Don't let exaggerated funeral costs make your decisions

Don't let exaggerated funeral costs make your decisions

By Gillian Boyes, Chief Executive, Funeral Directors Association of New Zealand

If you've watched television over the last few years, you've probably seen advertisements suggesting funerals cost $30,000 or more.

Those figures can be alarming. They can also leave people wondering whether they need expensive funeral insurance to protect their family.

The reality is rather different.

The Funeral Directors Association of New Zealand recently surveyed funeral homes across the country to better understand what families are actually paying today. We found that a moderate funeral with around 50 people attending costs, on average, about $11,700 for a cremation and $14,300 for a burial. Of course, every funeral is different, but those figures provide a far more realistic picture than the numbers often used in advertising.

That's one of the reasons we've created Now For Them, a new funeral prepayment plan established by the Funeral Directors Association and available exclusively through our member funeral homes.

Unlike funeral insurance, which is designed by insurance companies, Now For Them has been designed by the funeral profession itself. We understand what funerals really cost because we arrange them every day.

Rather than paying insurance premiums that can continue for many years, Now For Them allows you to simply put money aside towards your own funeral. The account is established in your name and your contributions are held independently of your funeral home, giving you flexibility if your circumstances change.

For many families, that's reassuring. They know money has already been set aside, reducing the financial pressure at what is already a difficult time.

Planning ahead isn't only about money, though.

One of the greatest gifts you can leave your family is removing the burden of difficult decisions. Whether you would prefer burial or cremation, a quiet family gathering or a larger celebration of life, discussing those wishes in advance gives your family confidence that they're honouring what you wanted.

Many people tell us they don't want "a fuss". But funerals aren't really for the person who has died—they're for the people left behind.

Our recent grief research found that 77% of New Zealanders believe funerals make a positive difference to the grieving process. They provide an opportunity to come together, share memories, support one another and begin adjusting to life without someone they love.

If you're considering putting money aside for your funeral, it's worth talking with a Funeral Directors Association member funeral home. They can explain your options, provide an estimate based on the type of farewell you would like, and help you decide how much to contribute.

One final point is worth remembering. Under current Ministry of Social Development policy, the first $10,000 set aside in an eligible funeral plan (and Now For Them is one) remains exempt from the asset test for a residential care subsidy, making prepayment a practical option for many older New Zealanders.

Planning ahead isn't about expecting the worst. It's about making thoughtful decisions while you can.

Because when the time comes, your family deserves to spend their energy remembering your life—not worrying about how to pay for your farewell.