A Consumer Guide To Funerals

Protecting Your Right To Choose A Meaningful, Dignified and Affordable Funeral

When a loved one dies, grieving family members and friends often are confronted with dozens of decisions about the funeral - all of which must be made quickly and often under great emotional duress. What kind of funeral should it be? What funeral provider should you use? Should you bury, cremate or entomb the body? What are you legally required to buy? What other arrangements should you plan? And, as callous as it may sound, how much is it all going to cost?

Each year, Canadians grapple with these and many other questions as they spend millions of dollars arranging more than 200,000 funerals for family members and friends. The increasing trend toward pre-need planning - when people make funeral arrangements in advance - suggests that many consumers want to compare prices and services so that ultimately, the funeral reflects a wise and well-informed purchasing decision, as well as a meaningful one.

A Consumer Product

Funerals rank among the most expensive purchases many consumers will ever make. A traditional funeral, including full services, casket and vault cost, on average, about $6,243. in 2002/2003 (as quoted in the Board of Funeral Services newsletter, December 2003), although "extras" like flowers, obituary notices, cemetery charges, cremation fees, clergy stipends,  and government  taxes and fees can add thousands of dollars to the bottom line. Some funerals have even cost over $10,000.

Yet even if you're the kind of person who might haggle with a dozen dealers to get the best price on a new car, you're likely to feel uncomfortable comparing prices and the details and cost of a funeral, pre-need or at need. Compounding this discomfort is the fact that some people "overspend" on a funeral or burial because they think of it as a reflection of their feelings for the deceased.

Pre-Need

To help relieve their families of some of these decisions, an increasing number of people are planning their own funerals, designating their funeral preferences, and sometimes even paying for them in advance. They see funeral planning as an extension of will and estate planning.

Planning
Thinking ahead can help you make informed and thoughtful decisions about funeral arrangements. It allows you to choose the specific items you want and need and compare the prices offered by several funeral providers. It also spares your survivors the stress of making these decisions under the pressure of time and strong emotions.

You can make these arrangements directly with a funeral establishment.  One other important consideration when planning a funeral pre-need is where the remains will be buried, entombed or scattered. In the short time between the death and burial of a loved one, many family members find themselves rushing to buy a cemetery plot or grave - often without careful thought or a personal visit to the site. That's why it's in the family's best interest to buy cemetery plots before you need them.

You may wish to make decisions about your arrangements in advance, but not pay for them in advance. Keep in mind that over time, prices may go up and businesses may close or change ownership. It's a good idea to review and revise your decisions every few years, and to make sure your family is aware of your wishes.

Put your preferences in writing, give copies to family members and your attorney, and keep a copy in a handy place. Don't designate your preferences in your will, because a will often is not found or read until after the funeral. Avoid putting the only copy of your preferences in a safe deposit box. That's because your family may have to make arrangements on a weekend or holiday, before the box can be opened.

Prepaying
Thousands of Canadians have entered into contracts to prearrange their funerals and prepay some or all of the expenses involved. In Ontario alone, there was over $900 million dollars in trust or in insurance products for prepaid contracts as of October 31, 2001.  Laws of individual provinces and territories govern the prepayment of funeral goods and services; various provinces have laws to help ensure that these advance payments are available to pay for the funeral products and services when they're needed. But protections vary widely from jurisdiction to jurisdiction so be sure to check on the laws governing prepaid funeral trust money in your locale.  Most areas require the funds be placed in a guaranteed investment or insurance policy to ensure the funds will be held  safely without the effects of financial market volititlity.    ,

If you're thinking about prepaying for funeral goods and services, it's important to consider these issues before putting down any money:

·                           What are you are paying for? Are you buying only merchandise, like a casket and vault, or are you purchasing funeral services as well?

·                           What happens to the money you've prepaid? Provinces have different requirements for handling funds paid for prearranged funeral services.

·                           What happens to the interest income on money that is prepaid and put into a trust account?

