Prepaid Funerals: Should I pay upfront or in instalments?

Published: 29/8/2023
Prepaid Funerals: Should I pay upfront or in instalments?
Prepaid Funerals: Should I pay upfront or in instalments?

Amidst life's many considerations, pre-planning your funeral stands as a significant step towards ensuring that your wishes are respected, your loved ones are spared unnecessary stress and your legacy is upheld. As you embark on this voyage of foresight and preparation, you're presented with choices that hold the power to shape the course of your final farewell.  

In this article, we'll delve into the heart of this decision-making process, weighing the benefits and considerations of each payment option. Alongside this exploration, we'll address common questions and concerns, guiding you towards a well-informed choice that resonates with your aspirations and realities.

Upfront payment for peace of mind

You have the choice to pay the full amount upfront. This means you won't need to worry about future payments. If your budget permits and you're ready, this can be a convenient and swift option. The added benefit is that you won't need to keep track of your budget on an ongoing basis.

Flexible instalment plan 

Alternatively, you can choose to pay in instalments. This might be preferable if the full cost isn't feasible at the moment. If you're receiving a pension, the payments can be aligned with your pension schedule. While there's a small fee for this option, it's distributed evenly across the total number of payments, making it manageable.

Why plan ahead? 

Planning and funding your funeral in advance provides significant benefits. It saves your family from financial stress and decision-making during a challenging time.   

RELATED ARTICLE: How to preplan your funeral in Australia

Comparing upfront and instalment payments

The choice between upfront and instalment payments depends on your circumstances; there's no one-size-fits-all answer.  

Opting for upfront payment grants you financial peace of mind. No further payments are required and if your budget allows, this can be a streamlined choice. On the other hand, instalments offer flexibility for those who can't cover the entire cost immediately. Moreover, if you're on a pension, you can align payments with your pension schedule, which can be very convenient. While there's a small fee for instalments, it's divided across payments.

Prepaid Funerals: Should I pay upfront or in instalments?
Prepaid Funerals: Should I pay upfront or in instalments?

Number of instalments

Instalments are generally paid every fortnight over a span of three years, totaling around 78 payments. If monthly payments suit you better, that's also an option. Alternatively, you can discuss a customised payment schedule.

Addressing payment challenges

Life can throw surprises and if you miss a payment. You might face a doubled payment in the following fortnight, or the total number of payments could be extended. The best approach is to connect with your prepaid funeral arranger to discuss the best course of action.  

RELATED ARTICLE: Things you might not know about prepaid funerals

Passing before completing instalments

In the unfortunate event of passing before completing instalments your provider will manage the necessary paperwork and communicate with your family. They can then settle the remaining balance on your behalf, based on the locked-in price.

Securing your funds

Most providers' prepaid funeral plans are supported by financial institutions. It's important to discuss these details in full with your provider. 

Ensuring no additional costs for your loved ones

Prepaying locks in today's price, eliminating future inflation concerns. Your family won't have to pay anything extra later on, except in rare cases when a considerable distance is involved. For example, if you move from a metro area to a regional location. It's crucial to keep your plan updated in such instances.

Locking in today's price with instalments 

Even with instalments, you secure today's price. It's a winning situation that allows you to take your time to pay the full fee.

Payment options and flexibility 

Most providers offer BPay direct debit, which entails a higher first instalment followed by regular smaller payments. Alternatively, a standard direct debit involves equal fortnightly payments.  

Preparing for your farewell is a significant decision, while you may want to check off these boxes swiftly, remember that taking time to consider your options is important. Compare prices, ask questions and make informed decisions.  

Once you've made your decision, you can move forward with the reassurance that you've made a thoughtful and informed choice, safeguarding your loved ones from unnecessary stress and financial strain. Your proactive approach today shapes a more peaceful and dignified tomorrow for you and your family.  

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