Saving Up For Your Funeral
It is never too soon to begin planning and making arrangements for your funeral. Even though thinking about your own funeral can be uncomfortable, by having everything ready ahead of time you can save your loved ones a lot of emotional grief and guarantee that your funeral will be exactly the way you want it.
Funerals are expensive these days. There are expenses for a coffin, morgue visits, flowers, the burial, the funeral services and more, so it’s important that you start saving early. Having your funeral expenses paid for ahead of time will prevent a large financial burden for your family and loved ones, so have a look at the following tips for saving for your funeral.
Do You Already Have Cover?
Before you get serious about buying a funeral plan or funeral cover, check to see if any of the following applies to you:
- Is there a life-insurance policy with your superannuation or a health-insurance policy that either pays for, or helps with, funeral expenses?
- Are you a surviving partner of a person receiving a Centrelink benefit?
- Are you a veteran, former member of the defense forces, or a member of a pensioner association or trade union, and entitled to receive financial assistance for funeral costs?
- Does your local Aboriginal or Torres Strait Islander community organization or land council provide financial assistance?
- Can the state or territory government assist you with the cost of a basic funeral or cremation?
Check In With Your Super Policy
If your super has a life-insurance policy, it may pay a sum of money to your dependants when you pass away. This is called a ‘death benefit’ and your loved ones can use part of it to pay for your funeral. Even if you don’t have a life-insurance plan as part of your super, the super itself may be able to pay for some of your funeral costs.
Start Your Own Funeral Fund
If you know how much your ideal funeral is going to cost, you can easily plan to have the cost covered and begin putting money away into a special funeral fund. Talk to your bank about opening an account with a high interest rate, decide how much you will need to pay into it every month, and start saving! Be sure to tell your family members about this account, so that they know where to get the money when the time comes.
Invest in Funeral Bonds
Funeral bonds are offered by friendly societies or life-insurance companies, with whom you will set aside regular amounts of money for your funeral. This money is invested and will grow in value over time. At the time of your passing, the money can be accessed, but it can only be used to finance your funeral.
Pre-paid Funerals
Many funeral directors will offer pre-paid funeral packages that you can either pay for in full by a one-off payment or pay in instalments over a period of time. This is a great way to get exactly the funeral you want, and, by paying your money upfront, you won’t have to deal with any changing prices or inflation. Be sure about your decision, however, as some places may not offer a refund if you change your mind.
