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End-of-life cost statistics underscore the need for better planning
$19,566. That’s the average “cost of dying” in the United States according to 2020 data compiled by Self Financial from the CDC and the National Funeral Directors Association.
The nearly 20k price tag represents a 14.3% increase over 2019. Whether the numbers are an anomaly caused by the pandemic and an increased demand for services, or just the evolving state of things, remains to be seen.
In any event, these costs, coupled with the fact that just over half of Americans have life insurance, suggest that in many places in America—including two of the most populous states, New York and California—the loss of a loved one risks creating enormous financial strain at one of life’s most trying times.
With planning, however, some of these costs can be mitigated. Being proactive about controlling aspects of the funeral, including casket selection, embalming, or choosing the more inexpensive method of cremation, could bring these numbers down significantly.
And while there are significant and inarguable reasons for holding a funeral—cultural, religious, and otherwise—those who resort to this option without considering other more inexpensive ones are ultimately creating an unnecessary burden for themselves and their families. (For more on low-cost funeral options and funding resources, read our article here.)
Beyond funeral costs, the study also looked at the burden of end-of-life medical care. Much has been made in recent years of how the medical establishment is designed to prolong life at any cost, a topic covered at length by the medical writer Atul Gawande in his book, Being Mortal. At least some of the burden of life-sustaining treatment can be avoided if families go through the (admittedly, difficult) process of creating a living will, a document that outlines the extent of care individuals wish to receive in order to remain alive. (For more on creating a living will or other medical directives, read our article here.)
Still, preparation isn’t going to solve the whole challenge of end of life costs. But it can help keep them manageable, while also providing a sense of control and peace, at a time when those emotions might be sorely needed.
