Funeral Home Payment Plans: What Families Need to Know

Yes, most funeral homes offer payment plans or some form of financing to help families cover funeral costs over time. The three most common approaches are in house payment plans offered directly by the funeral home, third party financing through companies like CareCredit or FuneralFunds, and accepting credit cards for partial or full payment. If you are worried about paying for a funeral, the most important step is to ask the funeral home directly before making any decisions.

Do Funeral Homes Offer Payment Plans?

The majority of funeral homes offer some form of payment arrangement, though the specifics vary widely. Some smaller, family owned funeral homes offer informal payment plans with no interest, allowing families to pay over 3 to 12 months. Larger corporate funeral homes are more likely to partner with third party financing companies that handle the credit application and collection process.

Not every funeral home advertises that payment plans are available. Many families assume they must pay the full amount before or at the time of the service, but that is not always the case. The best approach is to ask directly during your first conversation with the funeral director.

How to Ask a Funeral Home About Payment Plans

When you call or visit a funeral home, you can say something like: "We are making arrangements for our family member and want to understand all available payment options. Do you offer any payment plans or financing for families who cannot pay in full at the time of service?"

This is a normal and common question. Funeral directors hear it regularly and will not judge you for asking. If the funeral home does not offer payment plans, ask them to recommend alternatives or contact other funeral homes in the area that might.

You should also ask for a General Price List before discussing payment. Under the FTC Funeral Rule, every funeral home must provide one on request. This lets you see exactly what each service costs so you can make informed decisions about what to include and what to decline.

What Are the Terms?

Payment plan terms vary by funeral home. Here is what to ask about before agreeing to any arrangement:

• Interest rate: In house plans from family owned funeral homes are sometimes interest free. Third party financing typically charges 0% for a promotional period (6 to 24 months) and then a higher rate (often 20% or more) if the balance is not paid off in time.
• Duration: Most plans run 6 to 24 months. Some funeral homes allow longer terms for larger balances.
• Down payment: Many funeral homes require a portion upfront, often 25% to 50% of the total cost, before services are rendered.
• Late fees: Ask whether there are penalties for missed or late payments and how much they are.
• Total cost: Calculate the total amount you will pay including interest and fees. A payment plan with interest can add hundreds or thousands of dollars to the final cost.

What If the Funeral Home Says No?

If the funeral home you prefer does not offer payment plans, you have several alternatives:

• Funeral financing companies: Companies like FuneralFunds.com specialize in funeral financing and work with families who may not qualify for traditional credit. The application process is typically fast, sometimes same day approval.
• CareCredit: A healthcare credit card accepted at some funeral homes. Offers promotional 0% interest periods if the balance is paid within the promotional window.
• Personal loans: A personal loan from your bank or credit union may offer lower interest rates than funeral specific financing. Compare rates before committing.
• Credit cards: Most funeral homes accept major credit cards. If you have a card with a 0% introductory APR, this can function as an interest free payment plan.
• Contact another funeral home: Payment policies differ. If one funeral home cannot accommodate you, call two or three others. Prices for the same services can vary by 50% or more between providers in the same city.

Other Options for Families Who Cannot Afford a Funeral

If financing is not enough, there are additional resources available:

• Direct cremation: The least expensive option at most funeral homes, typically $1,500 to $3,500. You can still hold a memorial service separately at no cost.
• Medicaid burial assistance: Some states offer a small burial benefit through Medicaid, typically $200 to $1,500. Contact your local Department of Social Services.
• VA burial benefits: Eligible veterans receive up to $2,000 for service connected deaths and free burial in a national cemetery.
• County indigent burial programs: Most counties provide basic cremation or burial for families who truly cannot pay. Contact the county coroner or social services office.
• Crowdfunding: GoFundMe and similar platforms are widely used by families to raise money for funeral expenses. Many campaigns reach their goal within days.
• Body donation: Donating the body to a medical school is free. The institution handles transportation and cremation, and remains are typically returned within one to two years.

For a full guide on all available options, see our article on what happens if you cannot afford a funeral.

How to Compare Funeral Homes That Offer Financing

When comparing funeral homes, ask each one the same set of questions so you can compare answers side by side. Request the General Price List from at least three funeral homes. Ask each one whether they offer payment plans, what the terms are, and what the total cost would be including any interest or fees.

The funeral home with the lowest sticker price is not always the cheapest option once financing costs are factored in. A slightly more expensive funeral home with a 0% interest payment plan may cost less overall than a cheaper funeral home whose financing partner charges 20% interest. Do the math before you sign anything.