Planning Ahead

Many families choose to benefit by planning ahead and securing positions at today’s prices in a public, community cemetery. This gives them peace of mind knowing that requests will be honoured and family members will be saved from making difficult decisions at an emotional time.

Advantages of planning ahead with the Southern Metropolitan Cemeteries Trust

• You will be protected against future price increases. Fees are locked in upon the deposit being paid and, therefore, you are able to purchase for a future need at today’s prices.
• Within the nine cemetery locations administered by the Southern Metropolitan Cemeteries Trust, your funds are securely invested in an organisation that has been serving the community since 1852.
• Family members are not burdened financially. When decisions are made and paid for in advance, there is nothing more to pay and no ongoing fees.
• Purchasing ahead of time provides an opportunity to secure specific locations so that memorials of family members will be positioned together.
• Key decisions are made and accurately recorded to ensure that wishes are carried out and family members are reassured that they are doing what was wanted.
• You also have the option of purchasing now with interest-free, extended payment terms available.
• Cemetery plots are not counted as assets and therefore do not impact pension payments.
• You have the ability to cancel in the future, if required, and receive a refund. Refunds for cemetery plots are based on the current day value e.g. if you purchase today and cancel in 10 years time, the refund is based on the price in 10 years time, not the price originally paid.

Beware of alternative pre-planning options

If you have considered alternative ways of pre-paying funeral expenses, please ensure that you understand what you are receiving.

It is important to understand that:

1. some providers allow you to make small regular payments over a period of time, however often the price is not fixed until the last payment is made
2. only some pre-paid funeral plans offered by funeral directors offer a refund if you wish to cancel
3. funeral Bonds offered by Friendly Societies and Life Insurance Companies may attract annual fees, which can vary. Also, the money invested can only be used to cover your funeral and cannot be accessed earlier or for any other reason.

Beware of the fine print with funeral insurance given:

1. during the first 12 or 24 months, you are usually only covered for accidental death
2. the older you are, the higher the premium
3. missing the payment of a premium will mean that you are no longer covered. The entire benefit is lost and all past premiums paid are forfeited
4. with a typical contract, from age 60 to age 85, for a $15,000 payout, premiums amount to approximately $54,593*. This is likely to be many times the cost of one funeral!

* Rice Warner Actuaries Report, September 2010.

Please note. If you have already committed to Funeral Insurance, please talk to one of our Client Services Consultants who will guide you in relation to your options.