The Complete Guide to Preplanning Your Funeral

Thinking about your funeral, let alone pre-arranging it, is a difficult thing to do. However, it’s one of the greatest gifts you can leave your loved ones so you have made a good decision by starting to look into options for preplanning your funeral.

Prepaying or preplanning a funeral means that everything is taken care of in advance, and that your family won’t be financially burdened or unnecessarily stressed by having to make difficult decisions about the funeral when the time finally comes.

We’ve put together this guide to give you all the information you need to assist you in making the right decision.

Why should I consider prepaying for my funeral?

Death is not the easiest subject to talk about. No one likes to think about life without their loved ones, much less plan for it. It might feel uncomfortable to discuss funeral plans, but having a plan in place is really important. Prearranging your funeral is a thoughtful way to support your family during a tough time. By planning carefully, you ensure your funeral reflects your wishes and protect your loved ones from the added stress that comes with making decisions in the midst of grief.

Although everyone is different, and there may be more or less advantages for some, there are three primary reasons why you should consider arranging a funeral in advance:

A. Save money:

Funeral costs keep going up, but if you prepay, you lock in today’s price. That means your family won’t have to worry about paying more later on.

B. Save your family stress:

Planning ahead takes the pressure off your family. They won't have to guess what you would have wanted, and they can focus on grieving and healing instead.

C. Make your wishes clear:

By planning in advance, you get to say exactly how you want your funeral to be. Whether it’s a traditional service or something more unique, your family will know they’re honouring your wishes and celebrating your life in the way you wanted. Planning ahead also makes it possible to record details such as the location, music, readings, or personal touches like photos and flowers that reflect your life and personality.

What are the options for prepaying a funeral?

When preplanning a funeral, there are three main options to consider, each with its pros and cons. It's essential to carefully consider each option to understand its implications. For instance, while funeral insurance may offer cheaper monthly payments, it might not provide the most secure option. Opting for a prepaid funeral, on the other hand, ensures peace of mind since once it's paid, there are no further payments required.

Funeral insurance: This option provides a lump sum payment to assist with funeral expenses. The monthly cost typically ranges between $50 to $100, varying based on factors such as age, gender, health, and coverage amount. However, it poses risks such as rising premiums over time and limited coverage for terminal illness.

Funeral bonds: Funeral bonds serve as an investment product to cover funeral expenses, with funds accessible after death. While they can offer exemption from asset and income tests, they come with risks like potential insufficient coverage and the likelihood of increased funeral costs over time. Incomplete payouts may happen if the bond isn't fully paid before death.

It’s worth noting that prepaid funds and funeral bonds can affect eligibility for certain government benefits. However, most are exempt from assets test which means they typically do not impact aged pension or related entitlements. It’s always advisable to confirm your personal situation with Services Australia or a financial adviser.

Prepaid funeral plans: With prepaid plans, you enter a contractual agreement to cover future funeral costs, potentially saving money in the long term by locking in a price. They also often come with flexible payment plan options, including instalments, and a cooling-off period in case you change your mind.

Most prepaid plans require a deposit and allow you to pay the balance in instalments over a set period, usually between 12 and 36 months. Some providers may offer interest-free options for added flexibility, so it’s important to confirm the payment terms with your funeral director.

Among these options, prepaid funerals stand out for their fixed costs, preplanning benefits, and exemption from asset tests. This makes them the best choice for many individuals looking to ensure peace of mind and financial security for their loved ones.

Regulation of prepaid funerals

Regulations around prepaid funeral plans may differ between states. These are generally covered by state and territory consumer laws, which require that prepaid funds are securely held in trust or through an approved investment such as a funeral bond. Prepaid funeral providers must follow strict policies to help ensure your funds are safely managed.

When funds are placed with a friendly society, such as Lifeplan Australia Friendly Society, they’re held in regulated benefit funds that must meet strict management and reporting standards to help keep your investment secure.

Funeral bonds and funeral insurance are regulated financial products in Australia, overseen by APRA (Australian Prudential Regulation Authority) and ASIC (Australian Securities and Investments Commission). These independent regulators set standards for how funds are managed and ensure customers receive clear, fair information about costs and terms.

As a general guide, it’s a good idea to check your state or territory’s consumer affairs website for up-to-date information before you make any arrangements.

