How much does a funeral cost and what happens if you can’t afford it?
Benjamin Franklin once said, “In this world nothing can said to be certain, except death and taxes.”
Yet despite knowing the inevitable, hundreds of people fail to put plans in place to prevent their family trying to pay for funeral costs they can’t afford. And why? Because it’s not a reality people like to face, and they never think death is going to happen to them.
In Australia, funeral expenses can range from around $4,000 for a basic cremation to more than $15,000 for a basic funeral.
Funeral assistance may be available from the government if there are insufficient funds and the sale of your loved one’s assets won’t cover the cost of a simple burial. However, there are certain criteria that must be met for you to be eligible for support.
How to cover funeral costs
There are two ways you can prevent your family from the burden of funeral expenses.
- A pre-paid funeral
- Funeral insurance
A prepaid funeral is an agreement with a local funeral director. The funeral director will arrange a meeting time to organise the type of funeral you want—cremation or burial right down to selecting the coffin and flowers.
All your decisions will be listed in a contract and can also be added to your will. Often, you may be given the option of paying for the total amount upfront or you can pay regular instalments.
This way it doesn’t matter if the cost of funerals skyrocket because your costs are locked in at today’s prices.
Funeral insurance may be included in your life insurance or you can purchase it separately.
You’ll pay a set premium each month which will be paid out to a nominated person you trust, in the event of your death.
Your family will still need to make all the arrangements, but it will ease the financial burden that can accompany an unexpected death.
If you would like to know more about pre-paid funeral arrangements on the Gold Coast or Brisbane, please call Newhaven funerals on 1800 644 524 for an obligation free consultation.
You might find our previous article Pre Arranging a Funeral Relieves the Burden on Family Members of interest: