At Golden Insurance we understand organising a funeral for a loved one can be a huge practical, financial and emotional challenge. And all this comes at the worst possible time. So we’re here to help you plan ahead and take some of the financial burden off your loved ones. To help you better prepare for the future, we conducted the Golden Insurance Funeral Report which breaks down the real cost of funerals in Australia.
In this article we’ll share some of the most useful findings from the report, to help you plan ahead financially.
What are the main funeral costs to think about?
Our Golden Insurance Funeral Report reveals a clear and honest picture of the costs that Australians are facing when planning a funeral. Our findings show 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, with one in three exceeding $10,000.
Some of the main costs you need to consider 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 lots of extra funeral costs to think about too, such as the flowers, catering costs and transport.
What are the average costs for the different elements of a funeral?
Here's a break-down 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
- The officiant $682
- Hearse $745
- The cremation $94
What are some of the unexpected costs when losing a loved one?
There are lots of costs 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, as shown in our report:
- Doctors fees $63
- Death notices $483
- Invitations/ Orders of Service $469
- Flowers/tributes $640
Will loved ones need to cover some or all of the bill?
Almost half (47%) of respondents to our Golden Insurance funeral planning survey, made a financial contribution to the funerals they helped to organise. Many of those contributions were large. On average, respondents paid 46% of the total cost, and their average contribution was $5,588.
There were a range of reasons why respondents ended up paying for all or part of the funeral. Reasons cited most often were:
- the death was unexpected, so no plans had been made for a funeral
- family and friends wanted to give their loved one a better send off, meaning costs were higher
- the deceased either did not have enough money in their savings to pay for the funeral, or had not set enough money aside for the specific purpose of paying for a funeral
However, this doesn’t always need to be the way. You can plan ahead and help relieve the financial burden on your family. Life insurance can be a useful way of doing this.
How can I relieve the burden of funeral costs for my family?
Loved ones don’t always need to help cover the costs of a funeral. If you take out a life insurance policy, it can cover all or part of the expenses. In fact our Funeral Planning Survey showed that 1 in 4 funerals were paid for by an insurance policy the deceased had taken out.
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.”
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 for loved ones. You can find out more about your life insurance options in our article How does life insurance work?
How can I put plans in place for my funeral to help my loved ones later
Putting some life insurance in place could be a great idea to help protect your family from your funeral costs when the time comes. If you’re interested in taking out cover with Golden Life Insurance, please get in touch with our Australian-based team of specialists. 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 299 351, Monday to Friday from 8am to 7pm (AEST/AEDT), excluding NSW public holidays.