Planning your own funeral is popular in Australia as it can save money and take stress off your loved ones. Here’s a few things to keep in mind if you’re considering it.
A prepaid funeral allows you to make decisions about your own funeral.
There are a few pros and cons to prepaid funerals and the benefits can vary by state.
A prepaid funeral is not your only option for funeral planning.
What is a prepaid funeral plan?
A prepaid funeral plan is a contractual agreement made with a funeral director. It allows a person to make decisions about their own funeral - and pay for the costs - before they die.
This type of funeral plan gives people the power to choose details about their own funeral and is generally cheaper as they're able to lock in today's prices for goods and services.
How are the funds released for a prepaid funeral plan?
When you organise a prepaid funeral plan, your money is generally kept in an independent funeral fund, registered with the relevant state authority, to keep it safe.
This protects you in case the funeral director goes out of business or doesn't follow through with the agreement. The money is only released to the funeral director after the funeral has been held and the contract requirements have been met.
Be aware: ACT and NT have fewer protections around prepaid funeral plans compared to the rest of the country. Always compare your options and read contracts carefully.
Pros and cons of a prepaid funeral plan
Pros
You get to make decisions about your own funeral, including preferred casket, service type, and many other details.
The cost of the funeral is calculated, and locked in, at today's prices - regardless of how much the cost of goods or services has increased by the time you die.
Pre-paid funerals can have a positive impact on your pension, as they are excluded from income and assets tests, regardless of the prepaid amount.
Cons
Pre-paid funerals are often made with local funeral directors. If you move outside of the area of service, your contract may be void.
The specific details you choose - such as a casket type or floral arrangement - might not be offered by the funeral director by the time you die.
There's a lack of flexibility with pre-paid funeral plans. If you change your mind, you might find it extremely difficult to change your funeral plan.
What to be aware of when arranging a prepaid funeral
Relocating could void your contract. If you move outside a funeral home's service area, it may not be required to perform the service and your money could be lost. If the funeral home agrees to transfer the contract to another funeral home, extras fees are often incurred.
It's not always possible to change your mind. If you decide you want a different type of funeral, or at a different price point, updating your wishes can be extremely difficult and sometimes impossible.
A pre-paid funeral is a legal contract. They can be confusing and convoluted. You may want to get a lawyer to look over the details.
ACT and NT have less protection for pre-paid funeral plans. If a funeral home goes out of business, you may be at risk of losing your money.
What are my other options for funeral planning?
Pre-paid funeral plans aren't the only way to plan or pay for your funeral in advance. There are other options, including:
Funeral insurance: Pay a monthly or annual premium to an insurer. When you die, your nominated beneficiary will receive a lump-sum for however much you nominated when taking out the policy. Usually, it's between $3,000 and $15,000.
Funeral bonds: Usually offered by a funeral home, life insurer or friendly society. WIth funeral bonds, you pay a deposit then make regular payments over time. Your money earns interest and can only be used for your funeral.
Life insurance: Most life insurance policies include a funeral benefit. However, if you have a stepped life insurance policy that regularly increases in price, be aware that the cost could become prohibitive as you reach old age.
The cost of a funeral
According to pricing data gathered from over 600 funeral directors and published by end-of-life specialists Gathered Here, the average cost of a funeral in Australia is $8,274. However, pricing can vary greatly depending on the type of funeral you choose.
Full funeral - $8,274 Basic funeral - $5,766 Simple cremation with no service - $3,513
Cremation with service and committal - $6,340 Simple, graveside burial - $5,161 Burial with service and committal - $5,714
FAQs
With funeral insurance, you pay regular premiums to an insurer and your nominated beneficiary receives a lump-sum when you die, to spend however they see fit. With a pre-paid funeral, you are required to cover the full cost of your funeral but get to choose specific details.
The best insurance plan for you may be different to someone else. Look for a plan that meets your specific requirements and is within your budget. Always read the product disclosure statement (PDS) carefully.
The average funeral cost in Australia is $8,274 for a standard funeral or $5,766 for a basic funeral.
Centrelink doesn't offer specific financial help for funerals but it does provide a bereavement payment to eligible recipients that could be used by family to help with funeral costs.
