Is a funeral loan the option for you?
Losing a loved one is an emotionally and financially challenging experience, and funeral expenses can add up quickly, leaving families with unexpected financial burdens during an already difficult time. Fortunately, there are several financing solutions available to Australians looking for a funeral loan to help cover the costs.
How much does it cost for a funeral in Australia?
The average cost of a funeral in Australia ranges from $4,000 to $15,000, depending on the type of service and additional services selected.
Often funeral homes will offer packages that include everything from the funeral director’s professional services to the coffin or urn, the venue, and even flowers. These packages can save you money compared to buying each item or service separately. However, it’s essential to read the fine print and ask questions about what is and is not included in the package, and if there is room to negotiate if there are inclusions that are not applicable for the service you’re arranging.
One of the factors that can significantly impact funeral costs is the type of funeral service you choose. A traditional funeral service, including a wake or viewing, burial or cremation, and a service or ceremony, is typically the most expensive option. On the other hand, a direct cremation or burial, where there is no viewing or ceremony, is generally the most affordable option.
Can you get a funeral loan in Australia?
Yes. You can apply for a funeral loan in Australia to cover some or all of the costs associated with the death of a loved one. Fundo approves loans up to $2,000 for funeral expenses, all online with no paperwork.
Funeral homes may offer additional services alongside the basics such as embalming, a funeral celebrant or clergy member, catering, and transportation. These services can add significant costs to the funeral, so it’s important to carefully consider which services are essential for your needs and budget, and to ask questions to ensure you fully understand the inclusions and total costs.
If your loved one has a pre-paid funeral plan or life insurance policy, this can help cover some or all of the funeral expenses. It’s important to check the policy details to understand what is covered and what is not. Some policies may only cover specific funeral expenses, while others may have restrictions or exclusions.
If you’re just a little bit short to cover a certain expense, a teeny tiny loan from Fundo might help you bridge the gap.
If you need to cover funeral costs out of pocket, you may be eligible for a bereavement payment through Centrelink. The payment amount will depend on your circumstances, such as whether you are the partner of the deceased and whether you receive other income or support payments. However, bereavement payments are not intended to cover the full cost of the funeral, and you may still need to contribute additional funds.
What should I consider before applying for a funeral loan?
If you need to borrow money to cover funeral expenses, it’s important to explore your options carefully. A personal loan from a bank or credit union may be an option if you have good credit and are in good standing. However, it’s essential to carefully consider the interest rate and repayment terms, as these can impact the total cost of the loan, and how long you are repaying it for.
If you have a bad credit score, obtaining traditional finance may be challenging or very expensive. In this case, Fundo offers loans for funeral expenses regardless of your credit score or rating. They do not require any security or personal guarantors to approve a loan, and they are generally able to offer same-day approval. The cash will be available in your bank within minutes of acceptance, providing you with the financial assistance you need during this difficult time.
In conclusion, funeral costs in Australia can vary significantly depending on the type of service you choose, with associated costs ranging from $2,000 to $15,000, It’s important to carefully consider your budget and explore your options for covering funeral expenses, such as pre-paid plans, insurance policies, bereavement payments, and financing options. A small loan from Fundo may be a helpful solution for those who need financial assistance during this difficult time.
FAQs
Do I qualify for a funeral loan?
Qualifying for a loan can depend on several factors such as your annual income, residency type, city of residence, working organization, debt-to-income ratio, and other such factors. To get approved for a Fundo loan you will need to meet our minimum requirements for lending. You must be at least 18 years old with an income of at least $500 a week from a part-time or full-time job. You can also have a pension or Centrelink payments on top of your other income.
How can I get approved for a funeral loan quickly?
If you maintain a good credit score, keep a good bank balance, have a good salary, and have all of the necessary documents ready before you apply, then you will generally be able to get the loan approved quickly. At Fundo, we understand that a difficult time does not need to be made more difficult, and can often approve and deposit the funds into your account within the hour.
What if I don’t have a good credit score?
That’s okay! We understand that everyone makes mistakes and that the mistakes we made in the past don’t always reflect how we are managing our finances now. Fundo customers are able to track their Fundo Credit Score in their self-service dashboard, and be rewarded for being a great customer!
How do I get help with my Fundo loan application?
Give us a call on 02 9066 9660 or send us an email to hello@fundo.com.au and our friendly customer service team will be more than happy to help answer any questions you may have and talk you through the process.
Disclaimer: The opinions expressed in the Blog are for general informational and entertainment purposes only and are not intended to provide specific advice or recommendations for any individual or on any specific investment product. It is only intended to provide education about the financial industry. The views reflected in the commentary are subject to change at any time without notice