Paying For a Funeral: Your Options Explained

It’s no secret that funerals can be expensive and the burden of finding the money quickly to pay for a fitting tribute when someone passes away can add extra pressure on those you love.

This is one of the main reasons many people choose to pre-plan funerals and put money aside for the arrangements.

There are a couple of main alternatives when it comes to paying for a funeral in Australia, including:

1. Funeral Bonds
2. Funeral Insurance

In this blog, we explain each option and discuss what we believe to be some of their pros and cons.

It’s important to note that all products and policies differ, and some of the advantages and disadvantages we’ve outlined may not be applicable to a type you are considering. Before you agree to a payment option it’s vital that you read any documents and terms and conditions.  At Anton Brown Funerals, our preferred option is Sure Plan and if you’re happy to use this product we will go through the terms and conditions thoroughly with you, so you understand exactly what is involved.

Paying For a Funeral: Your Options Explained

Funeral Bonds

What Are Funeral Bonds?

Funeral bonds are managed investment products which involve a person putting money away over time and saving for their funeral that way.

Things to keep in mind when considering funeral bonds:

• Benefit Payment:
  • The money can only be withdrawn once a person has passed away and is to be used for funeral costs.
  • Funds are released by a funeral director or estate. If there are funds left over the money goes back to the nominee (if that is Anton Brown Funerals then we would refund that amount to the family.)
• Contributions:
  • There are a number of ways to add money into your bond. Those include an up-front payment or regular contributions. The money is invested until the time it’s needed.

Funeral Insurance

What Is Funeral Insurance?

Funeral insurance is an agreement with an insurer, where you pay regular premiums over a term and your family will be paid a fixed lump sum amount to cover funeral expenses when you pass away.

Things to keep in mind when considering funeral insurance:

• Benefit Payment:
  • How quickly are benefits paid out after claims are lodged? (From our experience, some are paid out quickly, whereas for other families it can be quite lengthy and frustrating dealing with insurance companies).
• Premiums:
  • Some insurers cap their premiums. However, with some policy’s premiums may increase over time or when you turn a certain age. This can make them unaffordable for some individuals – such as those on an aged pension or disability pension. Also, the amount you pay can add up over the decades and end up being more than your funeral expenses.
• Amount of Cover:
  • Typically, you can select your amount of cover to be received when passing.

Paying For a Funeral

If you’d like to ask any further questions, Anton Brown Funerals is more than happy to help, so please call today on (07) 3217 3088 or send us a message online here.