Paying for a funeral can be difficult. And it’s an expense you don’t want to leave behind for your loved ones. As the costs continually rise—the average funeral in Australia already costing between $4000 and $14000—knowing how to save or acquire the funds necessary to pay such a high price can be troublesome. But it’s the first step when it comes to planning funeral. Thankfully, several options exist to help.
Prepaid funeral plans are the simplest means of planning a funeral. By purchasing the funeral package early, and making all the arrangements prior to death, you’re able to pay for the cost yourself, without leaving behind a bill for your family. This method has the added advantage of allowing you to make certain choices for your funeral location and aesthetic. Of course, it does require all the money upfront. If that’s not possible, other methods will have to be used.
Funeral insurance is a popular way to pay funeral costs. Specific policies can be purchased that are just for funeral costs. Or more standard life insurance payouts can be used. As with any type of insurance, purchasing when you’re young and in good health will help keep costs as low as possible. And being a member of a friendly society will give even more options.
Friendly societies or mutual societies exist to help their members take advantage of group insurance, pension, and other financial and social services. Many friendly societies have access to funeral or life insurance, and some even form burial societies to help their members with final expenses. Becoming a member of a friendly society can help provide not only funding, but also help planning funerals as well.
If none of these are a viable option for you, then simply saving can be possible. Savings accounts can be set up to put money aside for your funeral, and most will gain interest to add even more to the fund. However, this method can take a long time. While no one wants to think about passing away in the near future, or even at all, taking steps to ensure your family won’t be financially burdened, even if you pass away soon, is the most responsible choice.
Each of these approaches has its own advantages and drawbacks. If you’re lucky enough to not have to worry about the financial burden, then paying for and planning a funeral won’t be terribly stressful. Finding the funds to prepay, or starting a funeral savings account, will likely work out well. If, however, you worry about the debt you could leave behind, finding funeral insurance or a friendly society may be a wise decision.