an $18 Million Funeral Bill Isn't Just Another Story
grief comes out of nowhere, and it's even more devastating
not long ago, I learned that a close friend's father had passed away, and I rushed to the funeral home within a month. i stayed up all night for three days with my grieving friend. i watched my friend greet the mourners and navigate the complexities of the process, and I wanted to help.
after a hectic day of funeral arrangements, my friend grabbed me for a moment and said in an exhausted voice, "I got the bill from the funeral home... and it's really blinding." The bill she showed me had the number "17.8 million won" stamped on it. The grief of a sudden loss is hard enough to deal with, but the reality of a funeral costing tens of millions of won was weighing down on the family.
this is not just my friend's story; as of this year, the average funeral cost in South Korea is around 18 million won. in 2015, the average was 15 million won, so that's an increase of 3 million won in just 10 years. It's a reality we can't take lightly, and one that we could all face at some point.
why are funerals so expensive? (Detailed estimate analysis)
so where and how does that $18 million dollar bill come from? the cost of a funeral is comprised of the following items
funeral home facility fees (approximately $300 to $800): this is the cost of renting the facilities for three days, including a viewing room, morgue, and salt chamber. The price varies greatly depending on the size and location of the hospital or funeral home.
food and hospitality costs (approximately $200 to $500+): this is the most variable item, depending on the number of mourners. even at an average of 2 to 3 thousand won per person, a funeral with only 200 mourners can cost well over 4 million won.
funeral supplies (around 1 million to 5 million KRW): this is the cost of the shroud, coffin, urn, etc. for the deceased. the price varies depending on the material and type, and it is important to be careful as there are many companies that recommend expensive products to bereaved families.
labor services and other costs (approximately $150 to $500): from funeral directors, assistants, and transportation costs, to headshots and altar flowers, there can be unexpected additional expenses.
burial site costs (several hundred to several thousand): this is the cost of enshrinement or burial in a mausoleum after cremation, which is another large expense on its own.
the problem is that all of these costs are steadily rising at a rate of 3-5% per year. calculations show that 10 or 20 years from now, the cost of a funeral could easily exceed 20 million won and approach 30 million won. There is one surefire way to prepare for these steeply rising costs: funeral services.
'Preplanning' for the future, but it can be a poison pill
the promise of monthly payments: how to beat inflation
a prearranged funeral is "a service that allows you to pay for a future funeral at today's prices. for example, if you signed up for an annuity in 2015, you'll still get all the services at the price you agreed to in 2015, even if you're buried in 2025. that's a savings of $3 million in 2025 dollars, and a lot more in the future.
this is why so many people continue to pay for funeral services month after month. it's a solid "hedge" against rising inflation. But behind this sweet promise, there are deadly dangers that consumers should be aware of.
funeral home betrayal: Penalties, surcharges, and the risk of going out of business
many consumers have been victimized financially and emotionally by funeral services. there are three main types of complaints we receive from consumers.
1.excessive termination penalty This is the most common type of damage. monthly payment plans, which usually cost 30,000 to 50,000 won per month for 10 years or more, charge exorbitant penalties if you change your mind or have financial difficulties and want to cancel. it's not uncommon to only get back 80-85% of the principal you paid, and in some cases, you may be denied any refund at all, creating a "I paid for this, but I can't get out at will" shackle.
2. the "freebie" trap and on-site surcharges "Sign up for a new TV and you'll get a brand-new TV!" You sign up, only to find out that the TV is not a freebie, but a separate installment contract. it's also not uncommon for funeral directors to try to sneak in additional payments by saying "you need more than the number you signed up for" and end up spending much more than you expected.
3. theworst-case scenario is that the company goes out of business The worst thing that can happen is that you've been paying into a company for over a decade, only to find out that it's gone out of business when you need it most. sure, you may be able to get 50% of your money back through a consumer redress scheme like Find My Money, but you're left with the other 50%, the time you've spent with them, and the embarrassment of being caught off guard.
no risk, no reward: the new alternative, Goi 100 Won Sangjo
so, is there a way to plan for inflation, but without the burden of monthly payments, surrender penalties, or the risk of going out of business? there is. it's called Goi 100 WonFuneral, a new way to combine all the benefits of traditional funeral arrangements with none of the drawbacks.
amazing benefits for $100 per month
as the name suggests, Goi 100 won funeral services cost just 100 won per month. Believe it or not, that's all it takes to get all of the following key benefits
low price at the time of signup, guaranteed for life: Sign up now and you'll get all your funeral services at the price you're paying today, no matter how much prices increase in 10 or 20 years.
zero monthly payments: no need to shell out tens of thousands of dollars every month - for as little as $100 per month, less than the cost of a cup of coffee, you can secure your future.
zero cancelation penalties: you can cancel whenever you want, without any penalties or penalties.
zero risk of going out of business: with no money up front, you have nothing to lose if the company goes out of business - completely eliminating financial risk.
[Related article: Pre-paid funerals, can you really trust them? (A complete breakdown of the pros and cons)] [Related article: 3 things to consider when choosing a funeral home]
how is this possible?
the innovation of Goi 100 Won Funeral Service lies in the 'conceptual shift'. whereas traditional funeral services are "selling funeral goods in advance in installments," Goi 100 Won Funeral Service is "subscribing to the right to use future funeral services at current prices for 100 won per month.
in other words, the cost of the service itself follows the safe practice of pay-as-you-gofuneral arrangements, where you only pay once when the funeral actually occurs. this is combined with one of the biggest benefits of prepaidfuneral planning- a 'price freeze' - at a minimal cost of $100 per month.
this is possible because we've cut out all the bubbles like unnecessary advertising costs and sales commissions. consumers no longer have to take any risks, and can smartly plan for one of their biggest future worries - funeral expenses - at the most affordable cost.
most frequently asked questions (FAQs) before signing up for a funeral plan
bottom line: Protect your loved ones with smart planning
preparing for future funeral expenses is no longer a choice, it's a necessity. but that preparation shouldn't be another layer of worry and risk.
goi 100 Yuan Funeral is the smartest way to get the wisdom of locking in future funeral costs at today's prices, but without the shackles of monthly payments, surrender penalties, and the risk of going out of business.
in a moment of unexpected separation, helping surviving family members focus solely on memorializing without worrying about money is perhaps the greatest favor we can give our loved ones.