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E.  Avoiding Uneccessary Funeral Costs and Rip-offs

The cost of an average funeral can easily exceed $4,000. To find out where you can obtain a low-cost funeral in your community, call a memorial society. Most societies provide nonmembers with information about the types of services available and comparative costs. Look under "Memorial Society" or "Funeral Society' in the Yellow Pages. If there is no such society in your community, one in a nearby city may know of undertakers in your area who provide low- or reasonable-cost funerals. You can also speak to clergy at a church or synagogue for recommendations. Finally, some labor union committees, consumer groups, civic organizations, and fraternal societies can be helpful. It is best to make as many arrangements as possible before the need arises.

Recognize the low-cost alternatives to a conventional funeral. Substantial costs can be saved through cremation, direct burial, and organ donation. Many crematories charge only several hundred dollars to cremate a body. Direct burial through commercial businesses can also offer substantial savings. Some alternatives to conventional funerals may even be covered by the social security death benefit available to most Americans.

Until recently, few federal and state laws existed to protect consumers from being victimized by unscrupulous operators. Most funeral establishments had no set methods of pricing, and many consumers emotionally unprepared for the death of a loved one could not protect themselves as well as an educated consumer in this area. A host of abuses resulted, especially when funeral establishments regularly lumped all services into one price and consumers paid for unnecessary or unwarranted items.

To combat many abuses in the industry, the Federal Trade Commission enacted legislation to protect consumers from unfair and deceptive practices. Generally, the FTC's Funeral Rule requires that funeral providers nationwide give consumers a written, itemized list that contains the prices of funeral goods and services. This list must be offered at the beginning of any discussion of funeral arrangements in person and even over the telephone to those consumers who request information about the terms, conditions, and prices at which funeral goods and services are offered by that funeral home.

The following are some of the services for which you should request itemization:

• professional staff services
• embalming
• cosmetology
• general use of facilities
• use of facilities for funeral services initial transfer of deceased to funeral home hearse
• acknowledgment cards
• visitor register
• coffin
• cemetery plot
• The rule also requires that funeral providers:

1. obtain express permission from a family member or representative before charging a fee for embalming, except under special circumstances
2. not require consumers to purchase a casket for use in a direct cremation service
3. offer an alternative to a traditional casket
4. not misrepresent legal requirements for burial or cremation (such as erroneous but expensive and unnecessary state and local laws about embalming, caskets for cremation, cemetery, and other regulations)
5. not misrepresent the existence of markups on cash advance items (i.e., that items such as flowers are sold to customers at cost when this is not true)

Certain unfair practices are also prohibited, such as conditioning the purchase of any funeral good or service on the purchase of any other funeral good or service.

Since a few states have enacted laws even tougher than the FTC funeral rule, a funeral provider in your state is required to honor either your state's law or the FTC funeral rule, whichever law is stronger. Be aware that funeral providers are defined as any person, partnership, or corporation that sells or offers to sell funeral goods (e.g., all products sold to the public for use in connection with funeral services) and funeral services (e.g., those services used to care for and prepare human bodies for burial or other disposition and those services used to arrange, supervise, or conduct the funeral or disposition, such as a cemetery that also operates a funeral home). The rule's coverage extends to funeral providers who sell pre-need contracts for goods and services.

Other areas of protection require that a funeral provider not tell a consumer that embalming is required when the consumer wishes immediate burial, when the remains are placed in a sealed casket, or when refrigeration is available. A general price list for all storage containers must be provided. Additionally, the family should be told that certain price items apply for direct cremations but that other fees are required for cremations that occur after a viewing.

To avoid problems, never agree on a service when the price for that item appears high. Never pay for extra goods or services (such as burial clothing, flowers, etc.) that were not discussed with you and that you did not agree to pay for before the funeral.

In many states, funeral homes are licensed by the health department. In other states, the department of consumer affairs is responsible for investigating matters under dispute and conducting formal hearings. Both agencies often attempt to resolve complaints informally. However, if attempts at settling your complaint are unsuccessful, fines can be imposed and licenses suspended or revoked for blatant violations.

Given the broad powers of the Federal Trade Commission, always advise the funeral provider in a registered letter that you will be contacting the regional office of the Federal Trade Commission's Investigation Division by filing a complaint and requesting an investigation in the event the matter is not immediately resolved to your satisfaction. Most funeral providers are reluctant to tangle with the FTC and "open their books" during an investigation, so your problem may be amicably resolved.

If you do not receive immediate satisfaction, contact the nearest FTC regional office by telephone and speak to an investigator. Follow this up by sending a letter of protest (certified mail, return receipt requested) to document your problem and seek redress.

If you are the victim of misrepresentation or other fraud, you can also sue the funeral director and establishment in small claims court when the amount in dispute is typically less than $2,500. Of course, 3>you should consider hiring a lawyer to pursue your rights if the amount is larger.

The following are some of the benefits that may be available to survivors upon application:

• employment benefits-severance pay, accrued vacation, golden parachute and golden coffin benefits, stock options and appreciation rights, insurance death benefits, pension and profit-sharing distributions
• social security and Veterans Administration benefits
• worker's compensation insurance benefits, credit union, trade union, and fraternal organization benefits
• federal, state, and local government survivors' benefits
• no-fault automobile insurance benefits to cover funeral and burial expenses for someone killed in an auto accident
• Federal Railroad Retirement Board benefits for railroad employees