Survivor Financial Plans: Creating Your “What-If” Budget
Editor’s Note: This post was originally published on October 25, 2022. It was updated in September 2025 to reflect current funeral costs and planning strategies.
Death is expensive. In 2023, the National Funeral Directors Association reported that the median cost of a burial funeral was $8,300, while cremation averaged $6,280. With inflation and new tariffs, those numbers are even higher today.
And funeral costs are only the beginning. Families often face:
Loss of the deceased’s income
Loss of employer-provided insurance
Paying for services once provided at home (childcare, meals, yardwork, etc.)
Attorney fees for settling the estate
Counseling and grief support
All of these expenses—and the unexpected ones—make a “what-if” financial plan essential. Without one, many surviving families are forced to move or make drastic lifestyle changes just to stay afloat.
HOW TO BUILD A SURVIVOR FINANCIAL PLAN
Here’s a simple exercise to prepare your family. If you have a spouse or partner, run the numbers twice—once assuming you pass first, and once assuming they do. You’ll quickly see how income, insurance, and services shift depending on who survives.
Step 1: List Expenses
When creating your survivor budget, be thorough. It’s okay to include dreams and personal goals—you can always scale back later. Think about how life would change without your partner, and build those details into the plan.
Four categories to include:
Immediate Expenses – funeral or cremation, memorial service, medical bills, grief support.
Annual Living Expenses – housing, food, transportation, utilities, childcare, vacations, taxes. (Consider whether the survivor might take time off work to grieve—factor that in.)
Savings & Investments – emergency fund, retirement, new estate planning needs.
Milestones & Dreams – weddings, graduations, religious milestones, or personal goals (like moving closer to family or traveling).
Step 2: List Income Sources
Next, write down every savings and income stream available to the survivor. Keep liquidity in mind—not all assets are easy to access. For example, using home equity often means taking on debt or moving, which may not be ideal for a grieving family.
Common sources include:
Life insurance payouts
Savings and checking accounts
Investments
Future earnings of the survivor
Social Security survivor benefits
Home equity (if accessible)
Step 3: Compare the Columns
Now compare your total expenses with your total income. If expenses are higher, you have two options:
Reduce or eliminate items from your expense list, or
Find ways to add to the income column.
Why This Matters
This exercise can be eye-opening—and sometimes emotional. Remember, there’s no right or wrong way to grieve or plan. What matters most is creating a roadmap that helps your loved ones stay financially secure and emotionally supported when the unexpected happens.
💡 Pro Tip: Ask funeral homes for their General Price List—it’s your legal right and helps you plan with real numbers.
👉 Ready to take the next step? Download our free Family Manual or First Two Weeks Guide to organize your plan today.
Best regards,
Corey
