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to the funeral home rather than your own beneficiary (like your spouse). You’ll generally pick out your own funeral arrangements, and then buy pre-need insurance in an amount that covers your picks. You also generally lock in prices at the funeral home this way. Pre-need plans are good for people who want to select their own funeral arrangements and not have to worry about their loved ones negotiating payment, which can help alleviate guesswork and stress. A major downside to pre-need insurance is a loss of flexibility. If your family’s financial needs change over time, it may be difficult to make changes when you’re locked into a contract. For example, if you move to another state, not all pre-need plans will move with you. Some pre-need plans offer “portability,” meaning the policy will move with you. Pre-need plans are usually subject to the Federal Trade Commission’s (FTC) “3-day cooling off rule.” This allows you to cancel the contract within three business days. Some states allow for a “free look” period that’s longer than FTC’s three-day timeframe and allows buyers to cancel pre-need insurance and get a full refund. However, the timeframe for cancellation varies by state. For example, in Massachusetts, you can get a full refund if you cancel within 10 days of signing the contract. In Florida, you can get a full refund in the first 30 days. Burial insurance and pre-need funeral insurance are two different products. The biggest difference is burial insurance makes a payout to your beneficiaries, while pre-need insurance typically pays a funeral home where you have arranged funeral details. Social Security pays a small lump sum payment of $255 to a surviving spouse if they were living with you. If your surviving spouse was not living with you, they may be eligible if they were receiving certain Social Security benefits on your record. If you do not have a surviving spouse, the payment can be made to a child who is eligible. If burial insurance isn’t right for you, here are some other options. Payable on death (POD) account: A POD account lets you put money aside for a funeral and you name who can access the money when you pass away. A POD account is a good way to avoid having the funeral funds tied up in probate. Your beneficiary cannot access the money while you’re alive, but you can withdraw (or add) money to the account at any time. POD accounts are also called “Totten Trusts.” Funeral trusts: This is an agreement where you can set aside money for a funeral and name a trustee. The trustee can withdraw from the account to pay for your funeral after you pass away. Trusts: In this agreement, a trust owns the life insurance policy. When you pass away, the trustee makes the claim and the money is distributed according to the wishes you outlined in the trust documents. Savings account: You can use a regular savings account to pay for a funeral, but the money could be tied up in probate (unlike a POD account). You may be able to avoid this problem by adding a beneficiary to a joint savings account, but keep in mind that they will have full access to the account while you’re alive. What Happens If a Family Can’t Afford a Funeral? If you cannot afford a funeral or burial, you may be able to get government assistance from a federal program such as: Veterans benefits: If you are a veteran, you can be buried in one of the 141 national cemeteries at no cost. Spouses and children of veterans could also qualify. Veterans might also qualify for a burial allowance up to $2,000 for veterans who died on or after Sept. 11, 2001, and $1,500 for veterans who died before Sept. 11, 2001. Check with the U.S. Department of Veteran’s Affairs for eligibility requirements. Federal Emergency Management Agency (FEMA): For deaths as a result of an event that was declared a major disaster or emergency, you may qualify for FEMA Funeral Assistance to help with expenses such as a casket or urn, burial or cremation, and the cost of a maker or headstone. State government assistance: Many states have programs to help if you cannot afford a funeral or burial. In states that have programs, you’ll have to apply for assistance at the county or municipal level. Here is a list of programs by state, compiled by Funeralwise. Crime victim compensation programs: Some states have funds to help pay for funerals for victims of violent crimes. Here is a list of state programs from the National Association of Crime Victim Compensation Boards Personal loans: If you cannot afford funeral expenses, you could apply for a personal loan through your bank, credit union or other lenders. While this is sometimes called a “funeral loan,” it’s really a personal loan that you can spend any way you like. Personal loans are typically “unsecured,” meaning they do not require collateral (like a lien on your car) and tend to carry high interest rates, which could range between 16% to 35%, according to AARP. Crowdfunding: Also called “crowdsourcing,” crowdfunding generally refers to raising money through donations from the general public. Many people have raised funeral funds on sites like GoFundMe, as well as through donations from churches and other organizations. Funerals can be expensive, but you can shop around. Costs can vary for the same type of service in the same town. A 2017 investigation by NPR found a funeral home that charged more

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