There is a lot of confusion around some of the terminology we use when describing the options we have in sorting out our funeral wishes. Terms like, pre-arranged funerals, pre-paid funerals, Funeral Bonds, and Funeral Insurance. We’d like to help you understand what they all mean.
They all exist, because each of them have their own place, and the purpose of this page is designed to help you understand the differences more clearly.
The advantage of pre-arranging your funeral is that when the inevitable does happen the process is made easier for your family by not having to ‘guess’ what you would have wanted.
When you pre-arrange your funeral no money changes hands. You are simply just making your wishes known in the event of your death, so that your family will know what your wishes are. We sit with you, offering choices and options that you may feel are appropriate to you. After making a careful record of those wishes, we are able to save them so they’re on file for as long as needed. This service is free of charge.
The advantage of pre-arranging your funeral is that when the inevitable does happen the process is made easier for your family by not having to ‘guess’ what you would have wanted. This takes a lot of stress from your family.
It takes such a load off your family, and the executors of your estate, to know that this is all taken care of, and your wishes are carried out.
When you pre-pay your funeral you are ‘locking in’ the cost of a funeral which may take place many, many years into the future, at today’s prices, saving you many thousands of dollars. What everyone who pre-pays their funeral finds, is that the financial burden of a funeral will be taken away from their family. The money is then invested in a secure ‘Funeral Bond’ that we can access only after your funeral has taken place, when we have possession of a certified death certificate. This money is safe and secure. But once it is paid into the bond, you cannot get it back. Of course, pre-paying your funeral has financial benefits for you as well. The money you pay is non-taxable and you may well be eligible for a higher rate of pension, by pre-paying your funeral.
Pre-paying is a great way of alleviating the financial burden from your family but what are your options if you don’t have enough money upfront?
We work out with you what your wishes are, then a safe and secure Funeral Bond is then created
It is possible to ‘pay off’ your pre-paid funeral. We work out with you what your wishes are, tell you the cost of the funeral of your choice. We work out with you a fortnightly or monthly installment plan, a safe and secure Funeral Bond is then created, and the installments are paid into it. It is more complicated than paying it in one sum, but it is certainly a great option for many of our clients.
Your wishes are not recorded with the insurance company, so if you choose to use insurance then it is still recommended that you pre-arrange with us so we can record your wishes.
Funeral insurance is when you set up funeral insurance through an insurance company. On your death they will pay your estate or the funeral director of your choice the amount you are insured for. It is a great option if you are on a very low income.
Some things to remember when choosing this option are that you MUST keep making payments to keep the insurance. If you stop paying the insurance or cancel it then all premiums paid into the fund are forfeited. You will not be covered. You can not get your money back.
We hope that this information is really helpful to you. If it is, please let us know. You can email us at: firstname.lastname@example.org or use our contact page.
If you still have questions, or would like to know further information about your options then please call us on 6433 4010 or 6425 7000 to arrange an appointment with one of our experienced staff.