« back to resources

Calculate the difference between a Prepaid Funeral Vs. Funeral Insurance

Most of us discover the costs of a funeral when we are faced with arranging the funeral for a loved one. Funerals can be elaborate and expensive or basic and affordable which are discussed further in our article How much does a funeral cost? There are a multitude of ways to pay for a funeral as well. With the beneficial option of paying before your death to assist your family financially when the time comes.

In this article we help you compare the cost of a prepaid funeral to funeral insurance using the Bethel Funerals Prepaid Calculator.

What is a Prepaid Funeral?

Prepaid funeral plans allow you to pay in advance for your funeral. You can choose to pay in full or contribute regular instalments over a time period. Usually a deposit is required but this can be negotiated with your funeral provider based on the amount you pay up front. There is also the option to pay up front for the funeral and leave the details for your loved ones to choose later. 

Features of a Prepaid Funeral

  • Cost: Costs are fixed, so you pay today’s price and the cost stays the same even if your funeral is not for many years.
  • Ongoing Costs: Depending on inclusions costs will vary. However once paid in full there is no further payments required.
  • Payment: You are able to pay up front in a lump sum or through instalments over time.
  • Your Choice: You can choose the funeral service you want. You can control the arrangement requirements such as the flowers, casket, location and tailor it to suit your budget.
  • No Extensive Paperwork: With no health checks or extensive paper work the process is quick and simple.
  • Entitlements & Pension: A prepaid funeral may be able to help you obtain a full or part pension and has no negative effects.
  • Cheaper alternative: Compared to other funeral products such as a funeral bond or insurance, prepaid funerals can be cheaper if you live for 5-10 after purchasing.
  • Peace of mind: by planning and paying for you service you are setting your affairs in order and when the time comes, you are helping your family with the cost of your funeral.

Comparison to Funeral Insurance

Funeral insurance is very different to a prepaid funeral as you are purchasing insurance to meet the costs of funeral, not putting money away into a secured fund. A funeral insurance policy will give your family a lump sum payment to help pay for funeral and associated expenses when you die. However the premiums associated rise over time and you can eventually end up spending more in premiums than your cover amount. To find out more features of Funeral insurance read the article Funeral Bonds Vs. Funeral Insurance.

Prepaid Funeral vs Funeral Insurance Calculator

We have created a tool for your to compare funeral insurance and a prepaid funeral. Click on the link below and experiment with our comparison calculator to compare the costs of a prepaid Bethel Funeral with Funeral Insurance.


calculator and pen on paper

*This is a comparison tool and guide only and is not to be substituted for specific financial advice. We recommend that you consult your financial advisor for any specific financial advice.

Find out more about prepaid funerals,  or if you decide that a Prepaid funeral would suit your needs, the team at Bethel would be happy to discuss. Please contact us on 1300 881 473 or submit an email enquiry.

Subscribe to our email list to receive our latest news, articles and supportive resources.