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Are you wondering whether to organise a pre-paid funeral or take up funeral insurance?
We know that it can be a very confusing decision to make. And funerals can be very expensive.
The average Australian funeral costs $7,075.* For a cremation, you’ll spend around $6,000 to $10,000, whereas for burials, you’re looking at approximately $9,000 to $25,000. Read more about the cost of a funeral here.
While some of these figures are quite substantial when thinking about paying them upfront, you can actually find yourself worse off if you make fortnightly or monthly payments to funeral insurance over a long period of time for various reasons.
We usually tell our clients that it’s better to opt for a pre-paid funeral (where you can choose to pay everything upfront or via a payment plan) so that you’re completely covered. Otherwise, you may find yourself paying more than what a funeral is worth over time or potentially lose all of your money invested in funeral insurance if something happens and you’re unable to continue paying your premiums.
However, to give you the full picture, let’s look at the pros and cons for both pre-paid funerals and funeral insurance.
A pre-paid funeral refers to the process of planning and purchasing your funeral in advance. The pricing can vary according to your funeral preferences, so we recommend that you compare prepaid plans among different providers.
Funeral insurance is a policy that allows you to make fortnightly or monthly ongoing premium payments towards your funeral expenses, which is then paid to your loved ones when you pass away. The policy can provide your cover between $5,000 to $30,000 (with increments of $1,000).
Unfortunately, we’ve had clients who have found themselves in the position of the last point. For one woman, her brother had been paying funeral insurance for several years, but let it lapse a year or two before he died. As a result, the family received nothing from the funeral insurance.
It’s one of the reasons why we believe it is a much more secure investment to go with a pre-paid funeral. If paying for everything upfront is out of your budget, then you can arrange a payment plan with your funeral director. Either way, your finances will be a lot more secure as nobody knows what the future holds.
If you have any other questions about pre-paid funerals and funeral insurances, we’d be happy to have a conversation with you. Contact us today.
Ian J Arthur Funerals (Funeral Directors In Hills and Sydney)
Phone : 1800 45 44 22
Address : Unit 37 / 9 Hoyle Avenue, Castle Hill, NSW 2154
Post : P.O.Box 305, Windsor NSW 2756
Phone : 1800 20 21 10
Address : Suite 6, 712-714 New South Head Road, Rose Bay NSW 2029
Phone : 1800 20 21 10
Address : Level 57, MLC Centre, 19-29 Martin Place, Sydney NSW 2000