concentrate on the service without any worries. 

Funeral loans can allow you to afford the service you would like to provide without paying the full costs upfront. Instead, they enable you to pay for the costs over time in a structured payment plan with no hidden fees or prepayment penalties.   

How Much Should I Get for a Funeral Loan?

How much you should take out for a funeral loan depends entirely on your budget. You should only take out a loan you can afford to repay according to your budget. The loan amount will depend on different factors and can be tailored to fit your budget. 

You should also speak with the funeral director and discuss your options for paying for the funeral. For example, paying as much as possible out of pocket before needing the loan could help with your budget and how much of a loan is required for the rest of the expenses.  

How To Prepare for Funeral Costs 

The best option would be a life insurance policy to help prepare for your or a loved one's funeral. They can be costly but would ensure your family can care for all your wishes once you have passed on. 

If insurance is too expensive or unavailable to you, there are still other options. For example, a Pay-On-Death account could be set up as a trust to name a loved one or family member and provide them with the finances to carry out their wishes without needing a lengthy probate process.  

What Are Some Advantages of a Funeral Loan? 

Some funeral loan companies can work directly with the funeral home and coordinate payment, helping to ease one of the burdens of losing a loved one. Funeral loans are also quick and easy to fill out online. Most funeral loan lenders can decide and have the money ready in a few days. 

Funeral loans can help cover the cost of burying or cremating a loved one or friend. They can assist when no other assistance is available to cover the costs. They allow the borrower to concentrate on the funeral and not on how to pay for it.  

What Are Some Ways To Save on Funeral Expenses?  

The best way to save money on expenses is to be upfront and discuss the options with a funeral director. Handling a lot of the arrangements can save a lot of additional costs. Purchasing headstones and markers online can also help with the expenses.

The best option to save on costs is to have a cremation. They are more affordable since you don't have to purchase a cemetery plot, casket, or gravestone. In addition, there is an online database run by the FTC to check the current funeral prices and costs of services.

What if I Can't Afford the Funeral?

If there isn't enough money, don't despair. There are always other options. Some state and local governments have local programs to help with financial assistance. 

If all else fails, you may have to sign a release and allow them to be cremated. You may have the option to reclaim the ashes. If you cannot reclaim the ashes, they are usually buried in a common grave with other unclaimed ashes. 


Losing a loved one or a family member is a difficult struggle. However, adding the unexpectedly high cost of a funeral can add unneeded stress during a time of grief. Funeral loans can help cover the burial costs and related expenses needed to put your loved one to rest. 

Funeral loans allow you to concentrate on planning the service and saying goodbye to a loved one without worrying about the high costs associated with a funeral. In addition, they are paid over a set time, giving you flexibility when planning the expenses.

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