Ways to make ends meet at end of life

These days the cost of living is bad enough for most people, but what about the cost of dying when money is tight?

The average bill for a funeral in NZ is $10,000, a sum that many people won’t have lying around should a loved one either die unexpectedly or without having made provision in advance for funeral expenses.

There are ways to keep costs to a minimum, however, and the scope of options available is widening every year.

For those who want the ease and reliability of a traditional farewell, the two funeral directors based locally both work closely with families to help them however they can.

They say that while council burial and cremation fees continue to increase every year, there are many ways funeral bills can be minimised by opting for a more DIY approach.

Jason Morrison Funerals manager Debbie Clarke says the more families do themselves, the more they can save.

“These days, more and more families are opting to do as much as they can themselves and we encourage that and let them know what they can do,” she says.

“So if they have someone who’s good with IT, they could do the slideshow, or do their own service sheets or music.”

Besoul funeral director and manager Lily Watson agrees.

“We encourage families to ask around and have family members or friends perhaps provide flowers themselves, or create a service sheet or a photo tribute,” she says.

“Often families may have built their own coffin or have access to another group, such as the Kiwi Coffin Club, The Coffin Shop or Menz Shed.”

Clarke says the important thing in every case is to talk with families and give them all possible options.

“The last thing we’d do when families walk in is to say ‘this is the funeral model, you have to have this, this and this …’. We sit down, have a conversation, work out where they’re heading, estimate costs, keep it as streamlined as possible and look at things they can do,” she says.

“We’re not selling or providing ‘bulldozer’ services – it’s all collaborative.”

There are two government payments available when someone dies – a WINZ grant can pay up to $2616.12 towards essential funeral expenses, but is dependent on income and other criteria – something the Funeral Directors Association of NZ (FDANZ) has been lobbying government to get increased for many years. There is also an ACC funeral grant if someone dies as a result of an accident – the maximum amount is currently $7,793.13.

People can also prepay money into The Funeral Trust, an independent fund held by FDANZ, which is exempt from asset testing.

Another option is funeral insurance, either as a standalone policy or as part of medical or life cover.

Tamati Kemp, director and financial advisor of Warkworth insurance broker Dashper & Kemp, says any such policies need careful checking to ensure people are getting the cover that they need at the right time and price.

“It’s quite subjective, and can be confusing, so if you’re investing in a potential future claim, it makes sense to talk to someone who knows all the products and providers,” he says.

“You want to know exactly what you can claim and when, so it’s good to have someone in your corner to take you through these steps and give you advice.

“And while ticking boxes online might seem simple and less stressful, come the time to claim, you’ve got to have all your ducks in a row so you don’t leave your family with debt.”

There is also a national lobby group, Death Without Debt, that is advocating for simpler, cheaper funerals for all. The group is holding a workshop on all aspects of funeral planning with minimal expense at Whangaparaoa Library on Sunday, July 6 from 10.30am to 2.30pm.

Info and registration: https://www.deathwithoutdebt.org.nz/