Planning a funeral in advance
Planning ahead means deciding now what you want, and choosing whether to pay in advance, so the people you leave behind are not left guessing or paying. Here is how it works, including the catches, with nothing to sell you.
Two parts to planning ahead
They are separate. You can do one, both, or start with whichever feels right. There is no rush and no pressure.
Write down your wishes
It costs nothing, and it takes the hardest choices off your family.
Note your preference for cremation or burial, the kind of service, and any wishes, then tell someone you trust where to find it. Keep it with your will.
Cover the cost in advance
Optional, through a prepaid plan or a funeral bond.
Setting money aside now can protect your family from rising costs, but the options work differently and some have catches. The section below explains them plainly.
Decisions you can make in advance
The main choices a person can set out ahead of time. None of it is binding, and you can change your mind whenever you like.
Cremation or burial
The first and biggest choice, and the one that shapes everything else.
Compare cremation and burialThe kind of service
A full service, something simple, or a direct cremation with a memorial later.
Direct cremation explainedYour personal wishes
Music, readings, who speaks, where it is held, anything that matters to you.
Where to write it down
A simple wishes document, kept with your will and shared with someone you trust.
Find directors who offer prepaid plans
Search your suburb or postcode to find directors near you who offer prepaid funeral plans, and compare them before you commit.
Always free for families. No obligation to choose.
How to set money aside in advance
Prepaid plans and funeral bonds are the two main ways to set money aside. Funeral insurance is a different kind of product, and ASIC urges caution. Read the detail before you commit, and consider speaking to a financial adviser.
Before you commit to a product
Prepaid plans, funeral bonds and funeral insurance are financial products with real differences and costs. This page is general information only and does not take your personal circumstances into account. We do not sell or recommend any of these products. For independent guidance see ASIC’s MoneySmart, and consider speaking to a licensed financial adviser before you commit.
For the detail, go to the bodies that hold it: ASIC MoneySmart on paying for a funeral and on funeral bonds and insurance, Services Australiaon how funeral bonds affect the pension and assets test, and your state or territory’s fair trading or funeral funds regulator. We give general information only; they hold the detail.
Common questions
What are funeral bonds?
A managed investment you pay into to cover your funeral later. The money grows over time and is paid out for the funeral when you die. It is not tied to a particular director, which is the main difference from a prepaid funeral.
How do funeral bonds work?
You pay in a lump sum or regular contributions, the bond grows, and on death the balance is released to whoever organises the funeral, to pay for it.
Do funeral bonds affect the pension or Centrelink?
Funeral bonds up to a set limit are generally exempt from the Centrelink assets and income tests, which is part of why people use them. Confirm the current limit with Services Australia before relying on it.
Where can I buy a funeral bond?
From friendly societies, some funeral providers and banks. Compare them on fees and returns, and check the independent guidance on MoneySmart first. We do not sell or recommend any product.
How much do prepaid funerals cost?
A prepaid funeral costs the same as the funeral you choose. As a guide, a direct cremation typically runs $2,000 to $5,000 and a service with cremation from $4,500 upwards. Indicative only; prices vary by provider, location, and the options you select.
Is funeral insurance a good idea?
Funeral insurance is not a savings plan. It is ongoing cover you pay premiums for. ASIC warns that premiums often rise as you get older, that you can end up paying more than your family will receive, and that if you stop paying you can lose what you have paid in. For most people a prepaid funeral or a funeral bond is a safer way to plan ahead. Read the independent guidance on ASIC MoneySmart before you commit.
