Price Shopping & Saving Money On Average Funeral Costs
Families often emotionally overspend by hundreds even thousands of dollars when purchasing funeral arrangements. Overspending is common for several reasons:
- The emotional impact of losing someone can cloud judgment.
- There are often pressing time constraints.
- Many on-the-spot decisions must be made.
- Most families have no prior experience in funeral planning.
- Some funeral homes and cemeteries may take advantage of the situation and put profit ahead of saving the family money.
Funerals today can easily exceed $10,000.
Lets say you need a new car. Do you pull in to the first lot you see, buy the first car you test-drive, and accept the sticker price without question?
Of course not. When we shop for cars, we talk to salespeople , drive different vehicles, consult consumer magazines, and negotiate the price. If a specific make or model has a bad reputation or is priced too high, we walk away and look for a different car. We want a good car at the right price, and were willing to do some homework to get it.
We do the same kind of comparison shopping for smaller purchases computers, for instance, or large appliances like washers and dryers. We know doing a little research will get us the features we want for the price were willing to pay.
Here are some tips to save money:
If you are certain you want a burial rather than a cremation, typical expenses include:
Other Things You Need To Know
There are limits on how much survivors may earn while they receive benefits.
Benefits for a widow, widower, or surviving divorced spouse may be affected by several additional factors:
- If you remarry before age 60 , you cannot receive benefits as a surviving spouse while you are married.
- If you remarry after age 60 , you will continue to qualify for benefits on your deceased spouse’s Social Security record.
- If you receive benefits as a widow, widower, or surviving divorced spouse, you can switch to your own retirement benefit as early as age 62. This assumes you are eligible for retirement benefits and your retirement rate is higher than your rate as a widow, widower, or surviving divorced spouse.
- In many cases, a widow or widower can begin receiving one benefit at a reduced rate and allow the other benefit amount to increase.
- If you will also receive a pension based on work not covered by Social Security, such as government or foreign work, your Social Security benefits as a survivor may be affected.
However, if your current spouse is a Social Security beneficiary, you may want to apply for spouse’s benefits on their record. If that amount is more than your widow’s or widower’s benefit, you will receive a combination of benefits that equals the higher amount.
Does Original Medicare Cover Funeral Costs
Original Medicare coverage doesnât cover burial or funeral costs in the event of a beneficiaryâs death. This also applies if the beneficiary was enrolled in a Medicare Medical Savings Account plan, a type of a high-deductible Medicare Advantage plan that includes a savings account used to pay for medical expenses. Funeral or bereavement expenses arenât considered medical expenses and canât be paid for using funds from a Medical Savings Account plan.
While Medicare coverage is limited, the Social Security Administration does pay survivor benefits, which you can then use to pay for funeral costs. This death benefit is a one-time payment to the spouse or child of the beneficiary. Eligibility and the benefit amount will depend on how long your loved one worked and paid Social Security taxes.
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How Long You Can Get Hospice Care
Hospice care is for people with a life expectancy of 6 months or less . If you live longer than 6 months, you can still get hospice care, as long as the hospice medical director or other hospice doctor recertifies that youre terminally ill.
- You can get hospice care for two 90-day benefit periods, followed by an unlimited number of 60-day benefit periods.
- You have the right to change your hospice provider once during each benefit period.
- At the start of the first 90-day benefit period, your hospice doctor and your regular doctor must certify that youre terminally ill . At the start of each benefit period after the first 90-day period, the hospice medical director or other hospice doctor must recertify that youre terminally ill, so you can continue to get hospice care.
Bcrc Issues A Rights And Responsibilities Letter:
After the MSP occurrence is posted, the BCRC will send you the Rights and Responsibilities letter. The RAR letter explains what information is needed from you and what information you can expect from the BCRC. A copy of the Rights and Responsibilities Letter can be found in the Downloads section at the bottom of this page. Please note: If Medicare is pursuing recovery directly from the insurer/workers compensation entity, you and your attorney or other representative will receive recovery correspondence sent to the insurer/workers compensation entity. For more information on insurer/workers compensation entity recovery, click theInsurer Non-Group Health Plan Recoverylink.
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Reporting The Case To The Bcrc:
Whenever there is a pending liability, no-fault, or workers compensation case, it must be reported to the BCRC. Reporting the case is the first step in the Medicare Secondary Payer NGHP recovery process. Click the Liability, No-Fault and Workers Compensation Reporting link for more information.
