Golden Insurance was born to meet the needs of Australians who are looking to help provide a brighter future for their loved ones, including planning for the financial impact of life’s major events.
We know that for Australian families, funerals can often add unexpected costs at an already difficult time. With so many different parts involved, the true cost often catches people off guard. To help you better understand the real challenges families face when losing a loved one, we commissioned our Funeral Costs Report, which is based on thousands of real experiences from people who have recently planned a funeral.
Our findings reveal what families actually pay, which expenses add up fastest, and how the cost of living crisis is affecting people’s ability to feel that their loved ones’ future will be protected.
Key findings
Figures below are taken from our Funeral Costs Report (commissioned in 2024).
- The average funeral cost $8,202
- 30% of funerals cost $10,000 or more, and 8% exceeded $15,000
- Total costs could reach around $23,600 for a burial and $15,000 for cremation
- Only 38% of Australians feel they could afford a funeral right now
- Stress levels averaged 6.9 out of 10, with nearly half rating their stress as 8 or higher
- 40% have never discussed funeral plans with anyone
What does the average funeral cost in Australia?
Australians who arranged a funeral in the past five years paid an average of $8,202. But it doesn’t tell whole picture. That’s because costs can vary widely based on your choices and other factors. These because costs can vary widely based on your location, the type of service, and any optional extras you choose.
Three in ten funerals cost $10,000 or more. At the higher end, 8% exceeded $15,000. These figures reflect the final bills families faced, as our research showed some individual elements can greatly increase the total cost.
Learning about funeral costs in Australia helps families prepare and avoid unexpected bills.
What does a basic funeral include?
A basic funeral costs an average of $4,201. This typically covers essential services without extras like elaborate coffins, big flower displays, or catered receptions.
Most Australians (91%) used a funeral director. The average fee was $2,613, which included coordinating the service, completing paperwork, and providing guidance through the process.
Is burial or cremation more common?
When planning ahead, 54% of Australians prefer cremation and 42% prefer burial.
Once you add up everything involved:
- A burial could cost around $23,600
- A cremation could cost around $14,800
These totals include things like the funeral director, venue, coffin, flowers, notices, memorials, and reception. For burials, the cemetery plot is often the single biggest expense.
What are the biggest funeral expenses?
The largest expenses tend to be:
- Burial plot: $2,868 on average
- Venue or service location: $2,309 on average
- Coffin or casket: $2,281 on average
- Reception and associated costs: $3,273 on average (including memorial plaques, notices, and catering)
These add up quickly and can vary greatly from the average cost depending on location, choice of providers or the final wishes of the deceased. What starts as a modest plan can grow as families consider ways to honour their loved one.
Who pays for funerals?
Family members covered costs directly in 45% of cases. Nearly half of respondents (47%) contributed financially, with an average contribution of $5,588.
One in four (25%) used an insurance policy to help pay for funeral expenses. Among those who did, 81% said it helped them plan the send-off they wanted without the same financial strain.
Despite planning efforts, 32% of people found the funeral cost more than expected.
The Australian Government offers a Bereavement Payment to certain eligible people, but this may not cover the full cost. Life insurance is one way families could help bridge the gap.
Can most Australians afford a funeral right now?
Australians are split on funeral affordability. When asked if they could afford a funeral right now:
- 38% said yes
- 38% said no
- 23% didn't know
More than half (54%) said the cost of living made affording the "right" kind of funeral for a loved one harder.
How stressful is organising a funeral?
Those who arranged a funeral rated their stress levels at an average of 6.9 out of 10.
Nearly half (46%) rated their stress as 8 or higher. Almost one in six people (16%) gave it the maximum rating of 10.
When asked about funeral costs, people said they felt:
- Stressed (43%)
- Sad (43%)
- Helpless (22%)
- Frustrated (19%)
- Prepared (11%)
Having plans in place beforehand can help reduce the stress for loved ones who may have to prepare.
How are Australians preparing for funeral costs?
Nearly a quarter (24%) have not set any money aside for funeral expenses.
Among those who have prepared, the average amount set aside is $4,474. For Australians aged 55+, this rises to $5,587. 41% of this group have set aside $7,000 or more.
Other preparation steps include:
- Wills: 50% of people who answered this question have one, while 47% don't
- Conversations: 40% have never discussed funeral plans with anyone
- Estate fees: Professional fees average of $3,610, with 10% paying over $7,000
The MoneySmart website offers helpful guidance on wills and estate planning.
How can Golden Life Insurance help with funeral planning?
Golden Life Insurance offers a straightforward way to help cover funeral costs and make your golden years shine:
- Up to $250,000 paid to your loved ones, depending on your age when you apply1
- Get a 100% early pay out of your life insurance benefit amount if you are diagnosed with a Terminal Illness.2
- Our straightforward claims process is designed to be simple, and our Australian-based claims specialists are on hand to help your loved ones.
- You're covered from day one for death and terminal illness,1 so you can get on and enjoy life.
- Australian residents aged 40-80 can apply with no medical exams or blood tests required! Simply answer a few health and lifestyle questions, and you're all set.
- If you're a non-smoker you'll enjoy lower premiums3
Planning ahead for a brighter tomorrow
Funerals can be costly. Taking small steps now, like talking to family, setting money aside, or considering your options can all make a real difference later.
Life insurance can help provide a way to ensure your loved ones have financial support when the time comes. If you're wondering how much does life insurance cost, the answer depends on things like your gender, age, smoking status, health, and the level of cover you choose.
If you’d like to chat, our specialist team members are ready to answer any questions you might have. You can secure a policy in a matter of minutes – all you need is your phone.