The true cost of death: Beyond dollars and cents
Death’s impact goes beyond grief – financial strain, family conflict, and planning gaps make preparation essential for easing the burden.
Updated 
4 min. read
Death is an inevitable part of life, yet its impact is often underestimated until it arrives. While grief is the most visible consequence, the true cost of death spans far beyond emotions – it touches finances, family dynamics and the risks of poor planning. Only 46% of Canadian adults have general knowledge about estate plans. footnote 1 Understanding these dimensions can help individuals and families prepare more thoughtfully, reducing the burden during one of life’s most difficult moments.
The monetary cost of death can be staggering and financial pressures often arrive at a time when families are least equipped to handle them. Funeral expenses alone can range from $1,000 to $20,000 in Canada, footnote 2 depending on choices like burial versus cremation, the type of service, and location. Burial plots, caskets and memorials add to the expense, and many families are surprised by the hidden costs – travel, time off work, and even grief counseling. Beyond the funeral, settling an estate involves legal fees, probate costs, footnote 3 and executor compensation. If the deceased was a primary income earner, the financial loss can be long-lasting, especially if life insurance coverage is inadequate or nonexistent. According to a survey conducted by seniorschoice.ca, 46% of respondents said they wouldn’t be able to meet the costs associated with a family bereavement. footnote 4
Emotionally, the cost of death is profound and deeply personal. Grief can manifest in many ways – sadness, anxiety, depression and even physical illness. The emotional toll is compounded when families face conflict over wills, funeral arrangements or inheritance. Unclear wishes or lack of communication can fracture relationships, leaving lasting scars. For caregivers, the emotional exhaustion from months or years of support can linger long after death, often without the recognition or support they need to heal.
Planning risks and the consequences of inaction can make a difficult situation even harder. People who die without a will or power of attorney could be leaving their families to navigate legal complexities and make decisions without guidance. Only 50% understand how power of attorney works footnote 1 and just 47% grasp the role of a will. footnote 1 This can lead to delays, stress and outcomes that may not reflect the deceased’s intentions. Insurance gaps are another common issue – whether it’s insufficient life insurance, no final expense coverage, or overlooked long-term care needs.
Despite these challenges, the costs of death can be mitigated with proactive planning and open communication. Financial tools like life insurance, estate planning and funeral pre-arrangements can ease the monetary burden. Talking openly with loved ones about end-of-life wishes helps prevent conflict and ensures that values and traditions are respected. Professional support – from financial advisors to grief counselors – can guide families through the process, offering clarity and comfort when it’s needed most. Preparing for death may feel uncomfortable, but it’s ultimately an act of love – one that helps protect those we care about from unnecessary hardship.
At BMO Insurance, we understand that the cost of death is more than financial – it’s emotional, logistical and deeply personal. That’s why our life insurance and guaranteed investment fund solutions are designed not only to help provide financial protection for loved ones, but also to support families through the complexities that follow a loss. Through our partnership with Empathy, families gain access to compassionate, practical support for estate settlement, grief management and navigating the many tasks that arise after a death.
“Supporting our clients means being there for them not only in moments of financial decision-making, but also during some of life’s most challenging times,” says Rohit Thomas, President and CEO, BMO Insurance. “Through our collaboration with Empathy, we’re extending our care beyond financial services, offering on-going meaningful support when it’s needed most.”
Together, BMO Insurance and Empathy offer a holistic approach to end-of-life planning – helping our clients prepare with confidence and care, so that when the time comes, their families are supported. Don’t wait for uncertainty to define your family’s future. Connect with your advisor to explore how estate planning, insurance protection and compassionate support from Empathy can help you safeguard what matters most.
Footnote 1 details https://www.wealthprofessional.ca/news/industry-news/canadians-lack-estate-planning-knowledge-study-finds/386014
Footnote 2 details https://www.willful.co/learn/funeral-insurance-in-canada
Footnote 3 details Probate costs vary by province and are not applicable in Manitoba and Quebec.
Footnote 4 details https://www.seniorschoice.ca/funeral-costs/
Disclaimer
The Empathy services, mobile and online apps and beneficiary care program(s) described in this publication are offered by The Empathy Project Inc. Empathy’s bereavement services and platform are provided through an agreement with The Empathy Project, Inc., (doing business as Empathy). Empathy is not an affiliate of BMO Insurance, and the services Empathy provides are separate and apart from the insurance provided by BMO Insurance
These comments are general in nature and should not be construed to be legal or tax advice, as each client‘s situation is different. Please consult your own legal and tax advisor.
Please consult the appropriate policy contract for details on the terms, conditions, benefits, guarantees, exclusions, and limitations. The actual policy issued governs. Each policyholder’s financial circumstances are unique, and they must obtain and rely upon independent tax, accounting, legal and other advice concerning the structure of their insurance, as they deem appropriate for their particular circumstances. BMO Life Assurance Company does not provide any such advice to the policyholder or to the insurance advisor.
Insurer: BMO Life Assurance Company
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