 TITLE: How to Pay for a Funeral CONTENT: You may not be emotionally equipped to focus on finances when you're planning a funeral for a loved one or friend, but you can take comfort in the fact that there are a number of ways to keep costs in check. Here are some of those ways.\n### Compare Costs at Funeral Homes\nYou might be able to save several thousand dollars if you shop around among local funeral homes, the Funeral Consumers Alliance says. The Federal Trade Commission (FTC) recommends checking prices at two or more funeral homes, which you can do online or by calling the funeral homes you're considering. Funeralocity.com lets you compare pricing at funeral homes and cremation providers.\nFuneral providers are required by law to provide you a list of prices for goods and services. If the company doesn't know precisely how much a certain item will cost, they must give you a written \"good-faith estimate.\" The FTC notes that you may be able to save money by supplying a casket or urn on your own rather than buying it from a funeral home.\n### Make Economical Choices\nOptions to help reduce the cost of a funeral include:\n*   **Direct cremation:** This involves cremation without embalming, viewing or visitation. The price for this service could be as low as $800.\n*   **Direct burial:** This approach eliminates the need for embalming, viewing or visitation and could save several thousands of dollars.\n*   **Home funeral:** In all but nine states, you can carry out the entire funeral at home. This option involves minimal costs.\n### Work Out a Payment Plan\nTypically, a funeral home wants all goods and services to be paid upfront. However, you may be able to negotiate a plan to pay off part of the bill over time. Beware of taking out a loan or using a credit card to cover funeral expenses, as this may add to your debt.\n### Save Money in Advance\nIf you want to spare your family the cost of arranging your funeral, consider setting aside even a small amount each month toward expenses for your own funeral.\n### Open a Payable-Upon-Death Account\nA payable-upon-death account at a bank ensures the money you save for your funeral will be released right after your death to whomever you designate as your beneficiaries. You can take your money out of one of these FDIC-insured accounts at any time.\n### Purchase a Life Insurance Policy\nA life insurance policy pays a lump-sum amount to your beneficiaries after you die. At least some of this money could be spent on your funeral.\n### Establish a Prepayment Plan\nUnder a prepayment plan, the funeral home deposits your money into an interest-bearing account or insurance policy. Following your death, the money goes directly to the funeral home. Generally, the Funeral Consumers Alliance recommends against prepaying for a funeral. In part, that's because your survivors may be unaware of the prepayment plan and thus unable to take advantage of it, and because some states lack strict laws governing these plans. END