Paying for your funeral

You can plan and pay for your funeral in a few different ways.

What funerals cost

Funerals can cost from $8,000 to around $20,000 depending on the type of funeral you choose.

The most common costs include:

• funeral director fees
• transport
• a coffin
• a death certificate
• permits, for example, for a burial at sea or on private land
• burial or cremation
• a cemetery plot
• other things like a celebrant, clergy, flowers, notices and the wake

If you want to pay in advance, you have a few options.

Ways to save for your funeral

There are a number of ways that you can put money side, or earmark money, to put towards the cost of your funeral. These include:

ballot a bank account

ballot funeral bonds

ballot prepaid funeral plans

ballot superannuation

A bank account

Saving is the simplest way to pay for your funeral. If you can, you could consider putting money aside in an everyday account, a term deposit or a savings account. Tell your family and beneficiaries about the account, so they can find it when they need it.

Funeral bonds

With funeral bonds, you pay a deposit then make regular payments over time. Your money can earn interest. However, you can only use the money to pay for your funeral and can't withdraw it early.

Many funeral bonds let you choose a funeral director. Or your family can choose one when you pass away.

You can buy a funeral bond from a funeral director, a friendly society or a life insurer. You may not see them advertised, so you may need to ask for one.

Read the product disclosure statement (PDS) and check the fees and costs before you sign up.

Prepaid funeral plans

Prepaid funeral plans let you choose and pay for your funeral in advance with a funeral director.

Prepaid funeral plans can cost less than funeral insurance or funeral bonds. They use today’s prices, so the cost doesn’t rise over time. You can pay in full, or pay a deposit and make regular payments.

Shop around, because funeral directors offer different packages. Ask for a full list of costs, so you know exactly what you’re paying for.

If you move interstate, check if you can move your plan to another funeral director.

Funeral fund rules vary per state

In these states, funeral directors must put your money into a registered funeral fund. It helps protect you if the funeral director goes out of business:

• New South Wales
• Queensland
• South Australia
• Victoria
• Tasmania

The Australian Capital Territory, Northern Territory and Western Australia offer fewer protections. Think about what protections you might have and whether another option might suit you better.

Superannuation

If you have super, your family may be able to use part of it to help pay for your funeral costs. But they may not get the money straight away. They usually need to lodge a death benefit claim with the super fund first. Your family may need to pay the costs upfront and get repaid later.

In some circumstances you may be able to access your super early on compassionate grounds. See when you can access your super early for more details.

Government bereavement payments

Services Australia offers payments and support to help when someone close to you passes away. See death and bereavement.

If you get a Department of Veterans' Affairs pension, your family may be eligible for a bereavement payment after you pass away.