Despite an influx of commercials during daytime TV encouraging people to plan their own funerals, research has discovered the majority of Australians aren’t intending on paying for their own funeral. In fact, 60 per cent of the population, or 11.2 million, will leave the bill for a family member or a loved one.
Research conducted by finder.com.au surveyed 2,005 people with just 14 per cent expecting their life insurance to cover the cost of their funeral. A further 8 per cent selected funeral insurance as their preferred payment method.
Just 4 per cent of Aussie adults have funded their own funeral through a prepaid plan, while a further 4 per cent are in the process of paying off their funeral through a plan. Interestingly, one in 10 people say they’re not planning on having a funeral or that they’re donating their bodies to research when they die.
The research also looked at which Aussie states were more organised when it came to preparing for their own funerals. Those living in New South Wales proved to be the least organised, with 65 per cent of residents not planning on paying for their funeral before they die. Meanwhile, those who reside in Queensland and South Australia are said to be the most responsible, with each state recording 47 per cent of people planning to fund their funeral.
Having said that, South Australians are the least likely to have already paid for their funeral in full, While Western Australians have more prepaid funeral plans than any other state.
And while funerals are typically something older people in Australia think about, students are more likely to rely on their life insurance. In fact, 21 per cent of students will do so, compared with just 6 per cent of retirees. Meanwhile, Baby Boomers are still ahead when it comes to funeral insurance, sitting on 10 per cent compared to 6 per cent of those from Generation X and 7 per cent of Generation Y.
Interestingly, men are least likely to plan for their funerals, with 62 per cent not paying for funerals compared to 58 per cent of women.
“It’s concerning that the vast majority of Aussies – older generations included – aren’t considering the cost they may be leaving behind when they pass away,” Bessie Hassan, Insurance Expert at finder.com.au said. “Although morbid, it’s important for Australians to think about the future when planning.”
The average funeral in Australia costs around $7,449, although the cost can increase or decrease – depending on which city or location you live in.
“Funerals in Australia can cost thousands of dollars and leaving relatives to foot this bill could be potentially damaging to their bank accounts,” Hassan added. “Something to consider is a prepaid funeral plan or a funeral insurance policy with capped limits which allow you to pay in increments ahead of time.”
The latest research comes as Sydney was found to be Australia’s most expensive city to die in, with funeral costs increasing by 10 per cent in the past year. Meanwhile, Tasmania was found to be the cheapest state to die in, with an average funeral there costing $6,832.