·                           Are you protected if the firm you dealt with goes out of business?

·                           Can you cancel the contract and get a full refund if you change your mind?

·                           What happens if you move to a different area or die while away from home? Some prepaid funeral plans can be transferred.

·                           If there are excess funds held in trust at the time of need, what is done with this money?

·                           What are the tax benefits of prepaying a funeral?

Be sure to tell your family about the plans you've made; let them know where the documents are filed. If your family isn't aware that you've made plans, your wishes may not be carried out. Worse yet, if family members don't know that you've prepaid the funeral costs, they could end up paying for the same arrangements. You may wish to consult an attorney on the best way to ensure that your wishes are followed.

Consumer Protection

Most funeral providers are professionals who strive to serve their clients' needs and best interests. But some aren't. They may take advantage of their clients through inflated prices, overcharges, double charges or unnecessary services. Fortunately, some funeral homes allow you to choose only those goods and services you want or need and to pay only for those you select, whether you are making arrangements pre-need or at need.

In Ontario, funeral homes are required to list all goods and services in their General Price List.  This price list must be made available upon request.  Many funeral providers offer various "packages" of commonly selected goods and services that make up a funeral. But when you arrange for a funeral, you have the right to buy individual goods and services. That is, you do not have to accept a package that may include items you do not want.

Some funeral homes have websites to allow you to gain more information about them and their prices in the privacy of your own home.

Remember:

·                           you have the right to choose the funeral goods and services you want (with some exceptions).

·                           the funeral provider should provide you with a general price list.

·                           a funeral provider that offers cremations must make alternative containers available so a casket does not have to be purchased

·                           some funeral homes even offer a casket that can be “rented” for the period of visitation and service but is not cremated.  This can be less expensive than buying a casket.

What Kind of Funeral Do You Want?

Every family is different, and not everyone wants the same type of funeral. Funeral practices are influenced by religious and cultural traditions, costs and personal preferences. These factors help determine whether the funeral will be elaborate or simple, public or private, religious or secular, and where it will be held. They also influence whether the body will be present at the funeral, if there will be a viewing or visitation, and if so, whether the casket will be open or closed, and whether the remains will be buried, cremated or entombed.

Among the choices you'll need to make are whether you want one of these basic types of funerals, or something in between.  Funeral services should be personalized and unique.  Just as you or your loved one’s life is different, so should your funerals be different.

"Traditional," full-service funeral
This type of funeral, often referred to by funeral providers as a "traditional" funeral, usually includes a viewing or visitation and formal funeral service, use of a hearse to transport the body to the funeral site and cemetery, and burial, entombment or cremation of the remains.

It is generally a more expensive type of funeral because it requires a greater use of the funeral establishment and their staff.  In addition to the funeral home's basic services fee, costs often include embalming and dressing the body; rental of the funeral home for the viewing or service; and use of vehicles to transport the family.  Some funeral homes do charge extra for a “family car”, while others don’t.  The costs of a casket, cemetery plot or crypt and other funeral goods and services also must be factored in.

Direct burial
The body is buried shortly after death, usually in a simple container. No viewing or visitation is involved, so no embalming is necessary. A memorial service may be held at the funeral home, church or graveside. Direct burial usually costs less than the "traditional," full-service funeral. Costs include the funeral home's basic services fee, as well as transportation and care of the body, the purchase of a casket or burial container and a cemetery plot or crypt. If the family chooses to have a memorial service, additional fees will apply.

 Direct cremation
The body is cremated shortly after death, without embalming. The cremated remains are placed in an urn or other container. No viewing or visitation is involved, although a memorial service may be held, with or without the cremated remains present. The remains can be kept in the home, buried or placed in a crypt or niche in a cemetery, or buried or scattered in a favorite spot. Direct cremation usually costs less than the "traditional," full-service funeral. Costs include the funeral home's basic services fee, as well as transportation and care of the body. The appropriate crematory and coroner’s certificate fees will be added on. There also will be a charge for an urn or other container. The cost of a cemetery plot or crypt is applicable only if the remains are buried or entombed.

