Paying for funerals is expensive but there is help available to cover the costs. A savings account or a prepaid funeral is a good way to plan and pay for your funeral.
There are also options to help you cover the funeral costs of other family members.
The Youpla Group, also called the Aboriginal Community Benefit fund, went into liquidation in March 2022.
To help the families of fund members affected by the collapse, the Australian Government is running the Youpla Group Funeral Benefits Program.
The Program will pay a funeral benefit for a person who has passed away that was a fund member on or after 1 April 2020. You can still make an application if the funeral has already been paid for. This program will continue until 30 June 2024.
From July 1 2024, people who paid for Youpla policies on or after 1 August 2015 can apply for a payment under the Government's new Youpla Support Program.
Help paying for someone else's funeral
If someone has passed away and you don't have enough money to pay for their funeral, help is available.
If you've lost a partner who received a Centrelink benefit, bereavement payments may be available. Contact the Indigenous Call Centre on 1800 136 380 or visit Services Australia.
Veterans or former members of the Australian Defence Force may be able to get help with funeral costs. Contact the Department of Veterans' Affairs on 1300 55 1918 and ask to speak with an Indigenous Veterans' Liaison Officer.
Check whether the person who passed away had any insurance as part of their super fund. This may provide money to help pay for their funeral.
Other organisations that can help with funeral costs:
New South Wales
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Queensland
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Western Australia
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Department of Communities, Child Protection and Family Support |
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Northern Territory
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Victoria
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South Australia
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Tasmania
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Australian Capital Territory
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Paying for a loved one's funeral
A factsheet with information about financial help if a family member has passed away
Check your super fund
If you have a life insurance policy with your super, your super fund will pay a sum of money to your dependants when you die. This is called a death benefit and your dependants could use part of it to pay for your funeral.
Phone your super fund and ask them if you have a life insurance policy. Getting life insurance through your super fund could be a lot cheaper than elsewhere. Check the fees, terms and conditions.
When you pass away, money you have saved in your super is usually paid to your dependants. Some or all of this money could help pay for your funeral. Your family might have to pay for your funeral until your will is settled.
If a friend or a relative passes away and they were dependant on you, you may be able to access your super early to cover the costs of their funeral. Talk to your super fund or get help from a financial counsellor.
Saving for funerals
Putting money into a savings account can help your family pay for your funeral. It can also help if you have to help pay for someone else's funeral.
Open a savings account with a high interest rate and save some money each week or month. Keep this account separate from your everyday account. Tell your family about the account and what it's for.
To make sure your family can access the money when you pass away, talk to your bank about why you want the account.
Funeral bonds
Funeral bonds are offered by friendly societies or life insurance companies. You set aside regular amounts of money or a lump sum payment for your funeral. The money is invested and will grow in value. It can only be used for your funeral and normally can't be accessed earlier.
Prepay your funeral
Prepaid funerals allow you to choose the type of funeral you would like. You can either pay for it in full upfront or pay it off over a period of time.
Check if you can get a refund from your prepaid funeral if you change your mind.
In some states, you must register your prepaid funeral. Your state and territory fair trading office can help you with more information about prepaid funerals.
Beware of funeral cover, plans and insurance
With funeral cover, plans and insurance, you make regular ongoing payments until you pass away. When you've passed, your family receives an amount of money to cover the cost of your funeral.
Some Indigenous organisations offer funeral cover, as do private companies.
You may end up paying a lot more than the actual cover you will get. For example, if you start paying for funeral cover when you or your family are very young, you might end up paying a lot more than a funeral would cost. A savings account or a prepaid funeral might cost you less for the same funeral.
If you miss payments or cancel the policy, you might not get a refund and you could lose all the money you paid. Read the product disclosure statement (PDS) or brochure to find out what happens if you cancel.
Don't feel pressured into buying funeral cover by people who come to your house. Take your time to think carefully and do not be pressured into buying funeral cover. Read our tips for dealing with pushy door to door salespeople.
Avoid a funeral rip-off
How to avoid paying too much when it comes to funeral insurance and what sorts of options you have.
Get help with funeral cost decisions
Get help from a financial counsellor at Mob Strong Debt Help or talk to a financial capability worker. They can help you decide which option is best for you.