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Important Financial Considerations for Funeral Plans

Important Financial Considerations for Funeral Plans

Article by Jeremy Smith

The average Australian funeral costs between ,000 and ,000. These are only the current costs; rates may rise at any time with inflation. Today, it is possible to pre-purchase a funeral plan. Any adult can buy them at any time, even during early adulthood. Some people are finding that their pre-purchased arrangements are not sufficient to cover final disposition costs after death. For example, a plan that was purchased 50 years ago for ,000 is not sufficient today to cover all costs. This will leave the surviving family members to pay any remaining amount.

Prices for nearly everything are increasing, and suddenly spiking upward. This is a global effect that has Australian citizens worried about trying to make their final arrangements. It is still possible to purchase a pre-arranged plan from a funeral home, but predicting the time of death is impossible for most people, meaning their plan will likely be insufficient at the time of death. Nobody wants to leave their family with a large final bill, so it is important to find a strategy.

Fortunately, there is an easy solution to all of these issues: funeral or life insurance. Both of these options provide a more reliable way to make final plans. Life insurance can be purchased at any time during adulthood. It can also be arranged for children, which is monetarily beneficial to parents if they must experience the tragedy of a child’s death, and planning a funeral. Most adults who purchase life policies will choose a generous limit amount. At the time of death, the designated sum is paid to surviving family, or directly to the mortuary handling the final arrangements.

Funeral insurance is similar to a life policy. The difference is, a life policy is given to survivors to use for anything they wish, which could include personal purchases. Insurance for funeral is only intended for a burial, ceremony and any other necessary or pre-planned procedures. It is important to have one or both of these types of coverage. Not only is it difficult to determine how much the disposition and services will cost, but it is also impossible to determine where death will occur. Some people have died while out of the country, and their body had to be shipped back home. Shipping costs are expensive, as is embalming in some countries. There are many formalities and fees to release, ship, and disinfect a body for shipping. It is important to be sure the policy will allow enough, that inflation and unexpected costs will be covered.

About the Author

Author is a freelance copywriter. For more information about a Funeral plan, please visit http://www.aussie.com.au/.