Definition: Pre-paid Funerals
A pre-paid funeral is one where the family and funeral director establish the funeral requisites and services that they wish to contract and pay for now, for provision at a future date.
Definition: Pre-arranged Funeral
A pre-arranged funeral is one where the family and funeral director establish the funeral requisites and services which they may utilise in the future
The Australian Funeral Directors (AFDA) Policy is that
Pre-paid Funerals should comply with the following:
1. A written contract must be provided by the funeral director to the client clearly detailing the funeral requisites and services contracted and paid for.
2. The price of each pre-paid funeral should be fixed.
3. The financial institution holding the funds should be at "arms length" from the funeral director.
4. A numbered certificate in the name of the client should be provided by the financial institution.
5. The financial institution should guarantee that no funds can be withdrawn by the funeral director until the death and the funeral take place.
6. The financial institution must safeguard the funds of the client even if the funeral firm has gone out of business.
7. The pre-paid funeral plans and associated procedures must comply with the relevant Commonwealth and State Legislation in each State in which it operates.
8. In the event that a member is convicted in a court of law
in relation to a charge of improper practice involving a pre-paid
funeral contract, National Council shall take action to revoke
the membership of the particular member in accordance with the
Association’s constitution.
