Prepaid Funerals: Should I pay upfront or in instalments?

When it comes to getting your affairs in order, one key component is pre-planning your funeral. We’ll get to why in just a minute but it’s important to know that you don’t have to have all the funds immediately at your disposal. Here at Willed, we offer two types of payment options for those:

1. You can either pay the lump sum upfront, or
2. Pay in instalments. 

And, in this guide, we will explain the pros and cons of each option. We will also answer a bunch of questions you might have when it comes to prepaying for a cremation.

Why should I preplan my funeral?

Planning and paying for your funeral in advance saves your family money, time and future stress. We’ve compiled a list of FAQs in this comprehensive guide below, so you don’t have to go sifting for information (when you could be doing so many other things, like… living your life!)

Upfront v Instalments – Which one is better?

There is no one ‘right’ or ‘preferred’ way to prepay for a funeral.

In simple terms, paying upfront means you don't have to worry about any further payments. It’s a quick and easy option for those who have the funds available in their current budget. Paying upfront also means you won’t have to manage your budget on an ongoing basis.

On the other hand, instalments may be preferable for some, as you may not be able to pay the full cost at the time. Additionally, if you’re receiving a pension, your payments can be aligned with your pension payment – so that’s handy to know, too. There is a small fee for paying in instalments, but it’s made manageable as it’s split across the total number of payments.

How many instalments are we talking about?

Instalments are typically paid fortnightly over three years, which would equate to approximately 78 payments. You can elect to pay monthly if that works better for you. Alternatively you might decide on your own payment schedule.

What happens if I miss a payment? 

Life happens. We can either charge double the following fortnight, or we can extend the number of payments (from 78 to 79, for example). The best thing to do is call your prepaid funeral arranger and have a chat with them.

What happens if I die before the instalments are completed? 

If you pass before making the final payment, we will still commence our service and arrange the respective paperwork. We will also speak with your family so they can pay the balance on your behalf (at the price you locked in).

What happens to my money? Is it secure? 

Rest assured that your funds are most definitely secure. Our prepaid funeral plans are backed by Foresters Financial, an APRA-approved Friendly Society that’s been around for 170 years. This means that your money is held nice and safe in a secured account until it’s required.

Will my family have to pay anything extra?

No.* Prepaying means you are locking in today’s price, with nothing more to pay in the future. This way, your loved ones are protected against inflation, which saves everyone money in the long run.

*In rare instances, an additional charge may need to be paid if you pass away a considerable distance from the residential area specified in your prepaid funeral plan. For example, if you relocated from metro Melbourne to regional Victoria. (This is why it’s so important to update your plan if anything changes).

Can I still lock in the price if I pay in instalments? 

Yes, you lock in today’s price, even if it takes a little while to pay the full fee. That’s #winning in our book!

What if I change my mind?

We understand that planning a funeral requires a lot of thought. After you sign up to prepay your funeral, we offer a 30-day cooling-off period in which you can cancel your contract. You will receive a full refund of any money you have already paid.

Can I set up a direct debit via BPay? 

You absolutely can. But keep in mind that a BPay direct debit will require a higher first instalment, followed by smaller regular instalments. On the flip side, a regular direct debit will mean you make fortnightly payments of an equal amount.

How else can I pay?

You can pay online, via our secure payment portal, or over the phone. Please call us on 1300 945 533 to pay in full or to set up a payment plan.

Wrap up

Planning your final farewell is no small feat, but when you choose Willed, you’re locking in a great price, with people who care. Sure, you may want to tick those boxes ASAP – but it’s important to be thoughtful when planning a funeral for yourself or a loved one.

Take the time to mull everything over, compare prices if you need to, and ensure you enter consultations with a list of questions so you have all the information you need to make considered decisions. And once you’re done? Well, then you can continue living your life, with the knowledge that your loved ones won’t have to bear the financial or emotional brunt that comes with planning a funeral.

Looking to discuss payment plans? Contact the helpful Willed team on 1300 945 533 or [email protected] today.

Disclaimer: The content of this blog is intended to provide a general guide to the subject matter. This blog should not be relied upon as legal, financial, accounting or tax advice.