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Funeral Plans and Pre-paid funeral plans

Funeral Plans and Pre-paid funeral plans

Most Sydney funeral directors offer funeral plans. My advice to you is to tread carefully. Choosing a funeral plan can be as complex as working out which mobile phone contract you should take, and even worse than trying to decide which internet provider to use.

Why you might consider a funeral plan

You cannot rule from the grave but you can certainly have a funeral plan which assures what is going to happen at your funeral.

Take these two examples:

  • One very stylish client who mentioned that “When I go, my relatives will give me a budget funeral ceremony and give everybody a cup of tea and a biscuit. My rellies don’t have much style and they won’t want to spend their inheritance”.
  • Another client who is quite ill with an auto-immune disease. She is concerned that her son will have to arrange her funeral. She is concerned about the trauma it will cause him, as he has his own set of problems, and she is not confident that he will do it well.

Both of these clients are candidates for a funeral plan. What about you?

In the main, there are two types of funeral plans, funeral insurance, and pre-paid funeral.

At Picaluna we do not recommend, or even offer, funeral insurance.

  • With funeral insurance, you are betting the insurer that you will die sooner than the Insurer thinks you will. Premiums vary according to entry age, gender and smoking status.
  • On average, if you took out a $6,000 policy at 60 years old, by the time you get to 82 (the average lifespan of an Australian male) you will have paid out $26,500. Ouch!
  • What’s worse is that when you took out the policy, a $6,000 funeral would be quite a fancy event. Because of inflation, the $6,000 payout will not even buy you an average funeral today, where the average funeral costs approximately $7,500.

Pre-paid funerals

We are happy to offer you a prepaid service. Below is some insight into the process of organising for a Pre-Paid funeral:

  • The Funeral Arranger meets with you and designs your funeral service. You specify every aspect of your funeral ceremony that we would normally provide. We will map out everything, including cremation or burial, the venue cost, the funeral celebrant cost, the funeral service, the cremation cost, or the burial fee, the coffin, the flowers, the hearse and the Death Certificate. We map out any special requests like a cardboard or eco coffin, or even a natural burial. This information is captured in our Funeral Arrangement software.
  • There is a one-off setup fee for a pre-paid funeral. At Picaluna we focus on exceptional customer service at an affordable price, with no hidden fees.
  • You pay for your funeral ceremony at today’s rates, and your money, is invested for you in one of the 7 NSW Government approved trusts which are registered with the Department of Fair Trading.
  • Picaluna does not have your money, it’s protected in the trust. The trust invests your money in order for it to grow with inflation. When the time comes for your funeral, the trust pays Picaluna to provide the services you specified in your contract.
  • What happens if you outlast Picaluna? That’s why your money is in trust to safeguard your money. The trust company or your executor engages another funeral director and the trust pays them.

If all this sounds a bit complex, don’t hesitate to Picaluna and talk with one of our helpful funeral directors.

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