Planning for the cost of your funeral isn't the same as planning for your death, although this association can make some people hesitant to actually consider these costs. Considering a prepaid funeral isn't a morbid course of action and is financially sensible, sparing your family from having to find a considerable amount of money on short notice when the time actually comes. What are some of the ways in which you can make these financial arrangements?
Superannuation
When someone passes away, their superannuation is paid as a death benefit to a nominated beneficiary or to the trustee of your estate. A portion of this amount could conceivably be used to cover the cost of your funeral; however, this isn't an especially convenient option. The process for the payout of this benefit can be fairly complex, and it's unlikely that the funds will be made available in time to pay for the cost of a funeral. Using a portion of these funds in this manner will also reduce the amount available to your beneficiaries.
Life Insurance
Similar to superannuation, a portion of someone's life insurance payout can be used to cover the cost of a funeral. The funds can be made available relatively quickly (unlike superannuation), but like superannuation, using these funds to pay for a funeral will reduce the amount leftover for your beneficiaries.
Funeral Bonds
You can purchase bonds specifically intended to pay for your funeral. This can be a lump sum investment, or the cost can be spread out in instalments. Although this might cover the entire cost of your funeral, bonds don't always have the most predictable outcome, as the amount paid is actually invested. The variable results of these investments means that the value of the bonds (both the original amount paid as capital and the returns in the subsequent years) won't necessarily be sufficient when the time comes.
A Funeral Plan
Paying in instalments for a funeral plan offers the most dependable outcome. Your regular instalments contribute to a policy which is then paid out promptly when the plan is executed. These plans are usually divided into specifics, such as a certain amount for cremation or burial, the cost of the funeral service, the coffin and any required transportation. There can be additional third-party costs that won't be covered (such as flowers), but a prepaid funeral plan is a reliable way of sparing your family from the financial burden of laying you to rest.
Making the necessary financial arrangements for your funeral isn't quite the same as actually planning your funeral, and some of these options are far superior to others.
Share14 April 2021
Funerals can be a tricky time, as people are often on edge trying to deal with their grief. Some people also become argumentative when upset, so it can be a good idea to work with the funeral home to work out how to manage the maelstrom of emotions that are going on. It can often be useful to separate certain members of the family or social groups if you know that they are inclined to get aggressive or very loud when very upset. A great funeral home can help you to manage these sorts of issues to help ensure that the funeral runs smoothly.
