The effects of the cost-of-living crisis are still being felt by Australian households. This can mean that organising and paying for a funeral today, can feel even more daunting than usual. Particularly if someone starts from a position of having no idea how much a funeral might cost. To help you plan ahead financially, we’ve produced the Golden Insurance Funeral Report.
In this article we’ll share some of the most useful findings from the report, so you can feel more informed and in control. We’ll look at how much funerals cost in Australia and give you ideas for helping you protect loved ones financially from the burden of the cost of a funeral.
Could you afford to pay for a loved one’s funeral?
With household budgets stretched and Australians struggling to make ends meet, the cost of a funeral can be a huge pressure both financially and emotionally. Our Golden Insurance Funeral Report revealed that 38% of respondents said that if a loved one died now, they couldn’t afford the costs of a funeral. And 54% of people said the cost-of-living crisis had made the ‘right’ funeral less affordable.
How much do you think a funeral costs in Australia?
To make sure you have the right financial plans in place to cover the cost of a funeral, it’s essential you have a good idea what a funeral is going to cost. However, our Funeral Costs Report revealed that 44% of respondents admitted to having no idea what a typical funeral costs. And 23% said they experience feelings of anxiety if they think about how they would pay for a loved one’s funeral in the current economic climate.
Our Golden Insurance Funeral Report reveals the average cost of a funeral in Australia, arranged in the past five years, was $8,202. Many families reported that the final amount was even higher, sometimes exceeding $10,000.
What are the main funeral costs you need to consider?
Some of the main costs you need to consider when planning ahead, include:
- Funeral director fees
- Burial or cremation costs
- The coffin or casket
- Service and venue costs
- Notices and paperwork extras
- A headstone or plaque
And there are extra funeral costs to consider too, such as the flowers, catering and transport.
What are the average costs for the different elements of a funeral?
Here's a breakdown of some of the main costs you might need to think about when arranging a send-off. These are the average costs in Australia, taken from our Golden Insurance Funeral Report:
- Burial plot $2,868
- Funeral venue/service $2,309
- The coffin or casket $2,281
- The headstone or plaque $2,126
- The Funeral Director $1,818
- Burial fees $1,686
- Catering for the funeral reception $1,512
- Venue for the reception/ wake $1,225
- Hearse $745
- The officiant $682
- The cremation $94
What are some of the unexpected costs when losing a loved one?
There are other charges you might not think about initially when planning for a funeral. Many can come as a surprise to loved ones. Here are some to think about and their average costs:
- Doctors' fees $63
- Death notices $483
- Invitations/ Orders of Service $469
- Flowers/tributes $640
How can you help with the cost of your funeral?
Thankfully there are ways of helping protect your loved ones from the costs of your funeral. Even in a cost-of-living crisis, it’s possible to plan ahead and protect family from financial burden.
Taking out a life insurance policy can be an affordable way to leave a cash payout for your funeral. In fact our Funeral Planning Survey showed that 1 in 4 funerals were paid for by an insurance policy that the deceased had taken out.
Taking out life insurance with Golden Life Insurance could help your loved ones with some or all of the costs of your funeral. Golden Insurance could let you leave up to $250,000 for your loved ones, depending on your age and personal circumstances when you apply.1 Putting a plan in place like this can give you real peace of mind and be reassuring. You can find out more about your life insurance options in our article ‘How does life insurance work?’.
When an insurance policy was used to pay for the funeral, more than eight out of ten respondents (81%) agreed with this statement: “I was able to plan the send-off my family member or loved one wanted because I could afford it with the insurance payout”.
How can you take out life cover today?
If you’re aged 40 or older and interested in leaving your loved ones have some financial help towards your funeral, you can get in touch with our Australian-based team of specialists at Golden Insurance. They’re on hand to answer any questions you might have and help you get your policy sorted. Simply give us a call on 1800 417 667, Monday to Friday from 8am to 7pm (AEST/AEDT), excluding NSW public holidays.