Sam McConkey, co-founder of funeral and cremation service Bear, said a funeral doesn’t have to cost a fortune. (Credit: Bear/Getty)
Australians are being urged to tell their loved ones their funeral wishes to avoid being forced to make decisions that could cost thousands of dollars. Death is a sensitive topic and some may be uncomfortable putting a price on the passing of a family member, partner or friend.
It may feel strange to discuss the cost of a coffin, a burial plot, or even how much you’ll put behind the bar at the wake. Sam McConkey, co-founder of funeral and cremation service Bear, told Yahoo Finance that too many Australians rush into these details and end up getting burned when they finally receive the bill.
“Death is often tragic, but it’s rarely an emergency. But people tend to feel it is an emergency and want to start doing things to ease that burden a little bit,” he said.
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“Doing something about it can mean choosing the first funeral home you spoke to, or feeling the need to move forward and going down a more conventional funeral route, which in turn creates an environment where you’re more likely to spend more or less money.”
Mr McConkey urged Australians to get quotes from two or even three companies for different aspects of their funeral or memorial service, saying this would help them decide what was best for their finances.
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He added that some services have costs that come as a “surprise at the end,” which is another reason why getting quotes up front is so important.
Get an estimate in advance [be] “If you’re not really clear about what you’re paying for, it can get out of hand,” he explained to Yahoo Finance.
He said cremation services cost about $3,000, while a traditional burial starts at around $7,000 and can quickly go beyond that depending on the burial location and the casket used.
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How to put a price on someone
This is a strange concept and some people may not want to appear “cheap” when selecting services such as casket type and venue for their loved one.
But Bear’s co-founder wants Australians to know that the amount you pay for a funeral has no bearing on how much you loved the person who died.
Pete, who lives in Sydney, saw this first-hand when he was heavily involved in the funeral of a friend’s daughter.
The 67-year-old was shocked to see his normally “practical” and “logical” friend make quick and rash decisions at the farewell party.
“He ended up paying a lot of money for the funeral,” Pete explained to Yahoo Finance.
The young woman’s funeral ultimately cost $15,000 but the Sydney resident said he could have had a similar farewell for a fraction of that cost with more thought.
This has remained so strong for him that he is having “difficult” conversations with his family about how he wants to pass away, as he doesn’t want to put all the decision-making power on their shoulders.
“I won’t let that happen to my daughters or my grandchildren. I’m going to be mindful of all of that so they don’t succumb to the emotions of the moment,” he said.
How to avoid funerals that cost tens of thousands of dollars
McConkey offered some important tips to remember as you work through grief:
Ask for prices up front: Before agreeing to anything, be sure to thoroughly review quotes for all aspects of your farewell party to ensure there are no surprises at the end.
Get multiple quotes: It’s hard to know how much a funeral, casket, funeral director or venue will cost without comparing prices. This is hard to do when you’re grieving, but you could end up paying more than necessary.
Traditional is not necessarily better. It has been around for decades, but that doesn’t mean you have to follow trends. Instead of having a traditional funeral beforehand, you can have a ceremony after the cremation. That way, you can save a lot of money.
DIY services: If you don’t have the funds to rent a professional venue, space or church, you can also hold your meeting at home, in a park, or at a pub.
Consider prepaying your own funeral expenses, which can significantly reduce the financial burden on your loved ones when you pass away.
Talk to those closest to you: Letting your family, partner, friends and colleagues know what type of farewell party you would like will reduce stress and pressure for them and ensure you don’t pay for services you don’t need.
Paying for funeral expenses in advance can help you now
Paying for your funeral in advance not only gives your loved ones emotional and financial peace of mind, it also helps you.
Money paid up front for a farewell party isn’t subject to the pension asset test, which financial adviser Alex Jamieson told Yahoo Finance could have knock-on effects on payments and entitlements.
“A prepaid funeral is essentially a lump sum of money paid to a funeral director for set fees and services, and is usually not refundable,” Jamieson said.
“Pension Centrelink has said ‘we’re no longer assessing it as an asset’, so if someone pays $10,000 in advance for funeral expenses, that reduces the assets that are subject to the means-test assessment.”
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