Will having insurance help with funeral costs?

When you are planning for the future, understanding the financial implications of funeral arrangements is crucial. At Anton Brown Funerals, we offer clear support and help you make informed choices when planning your funeral.

Here, we explore funeral insurance, its potential drawbacks, and recommend more beneficial alternatives like funeral bonds or separate savings.

What is funeral insurance?

Funeral insurance is a policy designed to cover funeral costs. Policyholders make periodic premium payments, and when they pass away, the policy provides a lump sum to cover costs.

However, many funeral insurance companies only pay for the actual funeral cost. They keep any extra money you may have paid in. This process can be lengthy and stressful, which is why we at Anton Brown Funerals do not recommend funeral insurance. We suggest looking into funeral bonds, like those from Sureplan, which offer a simpler and better option.

Why funeral insurance might not be the best choice

Another major downside of funeral insurance is its tendency to become expensive as time progresses. If you live longer than anticipated, you might end up paying more in premiums than the funeral’s actual cost.

Furthermore, failing to make a payment could mean forfeiting all the money you’ve already put in. This is another reason why we recommend exploring other options that provide greater financial stability and reassurance.

Exploring better alternatives

As we mentioned earlier, funeral bonds are a popular and financially sound alternative to funeral insurance. With Sureplan, you can pay a lump sum that grows over time, and the payout process is efficient and stress-free.

If the funeral cost is less than the amount saved, the next of kin or the estate receives the remaining balance. This option ensures that your investment is secure and not lost because of missed payments.

Pre-planning your funeral and setting aside savings in a dedicated account can also provide flexibility and cost-effectiveness. This method lets you control your plans. It makes sure your wishes are honoured without the stress of ongoing payments.

Impact on government benefits

Considering how funeral insurance might affect your eligibility for government benefits is also essential. Money saved in funeral insurance may count as part of your assets. This could affect benefits like Centrelink or Department of Veterans’ Affairs payments. This is another reason exploring alternatives like funeral bonds can be helpful.

Making the right choice

Before purchasing funeral insurance, evaluate your financial situation and long-term needs. Think about whether the premiums are affordable. Also, check if the policy terms can change with your needs.

Comparing options like funeral bonds or pre-paid funeral plans can help you find the best fit for your needs. Consulting with a funeral planner can provide valuable insights and guidance.

Emotional considerations

While funeral insurance might offer some peace of mind, the financial burden of ongoing premiums can add stress, particularly for those on a fixed income. Alternatives like pre-planning and setting aside savings can alleviate this stress, offering more control and flexibility. It’s important to be ready for the chance that funeral insurance may not give you the full amount you expect.

At Anton Brown Funerals, we are committed to helping you navigate these decisions with compassion and expertise. We aim to ensure that you can complete your funeral plans with dignity and respect. We want to give you and your loved ones peace of mind. If you would like to discuss funeral planning, please contact us.