End-of-Life & Funeral Preplanning Resources

Most of us include cost-of-living expenses in our budgets, such as housing, health care and groceries. However, many Americans are unaware of how expensive end-of-life costs can be. Depending on which services the funeral home provides, sudden funerals can cost thousands of dollars. The various other end-of-life costs, such as health care and legal services, can add an even more significant financial burden on older adults or their loved ones.

Death can occur suddenly and with no warning, leaving families scrambling to cover the unexpected final expenses. If your parent or loved one is nearing the end of life and doesn't have a nest egg to cover these final expenses, the financial burden could fall on you. This guide will help you understand the possible costs and how you can preplan your loved one's funeral.

Common End-of-Life Expenses

There are many common costs related to end-of-life care. The cost of dying and end-of-life care include health costs, legal costs, funeral costs and burial costs.

Common Health Costs

In a loved one's later years, they may be undergoing medical treatments to heal an injury or cure an ailment or disease. Therefore, end-of-life health care costs can include hospice care, hospital care, respite care and palliative care.

• Hospice care: After treatment for a terminal illness ends and every option has been exhausted, the next step is usually hospice care. Hospice workers may conduct services in a care facility or at home. The goal of hospice care is to manage your loved one's pain, not prolong their life. This type of treatment may include assisted living care, nursing home care or in-home care.
• Hospital care: In some situations, end-of-life care is needed suddenly due to an unexpected injury or illness. Many Americans die in the hospital during their final month of life, racking up thousands of dollars. If a death occurs in the intensive care unit, their hospital stay can cost thousands of dollars a day. Along with hospital stays, doctor visits may contribute to these costs.
• Respite care: This type of care offers a short break for the caregiver of a terminally ill person. Your terminally ill loved one can stay for a few days at a Medicare-approved hospice facility, hospital or nursing home.
• Palliative care: Health care professionals can provide palliative care alongside traditional health care. This type of care focuses on stress relief, emotional support and assistance with alleviating symptoms. Palliative care can lower other health care costs involved with end-of-life care, such as medication.

Common Legal Expenses

Legal expenses are costs that commonly come as a surprise when preparing for the end of life. Many Americans hire attorneys who can help prepare a will, as this legal documentation can be overwhelming and time-consuming. A will assigns power of attorney, specifies the appropriate end-of-life measures and stipulates cremation or burial.  

Medical teams and loved ones should be made aware of end-of-life directives. When you prepare information upfront, you can avoid mistakes and unwanted hassles.

Common Funeral and Burial Costs

Since funeral and burial expenses can be so costly, it's essential to consider and prepare for them. While cremation is often more affordable than burial, all types of funeral expenses have grown exponentially in the last few decades. While estate planning can include these costs, you may have to bear the burden of them.

Making decisions during the end of a loved one's life can be a difficult and emotionally taxing time, along with being challenging financially. Fortunately, there may be ways to cover these end-of-life care expenses.

Who Pays for End-of-Life Care?

There may be coverage options for some end-of-life expenses. Often, government entities like Medicare and Medicaid, as well as private insurance, cover end-of-life care costs.

Medicare

Medicare is available to Americans age 65 or older, those diagnosed with a serious illness or those who have agreed to forgo potentially curative or life-saving treatment. Medicare must pay for all medically necessary hospital and doctor care. In addition, Medicare may cover hospice care services, such as:

• Counseling
• Nursing care
• Inpatient care
• Physician services
• Bereavement services
• Medical social worker services
• Medical supplies and appliances
• Occupational and physical therapies
• Speech-language pathology services
• Homemaker and hospice aide services

However, Medicare doesn't cover some costs, such as room and board, prescription drugs or treatment attempting to cure illness and emergency care like emergency room costs and ambulance fees.

Medicaid

Medicaid covers end-of-life care costs for eligible adults. Beneficiaries eligible for both Medicare and Medicaid may have coverage for costs that just Medicare doesn't cover, such as long-term care and outpatient prescription drugs. 

Eligibility requirements for Medicaid hospice are almost identical to Medicare's eligibility requirements, and a Medicare-certified agency or hospice must provide services. However, policies for Medicaid also vary by state.   

Private Insurance

Private insurance can vary widely by policy and coverage terms. If a policy includes end-of-life care, palliative care or hospice care, private insurance will cover most costs. Though not all plans cover hospice care, many do since it's usually more affordable than hospital treatment. Additionally, if a policy covers this type of care, there may be limits on the covered expenses.