Funeral providers who offer direct cremations also must offer to provide an alternative container that can be used in place of a casket.

Choosing a Funeral Provider

Many people are amazed at the choices involved in selecting a funeral provider.  As with many purchases, it’s best to use a funeral home  with a solid reputation.  Many funeral homes advertise that they provide “dignified services” or are “family owned”.  Look for characteristics that make a funeral stand out from the others.  Do they have your best interest at heart?  Is their pricing system fair?  

Consumers often select a funeral home or cemetery because it's close to home, has served the family in the past, or has been recommended by someone they trust. But people who limit their search to just one funeral home may risk paying more than necessary for the funeral or narrowing their choice of goods and services.

Comparison shopping need not be difficult, especially if it's done before the need for a funeral arises. If you visit a funeral home in person, the funeral provider is often required by law to give you a general price list itemizing the cost of the items and services the home offers. Sometimes it's more convenient and less stressful to "price shop" funeral homes by telephone. Funeral homes  can provide price information over the phone to any caller who asks for it. In addition, many funeral homes are happy to mail you their price lists.

When comparing prices, be sure to consider the total cost of all the items together, in addition to the costs of single items. Every funeral home should have price lists that include all the items essential for the different types of arrangements it offers. Many funeral homes offer package funerals that may cost less than purchasing individual items or services. Offering package funerals is permitted in most areas.  By using the price lists can you accurately compare total costs.

In addition, there's a growing trend toward consolidation in the funeral home industry, and many neighborhood funeral homes are thought to be locally owned when in fact, they're owned by a national or international corporation. If this issue is important to you, you may want to ask if the funeral home is locally owned.

Funeral Costs

Funeral costs include:

1. Basic services fees for the funeral director, staff, facilities, vehicles, embalming and preparation, documentation, funeral stationery and additional services.

2. Charges for funeral goods such as caskets, urns,  and outer burial containers for caskets or urns.

3. Cash advances for such items as flowers, obituary notices, pallbearers, officiating clergy of celebrants, musicians, cemetery,  crematory or  government fees,

Calculating the Actual Cost

The funeral provider can give you an itemized statement of the total cost of the funeral goods and services you have selected when you are making the arrangements. If the funeral provider doesn't know the cost of the cash advance items at the time, he or she can provide a written "good faith estimate."

Services and Products

Embalming
Many funeral homes require embalming if you're planning a viewing or visitation. But embalming generally is not necessary or legally required if the body is buried or cremated shortly after death. In some provinces, a funeral provider:

·                           may not provide embalming services without permission.

·                           may not falsely state that embalming is required by law.

Caskets
For a "traditional," full-service funeral:
The casket makes up only a portion of the total funeral service costs.  Funeral providers should offer caskets that vary widely in style and price.  Typically, they're constructed of metal or wood. Although an average casket costs slightly more than $2,000, some mahogany, bronze or copper caskets sell for as much as $5,000.

When you visit a funeral home or selection  room to see the caskets, the funeral director should have already shown you the general price list so you are aware of what you are looking at.  In addition, some funeral providers have informative labels on each casket to describe each individual casket to help you make an educated decision.  Industry studies show that the average casket shopper buys one of the first three models shown, generally the middle-priced of the three.

It’s best to view all the caskets offered before making a decision.  No matter which casket you buy, it's important to remember that its purpose is to provide a dignified way to move the body before burial or cremation. No casket, regardless of its qualities or cost, will preserve a body forever. Some funeral homes describe caskets as  "gasketed," "protective" or "sealer" caskets. These terms mean that the casket has a rubber gasket or some other feature that is designed to delay the penetration of water into the casket and prevent rust.   Some funeral homes “push” these benefits.  As yourself, “ Is that really important to me?” These features do not help preserve the remains indefinitely. They just add to the cost of the casket.

