Things you might not know about prepaid funerals

You can take control of your future by investing in a prepaid funeral, by doing so you relieve your family of the burden of worrying about funeral arrangements and help them to celebrate your life in the way you would want. In this article, we will explore prepaid funerals and highlight some things you might not have known about them.

What is a prepaid funeral?

A prepaid funeral is a legally binding contract between you and a funeral service provider that ensures the service you pay for today will be delivered when the time comes. You may choose a prepaid funeral to spare family members any unnecessary concern or stress. By prepaying for your funeral, you help them to understand your final wishes so they can create the passage you want.

The benefits of a prepaid funeral

Prepaying for your funeral protects you and your loved ones from rising costs by locking in today's price, thereby avoiding inflation. You also alleviate the financial responsibility from your family. Depending on your financial situation, you can usually pay the entire balance upfront or set up a payment plan to pay off your funeral over time. By choosing to prepay your cremation, you ease the time pressure that comes with a traditional funeral. This allows your loved ones to arrange a celebration of life service at a time that suits them, once your ashes are returned.

Additional fees

By prepaying your cremation, you are locking in today's price with no more to pay. There won't usually be any additional fees to pay when the time comes. The exception to this is from time to time, there may be an additional charge for transport if a person passes away quite far from the registered residential area in the original plan. To avoid this, it's best to advise your prepaid funeral provider if you are planning to move house.

Prepaid cremation or funeral insurance: which is better?

When you have funeral insurance, the person you nominate will be paid out a predetermined amount when the time comes. This may or may not cover the entire cost of the funeral, depending on inflation between now and then. In addition, they will be paid a sum and will then need to arrange the funeral service on your behalf. As you age, the premiums you are asked to pay to maintain your funeral insurance will likely increase and if you skip a payment or cannot afford the escalating charges, you will lose your benefits.

In contrast, when you prepay your cremation you are not only locking in the price but also locking in the service. Your family won't be left with any questions about what you would've wanted and they won't have to worry about coordinating all the different elements. With one phone call, they will be setting your wishes in motion. If you transition before making the last payment on a prepaid cremation, those left behind will be able to pay the remaining balance either from your estate or on your behalf.

The price of a prepaid funeral and a prepaid cremation

Today, the price of a traditional funeral can range from $4,000 to $15,000 or more, which includes:

Funeral director
Transport of the deceased
Casket
Service vehicle
Newspaper notices
Death certificates
Funeral flowers
Burial plot
A wake
A burial
Cremation service

As prices rise over time, so too will the cost of each of these elements. In contrast, a direct cremation service can be locked in today for around $2,500 incl. GST, depending on where you live. With the cremation finalised in advance, your loved ones can celebrate your life in a way that suits them and their budget, when the time comes.

Choosing a prepaid funeral provider is an important decision. It is best to do some research before committing to a provider. Look for a provider with a good reputation and a solid history of providing excellent service.

Consider the following when choosing a provider:

The provider's experience and reputation in the industry.
The range of services offered, and whether they can cater to your needs.
The fees and payment options available.
Whether the provider has any affiliations with religious or cultural groups.
Any additional features or benefits provided, such as transport options or memorialisation options.

Not all prepaid funeral plans are the same. Each plan can differ in what it covers and some providers may have additional fees or exclusions. Be sure to read and understand the terms and conditions of your prepaid funeral plan before making a commitment.

Making changes to your prepaid funeral plan

As you age or as your circumstances change, your funeral wishes may also change. If you wish to make changes to your prepaid funeral plan, speak to your provider. They may be able to assist you in making amendments or providing options to better suit your current needs.

If you wish to cancel your prepaid funeral plan, speak to your provider. You may be entitled to a refund or may need to pay a cancellation fee. Be sure to read and understand the cancellation terms and conditions of your plan.

In the event that you pass away before your prepaid funeral plan is complete, your family will be able to complete the arrangements on your behalf. The prepaid funeral provider will work with your family to ensure that your wishes are met and any outstanding payments will be settled from your estate.

A prepaid funeral plan can provide peace of mind for both you and your loved ones. It ensures that your final wishes are met and relieves your family of the financial and emotional burden of arranging a funeral during a difficult time.

Ultimately, investing in a prepaid funeral plan is a thoughtful and practical decision that shows consideration for your loved ones and ensures that your final wishes are respected.