Once the case has been reported, the BCRC will collect information from multiple sources to research the MSP situation, as appropriate 111 Mandatory Insurer Reporting submissions, and workers compensation entities).
If the BCRC determines that the other insurance is primary to Medicare, they will create an MSP occurrence and post it to Medicares records. If the MSP occurrence is related to an NGHP, the BCRC uses that information as well as information from CMS systems to identify and recover Medicare payments that should have been paid by another entity as primary payer.
What Is The Social Security Death Benefit
If you receive Social Security death benefits, they might be used to cover funeral expenses. Its doubtful that the payment will be substantial. If your spouse or kid survives you and meets specific criteria, they will receive $255 in a lump sum.
Your spouse is most likely to receive the death payment if you still live together when you pass away. Suppose you arent living together at the time of your death. In that case, your spouse may be eligible for the money as long as they have received Social Security benefits on your account.
If you die without a spouse, your money may be transferred to your children if they are eligible for benefits on your record the month of your death.
This money should be paid out as soon as the Social Security Administration reports the death. However, because burial services generally take place very quickly, theres a chance this cash wont arrive in time.
Suppose you pass away and your spouse or child is eligible but does not receive compensation. In that case, they must apply for the death payment within two years of your passing.
Also Check: Medicare Explanation Of Benefits Online
Do You Need Final Expense Insurance
Whether a final expense policy makes sense ultimately depends on the details of your financial situation. If you’ve saved enough to cover these costs, or you have an existing life insurance policy, then final expense insurance may not be necessary.
On the other hand, if there’s a possibility that your retirement savings may fall short of your target number, this type of coverage could help reduce the financial burden for your spouse. Social Security does offer some benefits for spouses, opens new window, but theyre somewhat limited.
Look at all the angles in terms of how much you have saved for retirement. Figuring out how much you expect your final expenses to be is helpful for creating a more complete picture of your long-term financial needs. Perhaps a final expense policy fits in.
Medicare Coverage Of Funeral Expenses
Shawn Plummer
CEO, The Annuity Expert
Medicare is a government-run health insurance program that provides healthcare coverage to individuals 65 years of age and older and those with specific disabilities. Therefore, it is essential to understand what Medicare covers, including funeral expenses. In this guide, we will provide an overview of Medicare coverage of funeral expenses and answer some common questions people have about this topic.
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Faqs: Medicares Role In End
About eight of 10 of the 2.6 million people who died in the US in 2014 were people on Medicare, making Medicare the largest insurer of health care provided during the last year of life.1 In fact, roughly one-quarter of traditional Medicare spending for health care is for services provided to Medicare beneficiaries in their last year of lifea proportion that has remained steady for decades.2 The high overall cost for health care received in the last year of life is not surprising given that many who die have multiple serious and complex conditions.
Aside from cost, several other factors contribute to difficult clinical and policy discussions about whether patients are getting the care they want or need as they approach the end of their lives. Research has found, for example, that most adults say they would prefer to receive end-of-life care in their home if they were terminally ill, yet data show that only about one-third of Medicare beneficiaries died at home.3
Q1: What is end-of-life care and does Medicare cover it?
Q2: What is advance care planning and does Medicare cover it?
Q3: Are policymakers, such as CMS or Congress, considering changes in Medicares coverage of advance care planning?
Q4: What are advance directives? Are health care facilities, such as hospitals or skilled nursing facilities, required to keep records of Medicare patients advance directives?
Q5: Does Medicare cover hospice care? How many Medicare beneficiaries use hospice?
Endnotes
State Help With Funeral Costs
Every state has a specific budget and rules for funeral assistance. Although, you can always contact that state department of health or the county coroner for help. The Department of Health and Human Services may provide burial for poverty-stricken people. Youll apply for help at the health department in the county where the deceased resided.
Some states dont provide funeral assistance. But, there may be county or city assistance. Funeral help varies across the nation. Yet, one thing is clear, no matter which state you live in, burial policies give your family peace of mind during a time of grief.
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When A Family Member Dies
We should be notified as soon as possible when a person dies. However, you cannot report a death or apply for survivors benefits online.
If you need to report a death or apply for benefits, call 1-800-772-1213 . You can speak to one of our representatives between 8:00 am 7:00 pm. Monday through Friday. You can also contact your local Social Security office.
Making Affordable Cremation Arrangements
With direct cremation services, you pay only for a simple, dignified cremationno bells, no whistles, and no hidden fees. This allows providers to offer their services at a fraction of the cost of a traditional funeral homes offerings without sacrificing the quality of their service.
