The death of a loved one often comes unexpectedly. The emotional toll can make it challenging to deal effectively with the logistical issues, such as arranging the funeral and managing the deceased’s estate and affairs.
Funding the cost of a funeral can be a challenge. Because the death is usually unexpected, it is often not budgeted for. The deceased may not have made adequate financial and/or logistical preparations for their early departure, leaving you to work out how to pay the bill.
The average cost of funeral is $8,000. Costs tend to vary between $4,000 for a basic cremation, to upwards of $20,000 for more elaborate funerals involving ornate caskets, flowers, burial plots and headstones.
If you are arranging the funeral, then typically you will need to sign the contract with the funeral director, meaning you will be responsible for paying the costs involved.
Funeral costs include:
- Fees for the funeral director for planning the funeral
- Transport for the deceased
- A coffin or casket
- Death certificate
- Preparation of body for viewing
- Cemetary or crematorium fees
- Headstone or urn
- Newspaper notices
- Catering for the wake
- Printing of funeral ceremony booklets
Sometimes a deceased will have made provision for their own death, such as through a funeral bond, a dedicated savings account, a pre-paid funeral plan, funeral insurance, superannuation or life insurance. In such cases, there may be adequate money available in the deceased’s estate to pay for the funeral. Some life insurance policies contain a funeral benefit which may be paid within 3 days of death. The Executor of the deceased’s estate will advise whether any of these options are available to you.
Even if the deceased has made provision for the financial costs of their passing, there can be a gap between the time you need to pay for the funeral and receiving the money from the deceased’s estate. Fortunately, many financing options are available to assist you meet the costs involved with a funeral.
Ways to pay for a funeral at short notice include the following:
- Cash or savings can be quickly accessed if available, but given the significant costs, may leave you without adequate funds available for other purposes
- Credit cards are a quick source of financing, but can leave you with long-term ongoing repayments
- Personal loans can offer cost-effective financing but take time to arrange
- Home equity loans are often a cheap source of financing, if you have equity available
Credit cards, personal loans and other types of loans often require a good credit rating and come with ongoing repayments which may stretch over many years if not paid off earlier. They can also leave you without credit available for other purposes, including other emergencies.
Generally, if you do not already have a credit card or loan approved, you will need to make an application, which could result on a check on your credit history. The application for credit will be noted on your credit file, which could make it more difficult to obtain credit in the future. If you have a poor credit history, you may not be approved.
If traditional financing isn’t an option, then a Spotter loan could help you pay for the funeral and ease your financial burden.
Spotter can help you with a loan of up to $5,000 to assist with the expenses of a funeral. Loans be approved in as little as 60 minutes of us receiving the documentation from you, and you could receive the funds within only 24 hours.
A Spotter funeral loan can be repaid over a period of 3 to 12 months, helping you spread out the financial cost and make it easier to manage.
If you need a funeral loan, contact us at Spotter to find out how we can help you.
Here’s what a loan might look like
Here’s what a small loan might look like…
You’re after a loan for $1,000 for medical or dental bills. Your are looking to repay the loan back after 6 months and are happy to make fortnightly payments.
In the above example You’ll pay:
- Loan Amount Financed: $1,000
- Establishment Fee: $200 (set by NCCP at 20% of the loan amount)
- Monthly Permitted Fee: $40 per month charged on the anniversary of the loan
- Amount of Credit of the Loan: $1,240
- Total Amount of Interest Payable: NIL
- Direct Debit Fees: $25.74 ($0.99 per transaction)
- Total amount of repayments: $1,440.00
- Nominal Percentage Rate (Interest) per annum: 0% as defined by NCCP
Comparison Rate: 160.0571% as defined by NCCP
Here’s what a medium loan might look like…
You’re after a loan for car repairs for $2,500 and are looking to make payments back on a weekly basis over 2 years.
In the above example You’ll pay:
- Loan Amount Financed: $2,500
- Establishment fee: $400 (Set by NCCP)
- Amount of Credit of the Loan: $2,900
- Total Amount of Interest Payable: $1,590.86
- Repayments: 103 x $43.19 + $42.31 (a final payment)
- Total amount of repayments: $4,490.88
- Nominal Percentage Rate (Interest) per annum: 48% as defined by NCCP
Comparison Rate: 65.5138% as defined by NCCP
For loans under $2000 the minimum repayment term 90 days, maximum repayment term 12 months.