When a loved one dies unexpectedly, it is hard enough to cope with the shock and grief, let alone organize a funeral. The added pressure of doing so when they have passed away without any life insurance or way of paying for a funeral when you can’t afford it is a lot. You may think being uninsured leaves someone with one option, i.e., contacting the state to handle basic arrangements but there are other options you can explore before resorting to that.
The first thing to consider is what type of funeral you want for the deceased or what kind of service they wanted for themselves. The options are burial and cremation, with the latter being the cheaper of the two, and even with low cost funerals, the cremation cost can range from around $4,500 to $7,000 depending on the location, type of casket or urn used, etc. Other costs involved in cremation are the basic service, the transfer to the funeral home, embalming, facilities and ceremonial costs, and the fee for the cremation itself. A burial, by comparison, can cost up to $10,000 depending on location with similar variables to consider.
Either way, it’s a hefty sum to come up with if your loved one was uninsured or underinsured.
Here are some avenues to help pay for these costs:
Social security funeral grant — The single payout of between $225 and $250 that serves as a funeral grant to a surviving spouse won’t cover all the expenses but it is an entitlement that will contribute to the sum total if you’re eligible and a social security beneficiary.
Veterans Benefit — The US Department of Veteran Affairs can cover the funeral expenses of almost all veterans and they are also usually eligible for free memorial items like headstones, markers and medallions. Amounting to between $300 and around $800, the payout can go towards any part of funeral costs, and in some circumstances, the VA can cover the cemetery and transportation costs. Veterans who died in service are eligible for up to $2,000 to cover expenses.
Crowdfunding — Fundraising through your own network is common, and it’s possible to raise a significant proportion of the expenses you need through various platforms. There are even sites that are specific to crowdfunding for funeral expenses or memorial costs. It is quick and straightforward to set up a campaign and funds are processed quickly. Although, you shouldn’t underestimate how difficult this is. According to the Crowdfunding Center, a mere 22.4% of campaigns are successful — the average amount raised in 2019 in the US was $824. However, those already skilled in self-marketing and generating attention on social media have an advantage in pursuing this route.
401k plan — What 401k plans are for are ordinarily retirement, but you can draw down money for unexpected expenses, including funeral expenses. The first step is to contact the 401k administrator about a hardship withdrawal. These are subject to a 10% penalty if you withdraw it before you turn 59 1/2 years of age, as well as taxes. The alternative is a 401k loan, which some plans allow for up to 50% of the 401k fund, which must be paid back with interest.
Equity loan — A loan can provide a temporary injection of cash and taking equity on your home gives you lower interest rates than other loans. The rates will be the same as your mortgage, which means taking an equity loan won’t worsen your immediate financial circumstances.
Credit card cash advance — A cash advance will give you a quick short-term loan, but be mindful of doing this on a low-interest credit card as it has to be paid back. There may also be additional fees attached to the advance.
Local charity or church — There aren’t many charities that solely provide financial assistance for adult funeral costs. However, a few offer eligible beneficiaries help to cover a child’s funeral costs like Children’s Burial Assistance, Final Farewell, and the TEARS Foundation. Some local organizations, however, may be able to cover adult funeral costs under their mission. In addition, if you’re part of the congregation of a local church or other religious institution, or you have a friend or family member connected to one, they might be willing to help. For example, the church might provide a venue for the funeral service or spread the word among their congregation if fundraising.
State aid — Assistance varies across counties and cities, but many local authorities offer benefits for people living below the poverty line, so it is worth inquiring about what state aid is available.
State coroner — Some state coroners may have financial assistance programs for funerals. Alternatively, the state could handle your affairs, although, this would leave you little control over burial options or arrangements.
vCERN Fund — To avoid finding yourself in a situation where you fall short on funeral costs, try vCERN Fund, which is a proactive fundraising platform with multiple life pools. Each life pool is comprised of at least 1,000 compassionate members who agree to raise $20,000 for any member who passes away in their pool by making a monetary donation
vCERN Fund is easy to get. It is 10 times more affordable than traditional life insurance and you can get the same benefits without the hassle.
A key benefit to vCERN is there are no monthly commitments. You donate only when someone passes away. And your health condition or your age doesn’t affect its cost. No social security is needed to gain access, either. The platform is also very easy to use and has a referral program so you can earn incentives whenever you recommend a signup. The extra funds can be used to cover the cost.
While life insurance is the best solution, there are alternatives if your life insurance quote is too high or if your coverage is lacking. vCERN is among the best of these alternatives. Sign up to the platform today and start building towards a future safety net.
