Preplanning a Funeral

Why plan ahead for your funeral?

Most people have little experience with organising a funeral, and making those decisions during a time of grief can be overwhelming for loved ones. Pre-planning or pre-paying your funeral helps ease the burden. It gives your family clear guidance, reduces stress, and can protect them from unexpected costs. Planning ahead also gives you a say in your final farewell.

Whether you choose a prepaid funeral, funeral bond or funeral insurance, each option helps reduce uncertainty and stress for loved ones. Your Funeral Director can guide you through the process and explain the different options.

What’s involved in preplanning a funeral?

While you may not want a fuss, it’s important to remember that a funeral or any kind of gathering is often for those left behind. By writing down a few simple wishes, you’re helping to ease the burden and give guidance at a difficult time. It can look however you want. You may not want a big service, and that’s okay. A farewell can be simple and personal such as family sharing stories, favourite music playing, or a quiet toast with a few loved ones.

Preplanning can be:

Documenting some of your wishes for your funeral so that your loved ones know what to do when the time comes
Organsing with your trusted funeral director the details you would prefer and having a more formal document in place so that your family know where to go and who to call when the time comes, with some arrangements noted
Noting your wishes and deciding to put some funds aside specifically towards your future funeral expenses (to ease the financial burden for your loved ones) in an investment like a funeral bond
Completing a pre-paid funeral contract with specific instructions and funds in place.

Pre-Paid Funerals

A Pre-Paid Funeral allows you to plan and pay for funeral services in advance. You decide on the type of service, location, burial or cremation, coffin, music, readings, and other details. Your Funeral Director will ensure your wishes are carried out.

Funeral Directors must invest the funds in a Friendly Society in strict accordance with the Funerals Act (1996) and the funds cannot be accessed until the funeral is provided; furthermore the funds are invested independently from your Funeral Director.

A pre-payment of a funeral does not impact on a pension entitlement, as it is not subject to an income or asset test. Payment of a Pre-Paid Funeral may be made in one lump sum or through a payment plan.

When organising a Pre-Paid Funeral it is important that family is advised that arrangements for a funeral have been made in advance. Copies of the Pre-Paid Funeral contract should be provided to members of the family or filed with the Will and other important documents.

Funeral Bonds

A Funeral Bond is another investment option which enables an individual to accumulate funds to meet future funeral expenses. A Funeral Bond is an investment towards the cost of a funeral. It is not limited to a specified contract and can be used in any way towards funeral expenses – which gives your family some involvement and choice around the farewell itself. Costs are not fixed like a prepaid funeral contract, and prices will increase over time.

Funeral insurance – things to consider

Funeral insurance is designed to help cover funeral costs and only pays out when the person insured dies. In most cases, it only covers accidental death in the first 12 months. At first, premiums may seem very affordable, sometimes less than a cup of coffee a week. But over time, the cost can increase significantly, especially as you get older.

Many people end up paying far more in premiums than the actual cost of a funeral, particularly if they live for many years after taking out the policy. And if payments stop, the cover is usually cancelled with no refund. It’s important to read the fine print and understand what you’re signing up for. Take the time to compare your options such as pre-paid funerals or funeral bonds and make sure your choice is right for you. Do your research, ask questions, and don’t rely on just one opinion. Making an informed decision now can protect you and your family from future stress.

Pre-paid Funerals FAQ

If I pay for my funeral now, who keeps the money?

The money you pay for your Pre-Paid Funeral Plan is held secure by an independent entity such as a friendly society or trustee company and is properly invested and safeguarded until such time as the funeral services under the Pre-Paid Funeral Plan are required. Only then will the funds be released to the Funeral Director.

Can I pay for a pre-paid funeral plan by instalments?

There are two ways to make payments for a Pre-Paid Funeral Plan. You can pay for your Pre-Paid Funeral Plan in a lump sum or your Funeral Director may give you the option to pay by instalments. This is usually arranged through a direct debit or booklet payment system.

What if I move interstate?

If you move interstate you can rearrange your Pre-Paid Funeral Plan accordingly. Your Funeral Director will be able to assist you with the transferring of your Plan to another Funeral Director. However, prices cannot necessarily be guaranteed on a transfer, as there are price differences between many country and city areas. The funds are required to stay in the secure investment you have arranged and can be accessed by the new Funeral Director at the time of the funeral.

What happens if death occurs interstate or overseas?

A Funeral Director should be notified immediately. They should be able to arrange for the transport of the deceased and attend to any statutory or customs requirements. In these circumstances there is usually an additional fee for the transportation of the deceased. Should the death and funeral occur overseas or interstate, the funds in the Pre-Paid Funeral Plan will be paid to the estate.

