Pre-paid funeral vs. funeral insurance
A pre-paid funeral (sometimes called a funeral plan) allows you to plan and pay for your funeral ahead of time at today's prices, either through a lump-sum payment or instalments.
Funeral insurance pays a lump sum benefit to your family when you pass away regardless of how much you’ve paid or how long you’ve held the policy for. Other covers may also apply that would pay the benefit to you, such as the diagnosis of a terminal illness.
While both options can be a handy way to help take care of funeral costs, they can work out rather differently depending on your plans and financial position. It’s a good idea to speak with your family or a financial adviser to understand how each option could help.