Frazer Blog

Funeral Payment Options: How to Help Families Choose the Right Option for Them

by | Aug 8, 2022 | Funeral Home Marketing, Funeral Home Websites, Funeral Payment Options

A person paying online with a credit card

Per a Bankrate survey, only 40% of Americans can afford an unexpected expense of $1,000.  Let that percentage sink in. Now, think about the cost of a funeral. According to NFDA, the 2021 median funeral cost was around $7,848. If 60% of people can’t afford an unexpected $1,000 expense, how are they supposed to afford a funeral payment? 

Fortunately, your funeral home can help these families by offering multiple funeral payment options. This way, they can afford to honor their loved one, and you don’t need to turn away families. 

Let’s briefly break down five funeral payment options below. We’ll share how they work, why a family might choose them, and how to educate your community about them. 

1. Making the Funeral Payment Online Through Credit Card Processing 

What Is It? 
Credit card processing is when the family uses a credit card to cover the funeral payment. Nowadays, they expect this as an online payment option, not just in person. The most convenient option would be through a secure payment platform directly on your website. Case management software that integrates with your accounting even lets you email the invoice. 

Why Might a Family Choose This Option? 

Comfort. Convenience. Time. Safety. These are typically the four main motivators for why a family would choose online credit card processing.  

  • Comfort: Someone who is grieving may prefer to stay in the privacy of their home. 
  • Convenience: It’s inconvenient for out-of-town families to commute. 
  • Time: People are busy. It’s much faster to pay online in seconds. 
  • Safety: Due to the pandemic, people may feel safer limiting in-person interactions. 

If multiple people are paying for the funeral expenses, it gets even more complicated for them to coordinate schedules. With online credit card processing, they can easily split the payment without ever leaving their homes. 

2. Paying for the Funeral Expenses with an Electronic Check or ACH Payment 

What Is It? 
With electronic checks and ACH, families can transfer funds directly from their bank account to the funeral home’s account. It works just like a physical check, but it’s more convenient since everyone completes the process entirely online. 

Why Might a Family Choose This Option? 

These reasons may be similar to the ones for credit card processing. It’s a matter of personal preference whether they want to pay via credit card or electronic check. If they have the funds available, they may want to do an electronic check, so the payment is out of sight and mind. If they don’t have the funds or would rather keep their savings and build up their credit, they may want to use a credit card payment. 

3. Starting a Crowdfunding Campaign to Raise Funds for the Funeral and More 

What Is It? 
Funeral fundraising involves starting an online crowdfunding campaign to reach out to the community for support. Family, friends, or even kind strangers can simply make whatever donation amount they choose – all from the comfort of their home or on the go. 

It’s best to use a built-in crowdfunding tool rather than a third-party platform. With a built-in tool on your website, your firm remains in control of the funds and campaign, not someone else. 

Why Might a Family Choose This Option? 

Many families may start crowdfunding campaigns for support on the funeral expenses and other important expenses, such as:  

  • Memorial funds 
  • College funds 
  • Medical bills
  • Living expenses

If the family is low on funds, crowdfunding likely won’t be their sole payment option. They could also pair it with another option to cover the rest of the costs. 

4. Applying for Funeral Financing to Pay Back Over Time 

What Is It? 
Funeral financing is when the family takes on a loan to pay back the funeral expenses. This is done through a lender, so your funeral home gets paid back right away while the family pays back the lender over time. 

Why Might a Family Choose This Option? 

Every family is different, but these are the two buckets most families fall into when choosing funeral financing:  

  1. They can’t afford to pay all at once, so they’d rather make payments over time. 
  1. They have the savings but would rather keep them for emergencies. 

Financing gives families the flexibility they need and peace of mind that they can afford to give their loved one the final sendoff that they deserve. 

5. Using a Life Insurance Assignment to Cover the Funeral Expenses 

What Is It? 
If the deceased had a life insurance policy, the family may be able to pay for the funeral expenses with a life insurance assignment. Using an online life insurance assignment program is the way to go. It’s faster to submit a claim online in minutes, and there’s less paperwork for you and your families. Instead of getting funds in days, you could get them in just a few hours. 

Why Might a Family Choose This Option? 

Choosing to pay with a life insurance assignment has many benefits for families, such as:  

  • Not needing to take on an extensive loan 
  • Not needing to use up their emergency savings 
  • Avoiding potential family conflicts about who should pay and how much 

How Can I Market These Payment Options to My Community? 

Below are just a few ways you can educate your families about their payment options: 

  1. Write a blog post – like this one! Explain how all the options work, why they may choose one over another, and walk them through what you offer. 
  1. Create a handout to give families during the arrangement meeting. You could also upload it to your website as a downloadable resource. 
  1. Add FAQ to your website. Ask your employees what payment questions they’re asked the most and include those on your website to save everyone time. 
  1. Record a short video. Some people may prefer to watch a quick video rather than read an article.  
  1. Host a webinar or seminar. This gives families the chance to attend a live event in person or virtually to ask any questions. 

Did you know your Frazer website integrates with Tribute Pay? This payment platform includes all the funeral payment options covered in this blog post. Schedule a demo to start getting paid faster today! 


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