An older adult man and woman sit on a couch, looking over paperwork together.
The end of life can come with many costs. With proper planning, you can prepare for these costs and avoid placing a burden on your loved ones. Photo Credit: iStock.com/PeopleImages

End-of-life expenses encompass a range of costs associated with the final stages of a person’s life. They often extend beyond funeral arrangements and can include the costs of medical care, legal obligations, and other related expenditures. These financial burdens can significantly impact surviving family members, so it is essential to understand and plan for them. This article will explain various end-of-life expenses and ways to prepare for and cover them.

There are a number of medical and care expenses associated with the end of life.

Palliative care

Palliative care is specialized medical care focused on improving the quality of life for individuals living with serious, chronic, or life-limiting illnesses. Unlike curative treatment, palliative care is centered on relieving symptoms such as pain, fatigue, nausea, and emotional distress, while also offering support for complex decision-making and care planning. It is appropriate at any stage of illness and can be provided alongside curative treatments. A multidisciplinary team, typically including doctors, nurses, social workers, and chaplains, works together to address the physical, emotional, spiritual, and practical needs of the patient and their family.

Palliative care can be delivered in a variety of settings, including hospitals, outpatient clinics, nursing homes, and even at home. Many private insurance plans and Medicare may help cover some of the costs of palliative care services. While Medicare does not have a stand-alone palliative care benefit, it may cover physician consultations, medications for symptom management, and other related services. Medicaid and some state programs may also offer palliative care coverage. It is important to check with specific providers and insurers to understand the extent of coverage.

Hospice care

Hospice care is a form of compassionate end-of-life care designed for individuals who have a terminal illness and a life expectancy of six months or less, as certified by a physician. The focus of hospice is not to cure the illness but to provide comfort, dignity, and quality of life in a person’s final months. Hospice teams typically include doctors, nurses, social workers, chaplains, aides, and volunteers who work together to manage pain and symptoms, offer emotional and spiritual support, and help families cope with the challenges of caregiving and grief.

Hospice care can be provided wherever a person calls home, including private residences, assisted living facilities, nursing homes, and dedicated hospice centers. Medicare covers many hospice care costs, including nursing care, medications for symptom control, medical equipment, and counseling. Most state Medicaid programs and private insurance plans also provide hospice coverage. Patients must choose to forgo curative treatments for their terminal illness to qualify, although care aimed at symptom relief continues.

Long-term care

Senior long-term care refers to a range of services designed to support older adults who have chronic health conditions or disabilities that limit their ability to perform everyday activities independently. This type of care can include assistance with bathing, dressing, meals, medication management, and mobility in various settings such as nursing homes, assisted living communities, or at home through paid caregivers. Unlike short-term rehabilitative care, long-term care is ongoing and focused on maintaining quality of life rather than recovery. While Medicare generally does not cover most long-term care services, Medicaid may provide coverage for eligible low-income individuals, and long-term care insurance or private pay are also common funding sources.

The average expenditure for these categories of care will vary depending on the individual’s condition, where they live, the length of time the care is required, and the care setting. Expenses within a facility will generally be greater than those incurred at home. According to several studies, including the National Bureau of Economic Research, the average health care-related costs for the end of life are $15,419, ranging from $12,906 in Kentucky to $22,892 in Hawaii.

Funeral, burial, and cremation

The obvious expenses associated with the end of life are related to the funeral and burial or cremation of the individual. There are a number of expense categories that you should consider.

End-of-life expenses related to funerals encompass a variety of services and items designed to care for the deceased and provide meaningful closure for loved ones. These arrangements often begin with the preparation of the body, which may include embalming, dressing, and cosmetology, especially if there is to be a viewing or open-casket service. Funeral homes typically provide facilities for visitations, memorial services, and the coordination of clergy or officiants. Transportation services, such as a hearse and family vehicles, are also common components. For those choosing cremation, the process includes preparation of the body, the cremation itself, and the return of ashes in an urn. Families may also choose to hold a memorial service either before or after cremation, and ashes can be stored, scattered, or placed in a columbarium or burial plot.

For burials, expenses include the casket, the purchase of a cemetery plot, and services for opening and closing the grave. A burial vault or grave liner may also be required by the cemetery. Once the burial is complete, families often choose a headstone or grave marker, which may involve design, engraving, and installation. Additional services and items that contribute to the overall arrangements include floral tributes, printed programs, guest books, obituary publication, and certified copies of the death certificate. All these elements come together to create a respectful, organized farewell and lasting tribute to the individual’s life.

The average cost of a funeral and burial in the US is $7,364, ranging from $6,414 in Arkansas up to $10,630 in Hawaii. If you want to consider cremation, the average cost is lowered to $6,312, ranging from $5,471 in Arkansas to $8,584 in Hawaii. Keep in mind that these are average costs across a number of sources, including the World Population Review. The decisions that you make will either increase or decrease the costs of the funeral and burial or cremation.

