💡 Prepaid Funerals, Funeral Bonds & Funeral Insurance

FuneralSmart – Smarter Choices. Peace of Mind. Powered by eziFunerals

🕊 Why Australians Are Rethinking How They Pay for Funerals

Funerals are becoming more expensive each year, with costs now ranging from $4,000 to $15,000 depending on where you live and what kind of farewell you choose.

To prepare financially, Australians often turn to one of three options:

1. Prepaid Funeral Plans
2. Funeral Bonds
3. Funeral Insurance

But which option makes the most sense for your family — and your wallet?

That’s what FuneralSmart, powered by eziFunerals, is here to unpack clearly.

💰 1️⃣ Prepaid Funeral Plans

A Prepaid Funeral Plan lets you arrange and pay for your funeral in advance, directly with a funeral director. You agree on today’s price and lock in your wishes for the future.

✅ Benefits

• Locks in today’s prices, protecting against inflation.
• Tailored to your preferences (burial, cremation, venue, music, etc.).
• No ongoing payments once settled.
• Funds held securely in a regulated trust or bond under state law.

⚠️ Considerations

• Usually tied to one provider (though most allow transfer).
• May involve small admin fees if cancelled or changed.
• Not ideal if you move frequently or expect to relocate interstate.

🔗 Learn more: Find Lost or Unclaimed Prepaid Funeral Plans

🪙 2️⃣ Funeral Bonds

A Funeral Bond is an investment specifically set aside for future funeral expenses.

You contribute money (lump sum or instalments) into a bond managed by a financial institution, and the proceeds can only be used for funeral costs.

Unlike prepaid plans, funeral bonds aren’t tied to one funeral director. You can nominate your preferred provider later or let your family choose when the time comes.

✅ Benefits

• Flexible and portable — you choose the amount and can change providers.
• Earnings are tax-free if the bond is compliant.
• Centrelink exempt — doesn’t affect Age Pension assets if under the limit ($15,000 per person in 2025).
• Ideal for those who want to save gradually without insurance premiums.

⚠️ Considerations

• Does not lock in today’s funeral prices.
• Returns depend on investment performance.
• You’ll still need someone to arrange the service.

🔗 Explore options through Funeral Bonds and Prepaid Plans

🧾 3️⃣ Funeral Insurance

Funeral Insurance is a policy where you pay regular premiums to receive a payout when you pass away.

It may seem easy, but it’s often the most — many policyholders pay more in premiums than their families receive back.

✅ Benefits

• Immediate coverage after waiting period.
• Simple to apply (no medical exam).
• May provide quick cash for final expenses.

⚠️ Risks

• Premiums increase over time — you could pay thousands more than the payout.
• Missed payments mean no cover.
• No price lock-in — funeral costs may rise while your cover stays fixed.
• Some policies exclude pre-existing conditions or limit early claims.

🔗 See related advice: Funeral Insurance in Australia – Worth It or Waste of Money?

📊 Quick Comparison Table

Feature	Prepaid Funeral	Funeral Bond	Funeral Insurance
Payment Type	Once-off or instalments	Flexible contributions	Monthly/annual premiums
Linked to a Provider?	Yes	No	No
Price Locked In?	Yes	No	No
Refund/Cancellation	Limited	Withdraw anytime (may affect returns)	None
Investment Earnings	Not applicable	Yes	No
Centrelink Exemption	Yes	Yes	No
Best For	Those who want certainty and control	Those wanting flexible savings	Those needing short-term cover

(Data verified via Australian Funeral Index (AFI))

💡 The Smartest Approach for 2025

If you want:

• Certainty and control: → choose a Prepaid Funeral Plan
• Flexibility and savings growth: → consider a Funeral Bond
• Short-term protection only: → use Funeral Insurance temporarily

Many Australians use a combination of prepaid plans and funeral bonds, allowing for secure, regulated funds while keeping flexibility if they move or change preferences.

Start by comparing actual prices through the

👉 FuneralSmart Comparison Tool

and calculate your savings with the

👉 eziFunerals Funeral Cost Calculator.

⚖️ Legal & Consumer Protections

In Australia:

• Prepaid plans and funeral bonds are governed by state trust and consumer laws.
• Insurance is regulated by ASIC and must provide clear disclosure of costs and exclusions.

Consumers have the right to:

• Request written documentation of all terms.
• Transfer prepaid funds under fair conditions.
• Access a cooling-off period for most new plans.

See:

• Funeral Directors and the Law in Australia
• The Funeral Bill of Rights

🧭 The Smarter Way to Decide

1. Compare real costs with FuneralSmart.com.au.
2. Estimate future prices using the Funeral Cost Calculator.
3. Review all options — Prepaid Plan, Bond, Insurance — before committing.
4. Read every disclosure statement and check refund rules.
5. Talk to a trusted independent funeral director via eziFunerals’ network.

🪦 The Bottom Line

Funeral costs are inevitable — confusion doesn’t have to be.

Whether you prepay, save through a bond, or insure short-term, the key is clarity, control, and trust.

Plan Smarter. Spend Less. Save More.

FuneralSmart – Smarter Choices. Peace of Mind.

Powered by eziFunerals.com.au.

🧠 Frequently Asked Questions

Q1: What’s the difference between a funeral bond and a prepaid plan?

A prepaid plan locks in today’s prices with a specific provider; a funeral bond is a savings investment you can use with any provider later.

Q2: Are funeral bonds safe?

Yes. Funds are held in regulated trusts managed by approved financial institutions.

Q3: Can I have both a prepaid plan and a funeral bond?

Yes — many people prepay the service itself and keep a bond for extras like flowers or travel.

Q4: How does Centrelink treat funeral bonds?

They’re generally exempt from the assets test up to the allowable limit (about $15,000 per person in 2025).

Q5: Is funeral insurance ever a good idea?

Only if you need short-term coverage and can afford rising premiums.