How can I arrange a prepaid funeral?

Arranging a prepaid funeral involves a few key steps. You'll want to select a funeral director first. Look for someone who understands your wishes, you can trust, and fits your budget. It's important to get a clear breakdown of fees to avoid any surprises later on.

Before committing to a prepaid funeral plan, take time to research and choose a reputable funeral director. Check that they are licensed and compliant with state funeral regulations, and review their experience and customer feedback.

At Bare, we understand the importance of having a transparent and secure plan in place without breaking your bank. Our team is dedicated to providing affordable and quality prepaid cremation services and we’re here to guide you through the process, ensuring your peace of mind every step of the way.

Once you’ve chosen a prepaid funeral, it’s helpful to understand what your plan usually covers. While exact costs and inclusions can vary between providers and locations, most prepaid funerals include the key elements of a service such as the funeral director’s professional fees, transport of the deceased, a standard coffin or casket, mortuary care, and coordination of cremation or burial arrangements. Prepaid funerals may also involve administrative or trust management fees to ensure your funds are securely held until needed.

Most prepaid funerals can be transferred if you move interstate, although a small administrative fee might apply. Always check how transport coverage works if death occurs outside your area, as additional costs could be involved. Keep a copy of your prepaid contract with your important documents.

Lastly, consider your payment options. Many funeral directors, including us at Bare, offer flexible plans, whether upfront or in instalments. This ensures that prepaid funerals are accessible to everyone while providing the security of a locked-in price.

What is a Bare Prepaid Cremation?

Bare offers prepaid direct cremation, a simple and affordable option for end-of-life arrangements.

To put it simply, a direct cremation is an arrangement with no formal ceremony, and no family or friends are present during the cremation process.

This option comes at a significantly lower cost compared to traditional funeral services as it eliminates additional expenses associated with ceremonies and viewings. We see prepaid cremations as a thoughtful choice for those who want to make sure their family is cared for when the time comes, while still leaving the option to plan a farewell later, if they wish.

A Bare Prepaid Cremation provides a comprehensive end-of-life plan including the setup and management of a Trust account to securely hold funds until needed. When the time comes, your family will have a dedicated arranger to guide them through the entire process. Our online Next of Kin dashboard allows the family to track the progress and status of arrangements at their convenience and our support team is also on deck 24/7 to help with any questions they might have.

A Bare Cremation is conducted privately and respectfully and our arrangements already include a simple eco-friendly coffin. We also take care of all the necessary paperwork, including death registration and official certificates, and ensure that the ashes are returned according to the family's wishes.

While our prepaid arrangement doesn’t include a funeral or memorial service, this allows your family to choose how they’d like to handle it, or, as many do, opt to do nothing at all. We can also help arrange a service when the time comes if needed. If you do wish to prepay for your entire funeral, a Bare Prepaid Cremation may not be the best option for you.

How to buy a Bare Prepaid Cremation.

Bare offers affordable prepaid cremations Australia-wide, which can be arranged online, or over the phone, in minutes. To arrange a Bare Prepaid Cremation online, follow these simple steps:

1. Go to: https://bare.com.au/prepaid-funerals.
2. Select the button that says 'Prepay now'.
3. Select 'Myself - I want to prepay for my own funeral' if you are signing up for yourself or ‘For a loved one - I am prepaying for someone else’ if you are signing up for someone else
4. Fill in the required details and press ‘Continue’.
5. Select payment type: Monthly or Upfront. Here, you also have the option of having the quote emailed to you if you wish.
6. Enter your personal details and add your Next of Kin contact information.
7. Review your prepaid arrangement.
8. Click on the “Click here to sign” box to generate an auto signature.
9. Add your bank details and click the Confirm Payment button. You may pay either by credit card or direct debit from your bank account.
10. You’re all set! Your funds will be debited in line with your nominated billing cycle (upfront or monthly).

If you don't want to make the purchase online, or you still have questions, you can give our friendly Prepaid team a call on 1800 202 901.

FAQs about Bare Prepaid Cremation.

Am I eligible to purchase a Bare Prepaid Cremation?

Yes. Unlike other funeral planning products, anyone can purchase a Bare prepaid plan, regardless of their age or health.

