While no one likes to think about the inevitability of death, preparing for funeral expenses ahead of time is a great way to ensure that your family is not left with financial burden when you are gone.
While there are several different options available to ensure that your funeral expenses are covered when the time comes such as a life insurance or funeral insurance policy, one available option that may give you better financial flexibility is a prepaid funeral.
A prepaid funeral allows you pay for the full amount of your funeral expenses ahead of time, either all at once or through an instalment plan. And unlike funeral insurance where you’ll need to pay for your premiums through an extended time, in a prepaid funeral, once the total expense has been paid, your payments can stop as well.
Below, we’ll cover several reasons why prepaid funerals are the most financially advantageous way to ensure that your funeral expenses are covered.
Lock in your price
When you purchase a prepaid funeral, you can lock in the price of your funeral as it would cost the day you purchase the plan, rather than paying what the expense of the funeral will be in the future. Given rising inflation and increasing funeral costs, locking in today’s price for a funeral in the future is likely to yield a considerable discount.
In this way, prepaid funerals can be something of a hedge against rising costs to ensure that you are able to purchase the funeral that you desire for as little as possible.
Cheaper than funeral insurance
In the long run, purchasing a prepaid funeral is almost always going to be cheaper than purchasing funeral insurance to pay for the same expenses. Insurance premiums add up quickly and can soon exceed what your funeral expenses will be.
With funeral insurance, payments for your insurance premiums tend to stretch out throughout your life and can become quite excessive. With an Olsens prepaid funeral, you can settle on a fixed price for your funeral on flexible payment terms, and maximise your pension entitlements.
Convenient payment options
Prepaid funerals enable you to structure your payment plan so it is more manageable rather than forcing you and your family to ideal with a large upfront expense. Of course, when you purchase a prepaid funeral you also have the option to pay the entire amount at once. If you would prefer to pay for your funeral in regular instalments over time, though, there are several great payment plans available. These payment plans can significantly decrease the financial burden of paying for funeral expenses.
Avoid affecting your pension payments
In Australia, all of the expenses associated with a prepaid funeral are not assessed as assets when calculating your pension payments. This enables you to purchase a prepaid funeral of any cost without having to worry about whether it will increase your assets and therefore reduce your pension payments.
Personalise your funeral
For many, it can be a great comfort knowing exactly how your funeral will be carried out. When you purchase a prepaid funeral, you are able to select all of the options that you desire while you’re still alive. In this way, prepaid funerals enable you to personalise your funeral to your desires and rest assured that your final wishes regarding your funeral will be carried out. If you have a vision in mind for how you want the final celebration of your life to go when the time comes, purchasing a prepaid funeral is the best option that you have available to ensure that your wishes are carried out.
Avoid burdening your family with funeral expenses
The biggest reason people purchase life insurance, funeral insurance, or a prepaid funeral is to avoid leaving their family behind with a financial burden when they are gone. Knowing that when you pass away all of the expenses concerning your funeral and burial have already been paid for can provide peace of mind that is invaluable.
Given the additional advantages that prepaid funerals have over funeral insurance, purchasing a prepaid funeral is the best way to guarantee that your family is not left with any significant financial obligations when you pass away.
Consider pre-paying your funeral this financial year
From peace of mind to a considerable tax deduction, there are several noteworthy advantages to paying for your funeral expenses ahead of time by purchasing a prepaid funeral.
At Olsens Funerals, we are happy to offer a wide range of prepaid funeral options, allowing you to arrange the funeral you desire and pay for it on a schedule that best fits your financial situation.
If you would like to learn more about purchasing a prepaid funeral from Olsens Funerals, we invite you to contact us today.