Most metal caskets are made from rolled steel of varying gauges - the lower the gauge, the thicker the steel. Some metal caskets come with a warranty for longevity. Wooden caskets generally are not gasketed and don't have a warranty for longevity. They can be hardwood like mahogany, walnut, cherry or oak, or softwood like pine.  Manufacturers of both wooden and metal caskets usually warrant workmanship and materials.

For cremation:
Many families that opt to have their loved ones cremated rent a casket from the funeral home for the visitation and funeral, eliminating the cost of buying a casket. If you opt for visitation and cremation, ask about the rental option. For those who choose a direct cremation without a viewing or other ceremony where the body is present, the funeral provider must offer an inexpensive unfinished wood box or alternative container, a non-metal enclosure – pressboard or other combustible material - that is cremated with the body.

Burial Vaults or Grave Liners
Burial vaults or grave liners, also known as burial containers, are commonly used in "traditional," full-service funerals. The vault or liner is placed in the ground before burial, and the casket is placed into it at burial. The purpose is to prevent the ground from caving in as the casket deteriorates over time. A grave liner is made of reinforced concrete and will satisfy any cemetery requirement. Grave liners are very simple containers.   A burial vault is more substantial and expensive than a grave liner. It surrounds the casket in concrete or another material.  Some cemeteries require the use of an outer container while others don’t.

Neither grave liners nor burial vaults are designed to prevent the eventual decomposition of human remains. It is unethical for funeral providers to claim that a vault will keep water, dirt or other debris from penetrating into the casket if that's not true.

Preservative Processes and Products
As far back as the ancient Egyptians, people have used oils, herbs and special body preparations to help preserve the bodies of their dead. Embalming is the temporary preservation of a dead human body, allowing for viewing at the visitation and funeral.   Decomposition will eventually occur.

Cemetery Sites

When you are purchasing a cemetery plot, consider the location of the cemetery and whether it meets the requirements of your family's religion and personal wishes.   Other considerations include what, if any, restrictions the cemetery places on burial vaults, the type of monuments or memorials it allows, and whether flowers or other remembrances may be placed on graves.

Cost is another consideration. Cemetery plots can be expensive, especially in metropolitan areas. Many  cemeteries require you to purchase an outer burial container. Note that there are charges - usually hundreds of dollars - to open a grave for and interment and subsequent re-filling of the grave. Perpetual care on a cemetery plot sometimes is included in the purchase price, but it's important to clarify that point before you buy the site or service. If it's not included, look for a separate endowment care fee for maintenance and groundskeeping.

If you plan to bury your loved one's cremated remains in a mausoleum or columbarium, you can expect to purchase a crypt and pay opening and closing fees, as well as charges for endowment care and other services.

This article is based on the report by the Federal Trade Commision Report entitled  "Funerals: A Consumers Guide"

For More Information

Most provinces have a licensing board that regulates the funeral industry. You may contact the board in your province for information or help. If you want additional information about making funeral arrangements and the options available, you may want to contact one of the following:

Ontario Funeral Service Association -  a voluntary, professional organization representing funeral directors and those in ancillary professions.                                 Learn more at  www.ofsa.org

The Funeral Service Association of Canada - a nation-wide group of funeral homes that promote the highest moral and service standards.                                        Learn more at www.fsac.ca

The Canadian Independent Group of Funeral Homes - through sharing of information, experience and knowledge, this group of more than 500 family owned community funeral homes strives to enhance quality of service for consumers and better enable small independent funeral homes in Canada to compete with large international corporations.             Learn more at www.cigfh.ca

The Ontario Board of Funeral Services – the regulatory body for funeral homes in Ontario to ensure the protection of consumer’s rights and the ethical operation of funeral providers.   
                                                                                                            Learn more at www.funeralboard.com 

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