If you need to make arrangements for a loved one who has recently passed, Tulip Cremation offers an at-need cremation service. Our service includes transporting your loved one from their place of passing into our care, preparation, cremation, and the safe return of their ashes to you.
If you or a loved one wishes to make plans for the future, you can easily sign up for one of our two prepaid cremation plans. We offer monthly payment plans for both of our Simple Plan options local and worldwide. Both offer guaranteed pricing that protects against inflation and other price increases, meaning youll never pay more than what you signed up for.
If you are expecting a death in the family within the next six months, we also offer an imminent-need plan which allows you to make the initial arrangements for their cremation now and pay only once our services are needed.
Tulip Cremations direct cremation service is simple and budget-friendly, with low, upfront pricing and no extra fees hiding in the fine print. For more information or to begin arranging your loved ones cremation, call our Care Team or visit our website to arrange online quickly and easily.
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How Does A Medicare Msa Work
There are two parts to getting access to an MSA.
Make Sure There Arent Any Other Funds Available
Sometimes people have life insurance without even being aware of it. Look through the paper trail your loved one left behind. Contact his or her place of employment to see if the company purchased a life insurance policy for your loved one.
If the deceased was a member of a union or the armed forces, they may qualify for a veterans death benefit or assistance from the union.
There may also be a death benefit of a couple of hundred dollars through the Social Security Administration.
» MORE:
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Medicare Coverage And Funeral Costs
Generally speaking, Medicare does not cover funeral costs. Bereavement and funeral costs are not considered medical expenses and do not fall within the coverages allowed by Original Medicare.
Other parts of Medicare dont typically cover funeral costs, either: Medicare Supplement Insurance plans and most Medicare Advantage Plans, also known as Part C, will not cover your funeral costs. Out of all of the options offered by private insurance companies, only one will allow you to use funds to cover final expenses: a Medicare medical savings account .
What Kind Of Burial Benefits Can I Get
If youre eligible, you may receive these benefits:
- VA burial allowance for burial and funeral costs
- VA plot or interment allowance for the cost of the plot or interment
- VA transportation reimbursement for the cost of transporting the Veterans remains to the final resting place
Note: You’ll need to pay for these services or other costs first before you apply for an allowance.
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Is There A Time Limit For Filing
You must file a claim for a non-service-connected burial allowance within 2 years after the Veterans burial or cremation. If a Veterans discharge was changed after death from dishonorable to another status, you must file for an allowance claim within 2 years after the discharge update.
Theres no time limit to file for a service-connected burial, plot, or interment allowance.
About Medicare Death Benefits
In certain situations, both Medicare and Social Security provide funds to the estate of a deceased. Since Medicare provides health and hospitalization insurance to individuals over age 65, any funds paid out after an enrolled person’s death cover a portion of final medical expenses. By contrast, Social Security issues a fixed cash payment to a qualified spouse or dependent child.
Read Also: Does Medicare Cover Death Benefits
Does Social Security Cover The Cost Of My Funeral
We spend our whole lives planning for our future, but many of us donât prepare for our passing. Itâs not really what any of us want to think about, but eventually, we will die, and there will be a funeral. Funerals arenât free, nor are they cheap. The average cost of a funeral these days is around $10,000.
Losing a loved one is hard, and no one wants to add to that by leaving a financial burden. Some strategic planning on your part will make sure your arrangements are taken care of, so your family doesnât have to worry about paying for your funeral expenses.
So, why does a funeral cost so much, and does Medicare or Social Security cover any of those costs?
Plan ahead with our helpful Funeral Planner. Jot down all the details and give your family peace of mind.
Ways To Help Cover The Cost Of Your Funeral
We have six ways to help you cover your final bill. We think some are better than others, but each one has its benefits, and depending on our circumstances, it could be the right fit for you.
Most funeral homes want to be paid upfront, so leaving arrangements through your will isnât ideal. Your family will have to pay for the expenses and wait for probate to reimburse them, which could take months or even years, depending on the circumstance and legalities.
Your final wishes will be carried out by those you love. Choosing the right beneficiary is important for you and all your loved ones.
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Talk With A County Administrator
Your funeral director or coroner will be able to connect you with the proper county administrator who would know about local funds that are available to help pay for funeral expenses.
If this doesnt work, check out your countys official website and look for a contact in the health and human services department.