There are a number of organisations which offer funeral plans or bonds; most commonly funeral directors will offer the plan and provide the services themselves, but some insurance companies and non-profit organisations such as charities also offer this service. It is however advisable to take out a plan with an organisation registered with the Australian Funeral Directors Association (AFDA).
The AFDA was set up to protect consumers from exploitation and financial loss due to poor business practices of funeral directors. The AFDA set certain criteria to which registered funeral plan providers must adhere; these rules aim to ensure that your money is as safe as possible, even with the inherent risks of funeral plans (such as the company going out of business before your death). Companies that are registered with the AFDA tend to be specialist funeral planning organisations, often linked to local funeral directors.
Some insurance companies also offer funeral plans, but many do not, recommending their life insurance policies instead. Life insurance differs from a funeral plan, in that it pays a sum to your relatives upon your death, rather than pay your funeral director directly, to cover the cost of your funeral. Purchasing a plan from a company which specialises in providing funeral plans may offer a more personal service however, and they may be more able to offer your relatives advice and support when coping with the bereavement.
Whilst your closest relatives are dealing with the news of your death, they will need to arrange details of the funeral. In addition to the stress and bereavement caused by your death, the prospect of spending days comparing the price and service of local funeral directors can be draining and exhausting. Purchasing your own funeral plan in advance enables you to ease the strain on your loved ones, as well as shop around for the best deal and best service.
When comparing plans it is important to consider more than the price; details such as the benefits included, whether the planner works with your local funeral director, and whether 'third party' costs (costs which are external to those of the funeral directors, such as for grave diggers and religious ministers) are included, are all important. You must make sure that you have given details of your plan to at least one of your nearest relatives, so that they can inform your funeral director once you (the plan holder) have died.
