Financing a funeral FAQs


Death can show its cruel hand at the most inopportune moments because sometimes an unexpected death occurs catching you off guard because you do not have money to handle funeral costs. If you do not have a life cover, or savings put away that can assist, then you will find that you are not able to handle the expenses arising from the funeral preparations. It would, therefore, be a good idea to plan things in advance; however, this may not always be possible.

 There are a number of ways you can raise funds to cater for your funeral including government assisted funerals, help from the community and friends, emergency loans among others. None of these provide an easy way to raise money, so you need to prepare yourself mentally and psychologically for a level of disappointment.

 What are some of the frequently asked questions with regards to funerals and their financial implications?

What happens when you cannot afford a funeral?

This is quite a common scenario, but as indicated above, there are other ways of getting funds to give your loved one a befitting send-off. You can apply for state-assisted burials but you will have to prove your eligibility.  If the state feels that you do not qualify for the loan you will not get the money, meaning you will be back in square one position. You may reach out to your community members, the employer of your loved one, or try crowdfunding on the internet to get people to contribute towards the funeral costs.

Is it a good idea to take an emergency loan to pay for the funeral?

 This is not a yes or no kind of question and comes down to the individual’s preference and their ability to pay the loan. Since the loans are unsecured, the lender will require that you have a good credit rating and that you should be able to pay them back in the shortest time possible. The high-interest rates may act as a deterrent for some people, but if you feel you are able to pay them back, they may not be a bad idea.

Just make sure that you understand the requirements and that you have a complete grasp of the way the calculations on the interest happens.

Can I pay for a funeral upfront?

This really depends on the funeral home you are using. Some funeral homes have packages that allow you to pay for the funeral at a later date while others require that you are able to make a big part of the payment upfront. Others will take the insurance cover in lieu of advanced payment thereby giving you time to get yourself together financially. However, please note you will still have to pay back the money.

 Some funeral homes have packages that they offer clients; they enter into agreements with lenders to extend these loans to their clients making it easier for you because you do not have to start the negotiation process on your own. Make sure you understand the terms of reference before you agree to such an arrangement.