28/03/2026
F U N E R A L P R E P A Y M E N T
I was chatting to a friend the other day at one of our local shops, and she had no idea funeral prepayments were even a thing.
She was surprised you can actually put money aside specifically for funeral costs. It’s actually really common when people are retiring and have savings available.
As we got talking, I mentioned we’ve been doing this a long time, so it’s something we guide people through often. A funeral prepayment is quite different to funeral insurance. Insurance is risk based. You can pay premiums for years, sometimes decades, and end up paying far more than what’s paid out, with nothing coming back. We’ve also seen situations where payouts go to a named beneficiary and aren’t used for funeral costs at all.
With a funeral prepayment, what you put in is your money and is available when it’s needed. If the funeral costs more, the difference is paid at the time. If it costs less, the balance goes back to your estate.
Up to $10,000 is exempt from Residential Care Subsidy asset testing, which is why many people choose to set aside that amount. A minimum deposit of $500 is required to get started.
If you’d like to know more, visit our website or book a chat with our team to start the conversation.