The money conversation no one wants to have despite the inevitability

The old adage remains true today, that the only certainties in life are paying tax and death. But while most of us will speak about tax often throughout our lives, death is a topic most choose to avoid.

But just as tax planning is essential, so too is working out the financial impact of a death; not just estate planning but the immediate and often higher-than-expected cost of funerals and burials. And it’s a potential planning gap in advisors’ conversations with clients.

Eight in 10 people told a new survey that funerals and burials are too expensive, and a majority would consider alternative arrangements if it meant cutting costs significantly, according to 1,516 Americans polled by life insurance brokerage Choice Mutual.

The average funeral in 2026 is almost $10,000, with cremation averaging close to $7,000, according to the firm’s research. Despite those figures, only 36% of respondents say they have a life insurance or final expense policy in place to cover burial and funeral costs. Nearly one in five say their family will simply "figure it out" — a response that often translates to debt.

InvestmentNews recently spoke with Bennett Pardue, a financial advisor with Equitable Advisors, to learn more about the financial moves clients should make (and not make) after a major life event such as death of a spouse.

A growing comfort with death but not the planning

The survey reveals a shifting cultural attitude toward mortality. Fifty-seven percent of Americans believe people are becoming more comfortable discussing death and end-of-life preferences, and one in two say they personally feel more at ease with such conversations than they did in recent years. Gen Xers are the most comfortable generation when it comes to discussing their own death, at 43%.

However, this hasn't translated into financial preparation. While one in three Americans say they have had a serious conversation with someone about their own funeral preferences, and a similar share have discussed organ donation wishes, far fewer have put concrete financial plans in place. About one in four plans to use personal savings to cover funeral costs, while a significant portion have made no arrangements at all.

The shift toward alternative burials

Cost is reshaping how Americans think about burial altogether. Eighty percent say they would consider an alternative to a traditional funeral if it were significantly cheaper, and 73% cite environmental benefits as another motivating factor. Natural organic reduction — sometimes called human composting — is the most-preferred alternative, with 21% saying they would choose it if traditional burial were unavailable. Green burial (20%) and tree pod burial (18%) follow closely.

Cremation remains the most common preference overall, chosen by 48% of respondents in 2026 — the highest figure since Choice Mutual began conducting this annual survey. Of those who prefer cremation, nearly two in five would like their ashes scattered in a meaningful location, while about one in five would opt to have them returned to the earth through a memorial tree or similar arrangement.

The rise of eco-friendly burial options is beginning to intersect with values-based financial planning. Advisors who work with clients on sustainable and impact-aligned investment strategies may find that clients who prioritize environmental values in their portfolios hold similarly strong preferences when it comes to how their remains are handled and that this is an opening for a broader end-of-life planning conversation.

Digital memorials and the legacy economy

The survey also highlights growing interest in digital legacy tools. Fifty-eight percent of Americans say they would want loved ones to create a digital time capsule before death containing photos, videos, and personal messages, and 72% say it is important for future generations to access and learn about the lives of those who have passed.

That appetite for digital legacy is up sharply from 2025, when 39% of respondents said they would like a loved one to create a digital memorial. The jump to 58% in a single year suggests the idea is moving from novelty to expectation for many families.

Grief technology more broadly remains a contested space. While nearly one in four Americans say they would consider a virtual reality experience recreating shared memories with a loved one, 79% describe grief tech tools overall as "creepy." Hologram projections for memorials (20%) and voice cloning from past recordings (18%) found some openness, but AI-generated messages remain widely unpopular — a finding consistent with last year's data.

What this means for advisors

The Choice Mutual survey underscores a recurring theme in financial planning research on late-life costs Americans are underprepared for the financial reality of dying, and many are unaware of the full cost spectrum.

For advisors, weaving end-of-life cost planning into broader retirement income conversations including final expense coverage, estate liquidity, and digital asset considerations is no longer an edge case. It is part of a complete financial plan.

The data suggests clients are increasingly open to having these conversations. The question is whether their advisors will bring them up first.