Nicola Middlemiss is a journalist with nearly a decade of experience in personal finance and insurance. She has contributed to Domain, Yahoo Finance, Money Magazine and Insurance Business Australia, offering in-depth insights into commercial insurance in the Australian market. Nicola holds a Bachelor’s degree in English from the University of Leeds and a Tier 1 General Insurance (General Advice) certification, which complies with ASIC standards.
See full bio
Nicola's expertise
Nicola
has written
247
Finder guides across topics including:
Personal finance
Personal insurance, including car, health, home, life, pet and travel insurance
Not sure who to trust when it comes to a funeral insurance companies? Compare quotes and providers with an adviser.
Important information about this website
Finder is a comparison service. We do not compare every product or every provider in the market.
We make money through commercial arrangements with some of the providers on this site. Products marked 'Sponsored', 'Promoted', 'Featured' or 'Advertisement' appear as a result of a commercial arrangement.
Our editorial content, product reviews and any 'Top Pick' designations are prepared independently of these commercial arrangements.
The default order of products in our tables can be influenced by commercial arrangements. You can re-sort or filter using the controls above each table.
Some content on this site may be generated or supported by AI tools. You should verify details directly with the provider.
Finder is one of Australia's leading comparison websites. We are committed to our readers and stand by our editorial principles.
Our comparison service does not include every product or every provider in the market. Some product issuers offer their products under multiple brands or through associated companies. Where we can, we identify the underlying issuer so you can compare like with like, but you should always check with the provider directly to confirm which brand you are dealing with.
Finder is a comparison website and an intermediary. We are not a product issuer and we do not provide personal financial or credit advice. When you click a link to a product, or apply for a product through our site, you deal directly with the product issuer. We may receive a referral fee, commission or other payment from the issuer if you click through, apply or take out a product. We describe these arrangements in more detail under 'How we make money' below.
Product features, fees, terms and eligibility criteria are set by the product issuer and may change. We rely on information supplied by issuers when we present product details on our site. Before you apply for or take out any product, you should confirm the details directly with the issuer.
We earn revenue from Finder in four principal ways:
Referral fees and commissions. When you click a product link, complete an enquiry form or apply for a product through our site, we may receive a referral fee, commission or other payment from the product issuer. We may also receive payment based on the volume of leads or conversions we send to an issuer.
Sponsored placements. Products marked 'Sponsored', 'Promoted', 'Featured' or 'Advertisement' appear as a result of a commercial arrangement between Finder and the issuer. These labels always indicate a paid placement. We do not use them for editorial choices.
Display advertising. Banner advertising, newsletter advertising and similar display ads on our site are paid by advertisers.
Content sponsorship. Some articles, videos and social media posts are sponsored by an issuer and are clearly labelled as such.
Our editorial opinions, product reviews and any 'Top Pick' designations are prepared independently of these commercial arrangements. A 'Top Pick' is an editorial choice made by our writers and editors based on the criteria described on each comparison page. A 'Top Pick' is not a personal recommendation and does not mean the product is appropriate for your circumstances.
If you would like to know whether we have a commercial arrangement with a specific product issuer, please contact us.
When products are grouped in a table or list, the default order can be influenced by commercial arrangements we have with product issuers. In some categories, sponsored or featured products appear in the top positions of the table by default, and are always labelled as such.
Other factors that influence default order include price, fees and features, and (where relevant) our editorial view of the product.
You can re-sort every comparison table using the controls above the table. You can filter by product features that matter to you. The order you see after re-sorting or filtering is not influenced by commercial arrangements.
Some content on this site is generated or supported by artificial intelligence tools, including our AI-powered assistant FinderBot. AI-generated content may contain errors. Please verify important information directly with the product issuer before making a financial decision. For more information about FinderBot, see the FinderBot Terms of Use and FinderBot Privacy Collection Notice.
Please read our website terms of use and privacy policy for more information about our services and our approach to privacy.
We update our data regularly, but information can change between updates. Confirm details with the provider you're interested in before making a decision.
Our goal is to create the best possible product, and your thoughts, ideas and suggestions play a major role in helping us identify opportunities to improve.
