Planning your funeral

Dealing with the death of a loved one is hard. But when it’s the passing of a parent or grandparent, someone you’ve looked up to for most of your life, it can be particularly hard. They have a lifetime of stories, life experience, and share a lifetime of memories with you.

When they pass away it can be a difficult thing to come to terms with, causing us to reflect on our time with them, and where we are in our own lives. This emotional time can be made more stressful when having to organise a funeral and the financial arrangements that go with it.

For your own family you can take away some of this stress at this emotional time by organising your funeral ahead of the time of your death. This will ease the pain and allow your children and grandchildren to grieve and give you the farewell that you deserve.

Ways to Pay for Your Funeral

Two options to pay for your own funeral are a Pre-paid Funeral or Final Expenses Insurance. Pre-paid funerals allow you to choose what you would like at your funeral and Final Expenses Insurance gives your family the funds to choose for you.

Benefits of a Pre-paid Funeral

A pre-paid funeral is paid by you in advance, and you can choose the type and style of funeral that you want. The benefit of this is that you can pay for the funeral at today’s price rather than what it might be in the future. The payment of a funeral is registered with an independent funeral fund. However you will need to have the money up front to pay for a pre-paid funeral.

The benefits of a pre-paid funeral include:

  • Saves your family from making decisions at a difficult time
  • Takes away the financial burden of organising a funeral
  • It will be cheaper to pay for funeral arrangements, as the price will be fixed at the rate of today.
  • You can choose exactly how you’d like your funeral to be.
  • The funeral payments should be made to a board independent of the funeral director, which means it is secure in the instance that your chosen director goes out of business.
  • Pre-paid funerals are exempt from assets tests for Centrelink, meaning you can still maximise any pension payment you might receive.

Benefits of Final Expenses Insurance

Final Expenses Insurance or Funeral insurance is a policy you can take out now, that will be paid out to your family in the event of your death. Your beneficiaries will be paid a nominated amount that they can use to pay for your funeral or any other final expenses such as credit card debts, bills etc.

The benefits of final expenses insurance include:

  • A cash payout to your family after death has been certified. In the case of accidental death, your family may receive triple the benefit amount.
  • Takes away the financial hardship that planning a funeral can have on your family at an emotional time.
  • You can choose the amount that will be paid out in the event of your death, with this amount being paid no matter when you pass away (between $5,000 to $15,000).
  • Simple to organise, without any medical or blood tests required.
  • Peace of mind, that your family will get the chance to give you a proper farewell.
  • To help with budgeting, you can also choose to fix your premium rate. This means your premium will only increase if you decide to increase your benefit amount.

If you hold your Policy for an extended period of time you may pay more in premiums than the Benefit Amount, depending on the circumstances. If your Policy is cancelled and cover ends, no Benefit Amount is payable and there are no premium refunds after the cooling off period. Cover for Accidental Death is only in the first 12 months, then death by any cause thereafter.

If you are thinking about a funeral option that will look after your family, Final Expenses Insurance or Funeral Insurance can provide a financial solution. It’s easy to apply for free quotes and to compare policies with Choosi. Choosi also have a range of extra information about Funeral Insurance to help you make a decision that will suit you and your family’s needs.

This is general information and does not take account of your financial situation.

  1. Australian Funeral Directors Association
  2. Contributory and pre-paid funerals, NSW Fair Trading

These articles are provided as reference material to allow more informed decision making, but are not intended as being a complete source of information on any topic. All readers should make their own independent analysis on the topic to make sure they have considered the aspects that are important to them.