Other end-of-life expenses

The third category of end-of-life-related expenses is centered on settling the estate of the deceased. There are no average costs available for any of these expense categories since every situation is going to be unique to the individuals involved, but expenses typically include the following:

  • Legal and administrative fees: Proper estate planning is crucial to ensuring a smooth transition of assets and minimizing legal complications. These expenses may include attorney fees, will preparation, probate filing fees, and executor costs.
  • Outstanding debts: Unsettled financial obligations, such as medical bills, credit card balances, or personal loans, do not disappear upon death. These debts are typically settled by the estate, which can reduce the inheritance left to beneficiaries.
  • Travel and accommodation costs: Family members may incur additional expenses related to travel and lodging when attending to a loved one’s final needs, participating in funeral services, or managing estate matters.

There are many ways to plan ahead for these end-of-life expenses. While the costs and preparation are important, it’s important to maintain a level of communication so that everyone is aware of what funds may be available and what expenses have already been paid for. Discussing end-of-life preferences and financial plans with family members is a critical yet often overlooked step. Transparent conversations help ensure that a person’s wishes are honored and reduce the likelihood of misunderstandings or conflicts during an emotionally charged time.

Sources of funds

Understanding the different types of end-of-life expenses is important as you plan ahead, but you should also plan for how to cover these costs to avoid placing a burden on your family. Here are some options to consider when planning to pay for these expenses.

  • Life insurance: A life insurance policy can provide a vital financial cushion for surviving family members. The death benefit may be used to cover medical bills, funeral costs, and remaining debts, helping to preserve the financial well-being of beneficiaries.
  • Final expense insurance (burial insurance): Final expense insurance is a specialized type of life insurance specifically designed to cover funeral and burial expenses. Policies typically offer smaller benefit amounts than traditional life insurance but have simpler underwriting processes and quicker payouts.
  • Pre-need funeral arrangements: Pre-need arrangements involve planning and paying for funeral services in advance. This approach can lock in prices, ensure that individual preferences are respected, and relieve loved ones of having to make emotional decisions under pressure.
  • Savings and investments: Designating savings or investment accounts for end-of-life costs provides flexibility and control. These funds should be easily accessible to trusted individuals to facilitate timely payment of expenses.
  • Long-term care insurance: This insurance product helps defray the costs of long-term care services not covered by Medicare. Purchasing long-term care insurance earlier in life can secure more favorable premiums and broader coverage.

Average costs by state

The table below illustrates the average cost by state for funeral/burial costs, funeral/burial/cremation costs, and end-of-life care and medical costs. These costs are averaged from a number of sources.

StateFuneral/BurialFuneral/Cremation/BurialMedical Costs
Alabama$6,766$5,872$13,212
Alaska8,0046,72121,124
Arizona6,9565,78014,278
Arkansas6,4145,47113,071
California8,6496,96019,085
Colorado7,2786,11015,561
Connecticut8,5377,40217,706
Delaware7,7386,73115,920
District of Columbia7,2495,791
Florida7,2186,08814,568
Georgia6,8605,95314,386
Hawaii10,6308,58422,892
Idaho6,8745,77314,583
Illinois7,1616,32214,261
Indiana6,9426,07514,237
Iowa7,2306,52614,310
Kansas6,8766,08514,022
Kentucky6,8285,90912,906
Louisiana7,0156,12714,424
Maine7,8836,69515,906
Maryland8,4797,20116,743
Massachusetts9,1087,71018,210
Michigan6,9546,10613,763
Minnesota7,6366,83616,060
Mississippi6,5185,65113,864
Missouri6,6715,75213,305
Montana7,2286,18115,137
Nebraska6,9746,23114,146
Nevada7,3866,18415,182
New Hampshire7,8196,64617,358
New Jersey8,2797,08116,420
New Mexico6,6125,66214,123
New York8,5077,11818,065
North Carolina6,8885,89615,437
North Dakota7,2736,51115,877
Ohio6,7675,79714,097
Oklahoma6,5195,65413,453
Oregon7,7646,25317,476
Pennsylvania7,3576,40414,862
Rhode Island8,0046,90016,949
South Carolina6,9535,95414,463
South Dakota7,1416,34614,756
Tennessee6,6505,74313,269
Texas7,0336,12113,949
Utah6,9845,89514,114
Vermont7,6906,49616,515
Virginia7,2636,28215,274
Washington7,3706,05217,362
West Virginia6,7065,83214,158
Wisconsin7,3166,48515,945
Wyoming6,7625,94014,165

This information is for educational purposes and is not legal, financial, tax, or investment advice. It should not be substituted for information from professionals authorized to practice in your area. You should always consult a suitably qualified professional regarding your specific situation.