The True Cost of Dying

The True Financial and Emotional Cost of Dying

Author: Cole Sorensen

Posted Date: March 18, 2025

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Through our deep experience in the hospice industry, we at MHA have a unique perspective on the end-of-life process and its hidden nuances. Dying is not only mentally, emotionally, and physically challenging for all involved, but can also add financial stress for family members. Between hospital stays, in-home care, hospice care, and numerous other needs along the way, the financial burdens of death add up—making one of life’s most difficult times even more challenging.

That’s why it’s important for all involved to understand the true cost of dying in the United States. Whether you’re a family member navigating a loved one’s death or a hospice care provider looking for ways to offer greater support to patients through the end-of-life process, understanding the potential costs facing grieving families is one of the best ways to prepare for some of life’s most difficult moments.

The Financial Impact of Dying

In the event of death, the financial impacts on those involved can be burdensome. In a study conducted by the University of Pennsylvania, the average cost for the last month of a person’s life in a hospital can amount to $32,379, while hospice care averaged $17,845 per month for patients.¹ However, these averages do vary based on geographic location, where patients receive care, and by which healthcare provider.⁶

Unfortunately, these costs do not account for post-death expenses, such as decisions between cremation or traditional funeral services with a burial. On average in the United States, a funeral service with burial costs amounts to roughly $8,500, while cremations average to about $7,500, according to the National Funeral Directors Association.⁵ Again, these averages do vary by state.⁶

Aside from the funeral or cremation costs, other fees can also come into play—including legal expenses, personal financial matters, and more. Financial matters such as accounting fees and payment of personal bills cost an average of $4,384 in the United States.⁴ Other legal fees and costs (such as the hiring of lawyers and selling off assets) averaged to about $5,000.⁴ Disposal of the deceased’s real estate can add another $4,000 on average.⁴

Ultimately the cost of dying in the United States, along with post-death expenses, create heavy financial burdens and additional stress on grieving families and loved ones— with the national average amounting to about $20,000.⁴

The Emotional Cost of Dying

Financial costs aside, death brings physical, emotional, and mental stress for loved ones. This emotional period is referred to as bereavement, which is the state of having experienced the loss of a loved one.² Bereavement is mainly characterized by stress, mourning, and grief. In a study conducted by Empathy, about 95% of respondents reported at least one negative physical or mental symptom after experiencing the loss of a loved one, and 84% said that the symptoms they were experiencing had a harmful effect on their daily lives.³

Loss will inevitably affect those in relation to the deceased, but the exact impact on individuals is difficult to predict. For example, grieving can lead to negative performance and struggles with concentration at work for some. According to the same study by Empathy, 20% of the respondents said that they had trouble concentrating at work for a period of 10 months after experiencing their loss.³

Because of these emotional implications following the death of a loved one, hospice bereavement support can be a critical tool for grieving families. Defined as the formalized support, counseling, and resources for grieving parties both before and after the passing of a loved one, hospice bereavement enables grieving individuals to heal in healthy ways. Hospice agencies are required to provide bereavement care as part of Medicare Hospice Conditions of Participation. This requirement is designed to share timely resources and assistance to grieving individuals impacted by hospice care.

Hospice bereavement support is not simply a government requirement for healthcare agencies, but rather empowers providers to offer emotional support, facilitate healthy coping mechanisms, and foster a sense of community and understanding for those going through the grieving journey.

Planning for End-of-Life Care

Because the cost of dying in the United States encompasses a range of expenses that can place a significant financial and emotional strain on individuals and families, planning for death is a crucial way to help reduce burdens on all involved.

While death is a difficult subject to think about—let alone plan for—the fact remains that death is an inevitable part of life. Proactive planning and engagement in discussions about end-of-life wishes can help mitigate some of those financial burdens on all parties when the event arises.

Begin by exploring potential insurance options, building up a safety net with financial savings, and review (or start) an advance care directive. Additionally, ensure you have a solid understanding of the benefits and limitations of programs such as Medicare and Medicaid, as they may or may not cover desired services. If you opt for in-home or hospice care, most organizations offer resources to help guide you through the process—don’t be afraid to reach out to your provider for guidance.

By staying informed and planning ahead, you can avoid undue financial hardship while ensuring end-of-life wishes are appropriately honored for the deceased individual. Furthermore, exploring and utilizing bereavement services allows families and loved ones to better manage their grief and ensure they have the necessary support systems in place.

Transforming Bereavement Care with nanaBEREAVEMENT

The hospice bereavement period is an essential time during which grieving families heal and learn to effectively manage the emotional toll of loss. MHA is committed to equipping hospice organizations with the best tools and strategies to support patients and their loved ones throughout their end-of-life care journey.

That’s why we developed nanaBEREAVEMENT—a CHAP Verified, tech-enabled solution that provides a personalized and efficient approach to bereavement communication. Hospice bereavement support traditionally relied on direct mail such as letters or post-cards to provide critical bereavement resources and other information. nanaBEREAVEMENT modernizes and streamlines the bereavement communication process through customizable, timely text messages that eliminate bottlenecks and expenses associated with paper mailings—ultimately ensuring that hospices deliver compassionate bereavement support to families when they need it most.

Discover more about this transformative approach to bereavement solutions in our webinar, or visit us at www.maxwellhca.com today. Streamline your organization’s bereavement process— reach out to [email protected] to schedule your demo today.

This blog was originally published as "The Cost of Dying: End-of-Life Care to Funeral" by Harper Dion on 03/28/2023. The MHA team has since updated this article to ensure accuracy and relevance.

^Resources

^{Bondareff, Joan. "The Cost of Dying in the U.S." February 14, 2025. The Cost of Dying in the U.S.}
^{Cherry, K., “Understanding Bereavement After a Loss.” September 1, 2024. https://www.verywellmind.com/bereavement-definition-symptoms-causes-traits-treatment-5197038}
^{Empathy. 2024. Cost of Dying Report 2024. February 14, 2025. Cost of Dying Report 2024 | Empathy.}
^{Forbes. "Dying Can Cost Loved Ones $20,000 Before Lost Wages And Worse Health, New Report Says." February 14, 2025. Dying Can Cost Loved Ones $20,000 Before Lost Wages And Worse Health, New Report Says.}
^{National Funeral Directors Association. 2022. Cremation and Burial Report. PDF. https://californiahealthline.org/wp-content/uploads/sites/3/2022/09/2022_Cremation-and-Burial-Report.pdf}
^{Self Financial. "Cost of Dying Report: Funeral & Cremation Fees." February 14, 2025. Self. Cost of Dying Report | Funeral & Cremation Fees | Self}

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