Planning your funeral with some expert help

In my research for this three-part series on funerals, I came across a startling analysis by the watchdog group Funeral Consumers Alliance (FCA), a national consortium of consumer groups that educates the public about funerals.

Based on 2003 data from the Centers for Disease Control and Prevention, FCA estimates there are more than twice as many funeral homes operating than our nation's death rate warrants.

Here's the hypothesis: assume that every funeral home has one funeral a day, five days a week, with two weeks off for vacation. That equals 250 funerals a year per home.

Then compare this with each state's annual number of deaths. In New York, for example, there were 157,251 deaths in 2003, which would have required 629 funeral homes. Instead, New York has 1,850 funeral homes. Pennsylvania needs only 506 funeral homes but has 1,800. Tiny Vermont needs 20 but has 59. In Washington state, we need 179 but have 199.

It's a rough calculation — and maybe even off by half. But still, there's a discrepancy between supply and demand in this industry that doesn't make sense. How can so many funeral homes stay in business when they seem to be seriously underused? Economists call it "excess capacity."

Perhaps the answer is the hefty markups that are common among some industry members. Are some of us paying more than we should to keep providers afloat when they have no customers? This certainly isn't how most businesses work — McDonald's doesn't raise its prices when business is slow.

It's a symptom of why we need to do a better job as customers. How? It's easier than you think.

First, some basics about funerals. There are three kinds:

Full-service funerals. These are the most elaborate and expensive, with viewing or visitation and a formal funeral service, use of a hearse, the burial itself, entombment or cremation. They often include embalming, a casket, cemetery plot and other funeral goods and services.

Direct burial. This occurs shortly after death, without embalming. A memorial service may be held at the graveside or later. Costs include the funeral home's basic services, plus transportation and care of the body, a casket or burial container and a cemetery plot or crypt.

Direct cremation. Cremation occurs shortly after death, without embalming. A memorial service may be held then or later.

According to the Federal Trade Commission, which regulates the industry, most states don't require you to use a funeral home to plan and conduct a funeral. However, since most of us do, we need to be prepared.

The casket and fee for the basic services of the funeral director and staff are typically the most expensive items, according to the FTC. Prices for the same casket can vary by thousands of dollars. When you know the kind of service you want, get prices from at least three providers.

Funeral providers must give price information by phone and many will mail it to you. If you go in person, they must give you a written price list.

If there's a funeral consumer-education group in your area, contact it — many have arranged funeral discounts and a commitment to not use high-pressure sales tactics with their members, similar to Seattle's People's Memorial Association. Even without the discounts, most consumer groups have conducted price surveys that can tell you a great deal. Plus, these groups can give you information about what to look for that you won't find elsewhere. A directory of these groups is available by calling or going online to the FCA Web site.

If your area has no consumer group, the FCA Web site still gives helpful information.

What about paying for your funeral ahead of time? Beware, says the FTC. "Some states offer little or no effective protection" of how your money is handled, what happens if the firm goes out of business, whether you can transfer the funds if you move or die elsewhere, and other important safeguards.

The best idea, say all the experts I contacted, is to think about these issues ahead of time — for yourself as well as loved ones. Planning for your funeral "pre-need," advises the FTC, is considered by an increasing number of people as an extension of their wills and estate planning.

"The reality is," says John Eric Rolfstad, executive director of People's Memorial Association of Seattle, "all of us will be funeral consumers some day. One of the greatest gifts we can give our survivors is to do the homework in advance."

Most of us age accidentally, without planning or forethought. Aging Deliberately tells us how to age on purpose, with more control!

You can reach Liz Taylor at lizt@agingdeliberately.com or write to P.O. Box 11601, Bainbridge Island, WA 98110.