Lots of people are worried about how their family will pay for the cost of a funeral when the time comes. Nobody wants to add that stress to what is often already a very stressful time. So what are the options to ensure the funds for your funeral are available when they’re needed?
(If you need to pay for a funeral right now and are worried about the cost, please see our article ‘How to Get Help to Pay for a Funeral‘)
Step 1 – Do a budget
From the research we’ve done, the average funeral in Canberra costs around $10,500 or more through a traditional provider. Australian Seniors has created a funeral calculator which you can use (although please note there are limitations within their calculator which we think under-represents the cost in some areas).
However, funerals do not have to cost this much. The quality of a funeral comes down to the care and thought of the people involved with it and whether it was an authentic reflection of the person who died, not the price tag.
To work out what’s right for you, you need to ask some questions.
Would you like to be buried or cremated?
Most cemeteries and crematoria publish price lists, like this one from Canberra Memorial Parks.
Do you want a funeral director?
A funeral director can do as much or as little as you require them to do. If your family wants to care for you at home after you die and is able to transport you safely, you may not need a funeral director at all (although we would strongly recommend you contact us for advice on how to successfully achieve a DIY funeral). You can ask any funeral director about their pricing in detail without committing to using them and you can ask for written quotes.
What sort of coffin or container would you like?
Our post on How to Choose a Coffin may help.
Do you want a service, or something simpler?
Many providers only offer the choice of a direct cremation (where you spend no time with your person and hold no ceremony) or a full service (what we think of as a ‘traditional’ funeral). At Tender, we offer a third option.
If you don’t want a full service, but would still like to spend time with your person, or have a smaller, informal gathering, or even just decorate a coffin, then we give you the option to do those personal things as part of a direct cremation. This can be a great way to create something meaningful without all the logistics and trappings of a full service.
If you would like a full service, think about the options that would make it meaningful for you. For example, if you’d like it in a house of worship, your local faith leader will be able to help you with costs. Secular chapels are also available for hire, and don’t forget your home or a park can also be options. Will you have a professional celebrant, or a family member? Music? All these service providers will have price lists available. We can, of course, talk to you about the options available and what the likely costs would be.
Do you want a wake?
Some people even combine the ceremony and wake into one celebration at their venue of choice. Perhaps you have a favourite club you’d like everyone to come to. Think about whether you’d like everyone to bring something to share or if you’d like to provide any food or drink.
Do you want ‘extras’?
Newspaper notices, thank you cards, hire cars, flowers, catering, embalming, viewings… the list of things you might be offered is long! But nothing is mandatory, and often there are ways to do this yourself or enlist family and friends to help. Or maybe your idea of the perfect funeral is free-flowing food and drinks for hours that professionals provide and clean up after! It’s up to you.
Step 2 – Secure your funds
There are many companies that offer either funeral insurance or pre-paid funerals. However, at Tender, we believe the best option is to set up a funeral bond in your name. We cover the financial aspect of this below, but if you’re interested in how Tender can support you to pre-plan your funeral, please see our Preplanning A Funeral flyer.
Other Pre-Paid Options
There are other options you may have heard of for pre-paid options, but it’s worth being aware of some of the challenges you may face with them.
- Funeral insurance is usually set up as a regular payment that guarantees you a set amount. However, it can often cost more than you receive in benefits, as these articles from Moneysmart and Choice explain.
- Pre-paid funerals are where you purchase your funeral in advance from a funeral director. These can be provided in a couple of ways; sometimes the provider will manage their own fund, or sometimes they will hold a funeral bond in the name of the funeral home on your behalf. If they are managing the fund themselves, you need to be aware of whether your funds are secured in the case of the business failing or being sold. You should ask the following questions of any pre-paid provider:
- Are my funds secure in the event your business fails or is sold?
- What is the process if I want to change funeral providers, and what costs are involved?
- What is the process if I change my mind as to what I want for my funeral, and what costs might be involved?
- What if the amount I’ve paid is more than I require for my final funeral? What happens to any excess funds?
Pre-paid plots
If you’re sure you know where you want your body or ashes to be interred, or if you want to ensure that more than one person can be interred in the same family plot, pre-purchasing a burial or internment plot may be a good option to spread the cost out over time. But do make sure your family knows which memorial park you’ve arranged this with!
Superannuation or Life Insurance plans often have a facility to make a payment in the event of a funeral, so make sure you know what you’re already covered for.
Step 3 – Share your plan with your family or friends
It’s no good having a fund ready to go and a list of what to spend it on if you haven’t told the people who will need to carry out your plans for you after your death! Communication is key. If you’re not comfortable sharing everything up front, you can always let them know that you’ve made a plan, and where it is – “In the event of my death, there’s an envelope in the top drawer” kind of thing. That way, they’ll be able to find everything they need when the time comes.
At the end of the day, whether you’ve arranged for a portion of the costs or to cover everything, thinking about your funeral and planning for it is a wonderful gift to your family or friends.
Key takeaways:
- Identifying a budget gives you confidence in your savings goal
- Savings accounts are often better than specific funeral plans or insurance
- Share your plans with the people who will carry them out for you!
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