Plan Today. Protect Your Family Tomorrow.
Funeral Costs Continue to Rise Nationwide
The cost of funeral and cremation services has increased significantly, making advance planning more important than ever.
According to the National Funeral Directors Association’s latest published General Price List Study:
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The national median cost of a funeral with viewing and burial reached $8,300 in 2023, a 5.8% increase from 2021.
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The national median cost of a funeral with viewing and cremation reached $6,280, an 8.1% increase from 2021.
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These figures may not include cemetery property, grave opening and closing fees, monuments, flowers, obituary notices, transportation, or other related expenses.
Actual prices vary according to location, funeral provider, and the goods and services selected.
Without advance preparation, surviving family members may have to make important financial decisions while grieving. Preplanning allows you to make informed choices before the need arises.
What Is Preneed Funeral Insurance?
Preneed funeral insurance is a specialized form of life insurance designed to fund funeral arrangements selected in advance.
The process generally involves two related agreements:
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A preneed funeral agreement describing the funeral goods and services you select through a participating funeral provider.
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An insurance policy intended to provide the funds for those arrangements when the insured person dies.
Depending on the agreement, the policy benefits may be assigned to the funeral provider. At the time of death, the provider files a claim and uses the available insurance proceeds to provide the covered funeral goods and services.
The primary purpose of the benefit is to help provide the funeral arrangements selected in advance—not to leave your family searching for funds during an already difficult time.
What Can Preneed Insurance Help Cover?
Depending on the funeral agreement, policy, provider, and state requirements, arrangements may include:
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Funeral-home professional services
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Transportation and care of the deceased
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Embalming or other preparation
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Viewing or visitation
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Funeral or memorial ceremony
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Casket or alternative container
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Cremation services
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Urn
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Hearse and other funeral vehicles
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Printed memorial materials
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Other selected funeral goods and services
Cemetery property, burial plots, grave opening and closing, vaults, monuments, flowers, obituary notices, clergy honorariums, permits, and other third-party expenses may not be included unless they are specifically identified in the written agreement.
Federal law gives consumers the right to receive itemized funeral prices and select only the goods and services they want, whether arrangements are made at the time of death or in advance.
How Are Monthly Payments Determined?
First, you select the funeral arrangements that reflect your wishes and budget.
The cost of those arrangements helps determine the amount of insurance needed.
The insurance company then calculates the premium based on factors that may include:
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The cost of the selected funeral arrangements
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The amount of insurance coverage
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Your age
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Your health or answers to eligibility questions
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The policy’s payment period
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The policy’s benefits and provisions
Your scheduled premium pays for the insurance policy designed to fund the covered funeral arrangements. It should not be described simply as the funeral price plus a separate insurance charge. All premiums, policy charges, payment terms, and funeral costs should be clearly disclosed in the documents you receive.
Some plans may allow premiums to be paid monthly over a selected period. Available plans, eligibility requirements, waiting periods, and benefits vary by policy and insurance company.
Benefits of Planning Ahead
Preneed funeral insurance may help you:
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Make important decisions without the pressure of an immediate loss
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Reduce the financial and emotional burden on your family
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Communicate your funeral preferences clearly
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Organize your arrangements in one place
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Fund eligible funeral goods and services through manageable payments
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Give your loved ones greater direction when the time comes
Understand What Is Guaranteed
A preneed insurance policy provides an insurance benefit. Whether specific funeral prices are guaranteed depends on the separate funeral agreement and its written terms.
Before purchasing a plan, confirm:
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Which goods and services are included
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Which prices, if any, are guaranteed
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What expenses may require additional payment
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Whether the plan can be transferred to another funeral provider
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What happens if you move or cancel
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Whether a waiting or graded-benefit period applies
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Who receives any remaining policy proceeds
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What happens if the insurance proceeds are less than the final funeral cost
Schedule a Personal Preneed Consultation
Every family has different traditions, financial circumstances, and final wishes. CPIP Insurance can help you review your options, understand the costs, and determine whether preneed funeral insurance is appropriate for your needs.
Plan with confidence. Prepare with dignity. Protect the people you love.
Request Your Appointment Today
Contact CPIP Insurance to schedule a confidential, no-obligation consultation.
Insurance products, benefits, premiums, eligibility, and availability vary by applicant, policy, insurance company, and state. Funeral goods and services are provided by the funeral establishment identified in the applicable agreement—not by CPIP Insurance or the insurance company. Coverage is subject to the policy’s terms, exclusions, limitations, and applicable waiting periods. Guarantees concerning funeral prices or services apply only when expressly stated in the written funeral agreement. CPIP Insurance does not provide legal or tax advice.