Who holds onto the money I pay?

With Bare, the investment value of your prepaid contract is invested in a regulated Fund with the Lifeplan Australia Friendly Society. The funds are held in your name and we can only access the funds on your passing as part of the pre-paid contract.

How much is a Bare Prepaid Cremation?

The price of a prepaid upfront cremation with Bare averages $3,678*, but personalised quotes are recommended due to differences in your choice of payment frequency and specific location. To get a prepaid quote tailored to your location, please head here.

*This is the national average pre-paid upfront price correct as of October 2025. Please note that prices vary depending on location and payment frequency, and are subject to increase over time. However once a pre-paid plan is locked in, it will remain that price for the duration of the instalment plan. For an accurate quote and cost breakdown for your location, please visit our website.

Are there instalment options available?

Yes, we offer monthly instalments to allow everyone access to affordable funeral services.

What if instalments are not fully paid before death?

We will commence your service and undertake collection and the paperwork process to minimise unnecessary suffering for your loved ones. We will then coordinate with your Next of Kin to pay the balance due – at the price you locked in when you began your instalments.

Are there any extra fees?

There are no extra fees once you have locked in your prepaid cremation. The only instance where there would be additional fees is if you pass away in a different region to your address. In this scenario, there may be additional transport fees payable.

Do you provide an itemised breakdown of the services?

Yes. Your contract will provide a line-by-line breakdown of each service and its cost.

Should I let my Next of Kin know once I have my contract?

Yes. By ensuring your Next of Kin knows and understands your wishes, you will be able to prevent any unnecessary pain and suffering when you pass. If you are in an aged care facility or hospital, it is also a good idea to let someone know that you have a contract with Bare and pass on our contact details so they can contact us straight away.

What if I change my mind?

There is a 30-day cooling-off period during which time you may change your mind. If you cancel your contract within this 30-day period, you will receive a full refund.

What if I die away from home?

In this instance, your family will need to touch base with us to arrange for transport to ensure timely collection. We will make all the necessary arrangements, but there may be some additional costs to cover transportation.

What if you go out of business?

We hold all prepaid funds in a Trust with the Lifeplan Australia Friendly Society (a part of Australian Unity). It is held on your behalf and we do not have access to these funds. They are invested to cover the cost of the service you purchased. In the very unlikely event that we are not in business when you pass away, your money is protected by the Trust and can be transferred to another funeral director at no additional cost.

What happens when I pass?

When the time comes and you have a Bare Prepaid Cremation plan in place, our team is available 24/7 to assist. Upon your passing, your Next of Kin or designated contact can simply reach out to us at 1800 071 176 to inform Bare of the situation. From there, we'll promptly take action, providing urgent care for you and your loved ones.

While we already have a record of your prepaid plan, there are some additional forms that your Next of Kin will need to complete to formalise the process. These forms are essential for ensuring a safe, legal, and smooth cremation process. We'll guide your Next of Kin through any questions they may have and assist them in completing the forms. Once completed, these forms will authorise Bare to coordinate with any necessary healthcare facilities, if required, to transfer the deceased into our care. These forms will also grant permission for the cremation to proceed and allow us to gather the necessary details to register the passing with the Registry of Births, Deaths, and Marriages. We'll handle all the paperwork on behalf of your Next of Kin, ensuring that all information is accurate and up-to-date at the time of death. We’ll also ensure that the ashes are returned according to the family's wishes.

Final thoughts on preplanning a funeral.

While prepaying a funeral can offer peace of mind and help protect against rising costs, it’s still important to understand how your chosen plan works. Some plans may include certain management or administrative fees, and the growth of funds held in trust can vary over time. Taking a moment to review the fine print and fee structure ensures you know exactly what’s covered and helps you make an informed choice.

We hope this complete guide to preplanning your cremation has provided you a better understanding of the process.

Want to see what our Bare Prepaid Cremation service will cost in your area? Click on the button below to obtain a quote and cost breakdown for your location. If you have any further questions, visit the Bare website or call 1800 202 901.

Disclaimer: This article and all information and pricing within it was accurate at the time of writing. Please see bare.com.au or linked sources for current pricing. This article provides general information only and does not constitute professional advice. Please consult a qualified expert for guidance specific to your situation.