Financially preparing for your own funeral might sound a bit morbid. However, it can be a sensible and often generous thing to do.
If you don’t financially plan for your funeral, the costs of your funeral will have to be covered by those you leave behind. The average funeral can cost thousands of dollars. Your loved ones may not have this type of money laying around and may have no choice but to resort to hefty loans.
Funding your own funeral takes away this financial burden. You can also set your own budget – and, in some cases, pay early to beat rising funeral expenses.
Some of the common ways to fund your own funeral include:
- Setting aside savings to be contributed towards your funeral.
- Taking out a life insurance scheme that will pay compensation when you die to cover funeral costs.
- Opting for a pre-payment funeral plan that allows you to pay for your funeral in installments in advance.
- Investing in shares or assets that can be used to pay for your funeral.
You can start planning your funeral at any time. The earlier you start planning, the more time you’ll have to accumulate necessary funds. Make sure to tell your loved ones about any financial plans you may have in place.
Just how much money will you need to raise? Below is a graphic that details all of the costs of a funeral. Remember – this is just the average. You can spend much more on your funeral or much less depending on what type of funeral you want.