Finding Financial Assistance for Funeral and Burial Costs

Planning a funeral involves many considerations, such as determining what you can afford and anticipating expenses like transportation, flowers and services. Numerous resources are available to help cover these costs, including funeral benefits like life insurance and veteran assistance. Understanding these resources and your funeral rights can help you manage expenses without overextending your budget.

Many states and local municipalities offer programs to help cover funeral expenses for those in need. However, each state has its rules and budgets for funeral assistance, providing varying levels of support to families with low incomes. For example, New York's Burial Assistance Program provides up to $1,700 for funeral costs to those receiving public assistance or Supplemental Security Income (SSI). Similarly, Illinois offers up to $1,370 through its Funeral and Burial Benefit program.

Always check with your state's human or social services department for specific details. Applications typically require proof of financial need and documentation of the deceased's residency and family income.

The Veterans Burial Allowances program provides several benefits to alleviate funeral costs, including a VA burial allowance, a VA plot or interment allowance and a VA transportation reimbursement. It supports all legal burial types, including cremation, burial at sea and donation of remains to medical schools. This program is intended for those responsible for these expenses who are not reimbursed by other organizations, such as government agencies or the Veteran's employer.

To qualify, applicants must have a qualifying relationship with the Veteran, who must not have received a dishonorable discharge. Disqualifying circumstances include deaths that occur while the Veteran was on active duty, serving as a member of Congress or serving a federal prison sentence.

Applications can be submitted online or by mail using the Application for Burial Benefits (VA Form 21P-530EZ) and necessary documentation. Note that there are specific time limits for filing claims. For non-service-connected deaths or unclaimed remains, claims must be filed within two years after the Veteran's burial. If the Veteran died while receiving VA care, there is no time limit.

Eligible veterans can also be buried in a VA National Cemetery at no cost, covering the gravesite, grave liner, opening and closing and headstone or marker. Spouses and dependents may also qualify for burial in a national cemetery.

In addition to government programs, many charities and nonprofit organizations provide financial assistance for funeral expenses. These organizations help ease the financial burden and ensure families honor their loved ones with dignity. Below are some organizations you can reach out to:

• The Tears Foundation: This organization offers financial assistance to families who have lost an infant or child, covering burial or cremation costs. Families can apply through the foundation's website for detailed application instructions and eligibility criteria.
• Modest Needs: While not specifically for funeral costs, this foundation provides short-term financial assistance for emergency expenses, including funeral services. Applications are accepted through its website, which details eligibility requirements.
• UIC Children's Burial Assistance: This organization helps families afford burial expenses for children by providing donated burial plots, vaults and memorials. Families can contact the organization directly for resources and support.
• Final Farewell: Final Farewell assists families in providing affordable funerals for their children by offering financial aid and guidance to cover funeral expenses. Applications can be submitted online, and the organization works to provide prompt assistance.

In addition to these resources, calling 2-1-1 is an excellent starting point for finding local charities that offer funeral assistance. Operators can provide information on organizations in your area that can help. Contact these organizations before making any funeral arrangements.

Life insurance can be a reliable way to cover funeral expenses, ensuring families are not burdened with unexpected costs. You can use the benefits of a life insurance policy to pay for various funeral-related expenses, including burial, cremation and memorial services. Whole life and universal life insurance policies are particularly beneficial as they provide lifelong coverage and build cash value over time, which can be accessed if needed.

Term life insurance provides a death benefit for a specific period, such as 10, 20 or 30 years. This policy offers temporary coverage, often cheaper than permanent life insurance. If the policyholder dies during the term, the beneficiaries receive a lump sum payment that can cover funeral expenses, including burial or cremation costs, memorial services and related fees. However, if the policy term expires before the policyholder passes away, no death benefit is paid, and the beneficiaries will not have funds from the policy for funeral expenses.

Whole life insurance offers lifetime coverage with a guaranteed death benefit and a cash value component that grows over time. This policy ensures that beneficiaries receive a payout regardless of when the policyholder dies, making it a reliable way to fund funeral expenses. The death benefit can cover funeral-related costs, including casket and burial fees, cremation and service charges. Additionally, the cash value can be accessed or borrowed against while the policyholder is alive, providing funds for pre-arranged funeral plans.

Universal life insurance is a flexible form of permanent life insurance that allows policyholders to adjust their premiums and death benefits as their needs change. It provides a death benefit that can be used for funeral expenses, ensuring that beneficiaries have the necessary funds when needed. Universal life insurance also includes a cash value component that can be accessed or borrowed against, offering an additional financial resource for pre-funding funeral costs.

Final expense or burial insurance is designed specifically to cover funeral and burial costs. These policies typically offer smaller death benefits, making them an affordable option for individuals who want to ensure their funeral expenses are covered. Burial insurance is paid to a designated beneficiary for funeral costs. It can be used for all aspects of burial, cremation and funeral, as well as extras like flowers, obituaries and funeral transportation. It can also cover the deceased's credit card debt, medical bills or other debt.

Final expense insurance is often easier to qualify for than other types of life insurance. It requires minimal medical underwriting, making it accessible to older adults or those with health issues. The quick payout process ensures beneficiaries have funds to manage immediate funeral expenses.

Unlike burial insurance, which provides a lump sum to beneficiaries for funeral expenses, pre-need insurance is purchased directly from a funeral home. It covers specific pre-arranged services with payments made directly to the provider. This policy pays the funeral home directly for the services outlined in the agreement, ensuring that the policyholder's funeral wishes are honored and paid for in advance. Pre-need insurance can lock in funeral costs at current rates, potentially saving money in the long run. By assigning the policy benefits to the funeral home, the policyholder ensures the funds are used solely for the intended purpose.