It’s not something we like to think about but being prepared for your funeral will save your family unnecessary financial strain during their time of grief. Daytime TV is full of advertisements for Funeral Insurance but how do you know which is more suitable to your needs – Funeral Insurance, or a Prepaid Funeral? It’s important to know all the facts before you make a decision.
Here are 5 things you need to know before taking out a policy:


  1. Funeral Insurance premiums usually go up every year. If you can no longer afford to pay, you’re likely to lose every cent you’ve paid so far. Whereas, a Prepaid Funeral can be arranged on a payment plan, with no price increases. And once it’s paid for, there are no ongoing costs.
  2. When your family does need to claim your Funeral Insurance, they’ll pay the current cost of a funeral, and your Funeral Insurance may not be sufficient to fully cover the costs. A Prepaid Funeral is locked in at today’s prices. The cost of funerals will, inevitably, increase over time but your family won’t pay a cent more, not matter how many happy, healthy years you have ahead of you.
  3. You must continue to pay your Funeral Insurance until the day you die. It may end up costing you more than the cost of a funeral but there will be no refund. A Prepaid Funeral is capped at today’s prices. No more to pay.
  4. Most insurers only cover accidental death in the first year (sometimes in the first 2 years), so if you die of a terminal illness, you won’t be covered. A Prepaid Funeral is guaranteed – no matter the cause of death.
  5. Whether you take out Funeral Insurance, or a Prepaid Funeral Plan, neither will affect your pension or other entitlements. If you’re still working, you need to ask yourself whether you’ll be able to afford the ever increasing Funeral Insurance premiums when you are retired, especially if you’ll be relying on the pension.


Prepaying a funeral doesn’t mean you must be unwell, it simply means you’re prepared. If you choose to prepay your funeral, make sure you tell your family about your decision, so they can enjoy the peace of mind, knowing it’s all taken care of.

If you’d like to find out more about a Prepaid Funeral, please contact us. We’d love to answer all your questions.

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