What happens if the funeral director I choose goes out of business?

The money you pay for your Pre-Paid Funeral Plan is held by an independent entity and therefore is completely protected. It is invested in a separate fund in your name. It is not accessible by your Funeral Director until your funeral service has been provided. In the unlikely event that your original Funeral Director is no longer in business, you can organise to have the Plan transferred to another Funeral Director.

Can I get my money out of Pre-Paid Funeral Plan?

No. You cannot withdraw from a Pre-Paid Funeral Plan prior to death, nor can it be used in any way other than to pay for your funeral expenses. If you are not completely satisfied with your Pre-Paid Funeral Plan, your investment can be cancelled and your money refunded in full within 14 days of receipt of your investment confirmation. Otherwise no withdrawal from a Pre-Paid Funeral Plan is permitted.

How do I locate a Pre-Paid Funeral?

When a Pre-Paid Funeral is finalised and the contract signed, a copy of the contract is held both by the arranger of the Pre-Paid Funeral, and by the Funeral Director. It is important to store it safely and let someone know where it is.

There is no central database that records Pre-Paid Funeral contracts, so if you have been informed or are aware of a family member/friend having taken out a Pre-Paid Funeral, we suggest to firstly look through their important documents for evidence of the contract. Secondly, speak to the person’s Solicitor to see if they had the contract filed away for their client, or speak to Funeral Directors in this person’s local area to see if they hold any record of a Pre-Paid Funeral contract being taken out. Our Find A Funeral Director search facility can be used to locate Funeral Directors in the relevant area.

You can also contact the companies listed below to check if a contract exists in the person’s name.

- Australian Unity: 13 29 29
- Aviva Australia (previously Norwich Union): 1300 659 659
- Australian Friendly Society: 1800 803 173 or 03 5485 7891
- Foresters Financial: 1800 645 326
- Funeral Plan Management (Lifeplan Funds Management): 1800 804 731
- Guardian Plan (InvoCare): 1800 151 158
- IOOF (VIC): 13 13 69
- KeyInvest (previously IOOF SA): 1300 658 904
- Manchester Unity (Foresters Financial): 1800 645 326
- State Trustees: 1300 138 672
- Sureplan Friendly Society: 1800 817 105

Is there legislation governing pre-paid funerals?

State	Legislation	Contact
New South Wales	Funeral Funds Act 1979 Funeral Funds Regulations 2011	NSW Office of Fair Trading Tel: 13 32 20 www.fairtrading.nsw.gov.au
Queensland	Funeral Benefit Business Act 1982 Funeral Benefit Business Regulations 2010	QLD Office of Fair Trading Tel: 13 13 04 www.fairtrading.qld.gov.au
South Australia	Fair Trading Regulations 2011 (Pre-Paid Funerals Code of Practice)	SA Office of Consumer & Business Affairs Tel: 08 8204 9777 www.ocba.sa.gov.au
Tasmania	Prepaid Funerals Act 2004	TAS Office of Consumer Affairs & Fair Trading Tel: 1300 654 499 www.consumer.tas.gov.au
Victoria	Funerals Act 2006	VIC Consumer Affairs Tel: 1300 558 181 www.consumer.vic.gov.au
Western Australia	Fair Trading (Prepaid Funerals Code of Practice) Regulations 2020	WA Consumer Protection Tel: 1300 304 054 www.commerce.wa.gov.au

Note: In the territories there is no specific legislation relating to Pre-Paid Funerals – individual pre-paid contracts stipulate the manner in which the funds are to be invested on behalf of the client.

A Time to Plan

Your Goodbye’ is about your farewell to family and friends. It’s about the final pages of Your Story, but like any good book it takes input and help from others. Your Goodbye should be a collaboration between you and those you love most, so that when the ink dries on your last page; you can all close the book with a sense of ease, understanding, pride and unwavering love.

Do those that matter the most to you know about all the little things that make up your life? Do you know what matters the most to them? We all may know parts but not the whole.

Having open and honest conversations about death and end-of-life wishes may feel difficult, but talking now well before the time comes can make a world of difference later. It helps avoid confusion, eases pressure on your family, and ensures your wishes are known and respected.

Every life is unique, and every goodbye should be too. Don’t wait. Start the conversation now. Because once you’re gone, the chance to do so is gone too.

‘Your Goodbye’ is our resource to help families talk openly about end-of-life wishes.

Find Trusted Help

For information and guidance on the various choices and options available contact your funeral director. They offer no-obligation information about all the options available.