There are many life events that can hit your wallet hard. Weddings, births and purchasing a home all come to mind. These are often the most joyous occasions in a person’s life, the ones that you plan for years in advance.
But what about unhappy events? Few people like to think about losing a loved one or passing away themselves. However, a death in the family can cause financial worry for those left behind.
According to the Funeral Directors Association New Zealand, the average cost of a funeral is between $6,500 and $7,000.1 This figure is much higher than the $2,000 Work and Income funeral grant that you may qualify for. As a result, many families may struggle to pay for funeral arrangements.
But why the high cost?
There are many items associated with funerals, with some varying widely in price. For example, coffins can range from around $1,000 to $10,000. Council-controlled burial plots can also be pricey. Depending on where the deceased is buried, plots can cost up to $5,000 and don’t always include digging fees.
In addition to these high ticket items, there are many other aspects to funerals that can quickly increase the overall cost. Funeral director fees, clergy or celebrant donations, a memorial attendance book, order of service booklets, catering, flowers and transportation for the family and the deceased all add up. There can also be fees associated with obtaining a copy of the death certificate or placing an obituary in your local newspaper.
The importance of planning
Unsurprisingly, only 5% of Kiwis plan for their funerals.1 It’s difficult to think about death and leaving your loved ones behind. But given the cost, it makes sense to consider your family’s financial strength if you were to unexpectedly pass away.
Talk to your family or close friends about your last wishes. What you want may be very different from what they imagine, potentially impacting the final costs. There are seemingly endless options when it comes to choosing things like caskets, urns, or flowers, and family members can easily become overwhelmed in the moment. Knowing what choices you’d make may simplify the funeral planning process for those you love.
Funeral insurance may be a great way to help ease your loved ones’ financial stress during an emotionally difficult time. A lump sum is paid in the event of your death, and can be used to cover funeral costs or anything else your family may need. Some policies may also offer optional extras, such as monthly payments for household expenses, extra lump sums paid in the event of an accidental death, or payouts for accidental serious injuries.
Thinking about death is never easy, but doing so may provide some peace of mind to your loved ones. Finding ways to ease their financial burden now can save them hours of stress should the worst happen.
Interested in Momentum Life Funeral Insurance? Request a quote from one of our friendly agents.
Disclaimer: The information provided in this article is of general nature, and does not take into account your personal situation. You should consider whether the information is appropriate to your needs or seek professional advice, where necessary.