Consumer Information

How Do You Compare Funeral Costs?

This section of our web site is devoted to consumer information. It is our sincere hope that this information will serve to educate families on what to expect when making funeral arrangements, how the Federal Trade Commission funeral rule is designed to protect consumers, and how to make informed decisions at a very difficult time.

The Federal Trade Commission Funeral Rule

Around 1984, the Federal Trade Commission Rule was drafted in order to standardize the way funeral services and merchandise are purchased in the United States. The rule is designed to protect consumers by requiring all funeral homes to itemize their service charges and separate them from their charges for merchandise (caskets, vaults, urns, etc.) and accommodation items (cemetery charges, minister’s stipends, flowers, etc.).) Before the rule, most funeral homes included the charges for their services with the casket selected. There are two basic problems with this pricing system. The first is that not every family wants to use all of the services a funeral home provides. Some families may not want to have a public visitation the day prior to the funeral service, or use all of the automobiles the funeral home offers, etc. Under the old system there was no way to make deductions for the items of service a family did not require. Secondly, since the price of the funeral service was predicated on the casket selected, it was difficult for families to compare prices between funeral homes. Most consumers can’t look at a casket and know what material it is constructed from, which determines the price. The Federal Trade Commission rule solves these problems by itemizing all the service charges and separating them from the merchandise.

According to the rule, the total cost of a funeral service is broken down into three basic parts: Services, Facilities, and Automobiles; Merchandise (Casket, Vault, Paper Products) and Accommodation (Cash Advance) Items. There are also four documents, which every funeral home must have and share with the consumer. These consist of the General Price List, the Casket Price List, the Outer Burial Container (Vault) Price List, and the Statement of Funeral Goods and Services Selected.

General Price List
Under the funeral rule, every funeral home is required to have a general price list. The general price list must include the following categories. Basic Services of Funeral Director and Staff; Transfer of Remains to Funeral Home; Embalming; Other Preparation of the Body; Facilities Charges and Staff Services; and Automotive Equipment. The Trade Commission does not regulate what individual funeral homes charge for these categories. Therefore, there can be substantial differences in service charges between funeral homes in the same area. The general price list must also include a price range for caskets, vaults, cremation urns, and charges for paper products (register book, memorial folders, and acknowledgement cards). Also included on the price list is the charge for Direct Cremations, Forwarding Remains to Another Funeral Home, and Receiving Remains from Another Funeral Home. A funeral home is required to give you a copy of their General Price List for your retention any time funeral arrangements are discussed in person. Funeral homes must also give you the information on the price list over the phone.

Casket Price List

Under the funeral rule, every funeral home is required to have a casket price list. This list should include every casket the funeral home offers for sale. The casket price list should list the material the casket is constructed from (20 ga. Steel, 18 ga. Steel, Solid Oak, Oak Veneer, 32 oz. Copper, etc.) the manufacturer's trade name and the type of interior (crepe or velvet) The funeral home is not required to let you retain the casket price list, but most funeral homes should let you keep a copy.

Outer Burial Container Price List

Under the funeral rule, every funeral home is required to have an outer burial container (Vault) price list. This list should include the manufacturer, the material it is made from, and the trade name (Monticello, Continental, Venetian, etc.)

Statement Of Funeral Goods And Services Selected

The statement of goods and services selected is completed by entering the itemized costs of the selections you have made concerning Services/Facilities/Autos, Merchandise, and Accommodation Items. This document is completed and signed by the funeral director and the purchaser at the conclusion of the arrangements conference.  Links to our current price lists and samples of completed statements of goods and services, as well as a blank statement of goods and services, can be found on the left side of the screen.

Price Comparisons

The Federal Trade Commission Rule allows consumers to compare prices between funeral homes due to the standardization of pricing structures throughout the country. Obviously, price comparisons must be done prior to need. As with any business or profession, the old adage, “you get what you pay for,” does not always hold true. The highest-priced funeral home may not be the best. The prices a funeral home charges should not be the most important or only factor used to determine which firm to place your trust in. Experience, honesty, professional skill, facilities, and caring, compassionate service should all be factored in. To compare prices between funeral homes, you need to consider the total price of the services and merchandise you require. Some funeral homes will have a higher-than-normal service charge but offer their merchandise at a lower price than a competing firm. Others may be just the opposite with a low service charge and higher merchandise charges. The best way to compare prices is to select the specific type of funeral service you are interested in (traditional funeral service, funeral service with visitation the same day, traditional cremation service, immediate cremation with memorial service, etc.) and determine the price for those services. Next, select the merchandise you are interested in, a specific casket; for example, an 18 Ga. Steel Neopolitan Blue manufactured by Batesville Casket Company, and a Venetian burial vault manufactured by Wilbert Vault Company, or a Regal Urn, manufactured by Wilbert Vault Company, etc., and make a direct comparison of the exact services and merchandise at another funeral home. This can be done in person or over the phone. Accommodation (cash advance) items should also be included in the total. These would include outside services that a funeral home agrees to pay for you, such as the grave opening at the cemetery, minister, organist, vocalist stipends, luncheon expense, flowers, obituary notices, monument engraving, etc. These items should be the same between firms unless the funeral home charges a fee for cash advances.

Packages

Under the funeral rule, funeral homes can package services as long as they itemize the individual charges on their price list. Look at these closely. Sometimes the package price will be higher than if you selected the items of service separately. This is especially common with cremation packages. The funeral home or cremation society may have an artificially low immediate cremation price but if you add any type of service, graveside, memorial, etc. the price is higher than if you selected that particular service from the general price list.

Available Merchandise

Another area where consumers can be misled is the list of available merchandise shown on a funeral home’s casket price list. Occasionally, a funeral home will only list a small number of options on their list, often from the more expensive models, made from 18 gauge steel, 16 gauge steel, stainless steel, copper, and bronze, without listing any, or very few of the less expensive models made from 20 gauge steel. It is also important to know that many manufacturers make caskets from solid wood, Walnut, Oak, Cherry, Maple, Pecan, Poplar, etc. as well as models that look much like the solid wood models but are made from engineered wood with a wood veneer exterior. While there are many very attractive veneer caskets available, they will always be less expensive than the solid wood alternative.

Terms of Payment

Another important area to consider is the terms of payment a funeral home requires. Some funeral homes require a full cash payment, credit card including a 2 to 4% convenience fee, an existing pre-paid funeral plan, an insurance assignment on an existing life insurance policy including a 3% to 4% convenience fee, or proof of a signed and authorized installment loan from a bank, before services are conducted. At Phillips Funeral Home we understand that it may be difficult for a family to access the funds in an estate or insurance policy immediately. Therefore, we have always been willing to offer our client families terms of payment due within 30 days without finance charges of any kind for our Services, Merchandise, and Cash Advance items.

Example of a Recent Cost Comparison

A few months ago, a family visited with us in order to share a price quote received from another local funeral home. A traditional funeral service was selected with visitation, followed by a funeral service at the funeral home the following day as well as interment in a local cemetery. The casket selected was a C-95 Silver Pearl, 18 Gauge Steel by Batesville Casket Company, and the vault was a “Venetian” vault by Wilbert Vault Company. The printing package was also selected, including register book, custom color printed memorial folders and acknowledgement cards. The itemization was as follows:

As you can see, making the assumption that all funeral homes in the same geographic area charge the same or very similar prices for their services and merchandise would be an expensive mistake. Of course, if a different type of service or casket and vault combination was selected, the price difference between these firms could be slightly higher or lower but without making a comparison prior to need, a consumer would not know the difference.  Fortunately, the FTC. Funeral Rule makes it relatively simple to make your own cost comparison, which can be done in person or over the phone.

To make this easier for consumers, please follow the link to our price list information as well as pictures and prices for all the caskets and vaults we offer as well as budgeting for cash advance items.

One final word of advice in making cost comparisons…be leery of a funeral home that solicits their pre-planning services to you through direct mail or telemarketing. Their goal is to sell you a pre-funded funeral plan before you have had an opportunity to compare pricing between area funeral homes. We strongly believe in pre-planning for all of life’s eventualities, including our own deaths, but pre-paying for funeral services may not always be in the best interest of you or your family. Also, be cautious of a funeral home that agrees to discount its price for services and merchandise to meet the price of another firm. Obviously, they intended to overcharge you, but since you are an educated consumer, they will discount your price and make it up on the next family they serve who wasn’t as prepared.

If you have questions about any of the information presented here, please call or email Mike Phillips at the Funeral Home.