Funeral Company in Queensland Refuses to Honor Payment in Full For Prepaid Funeral
Vic41 said
06:45 PM Nov 5, 2014
This seems pretty disgusting, you think you are covered and have a signed agreement saying your funeral is paid in full the company renege's on it....something wrong here, see;
Exactly why we don't do the "pre" thing... Just don't trust them.
We have cash in the bank just in case... Unless we spend it one day then kaput... who knows....
Big Gorilla said
05:15 PM Nov 6, 2014
Very interesting. I recall when I was knee high to a Grasshopper, my dear old Mum took out a Funeral Plan for all members of the family separately. Mine was with Metropolitan Funerals in Brisbane. An amount of 25 Pounds rings a bell and I think Mum paid 6d a week... I still have the book of payment receipts, but I doubt if I'd bother with it for $50.00... Anyway, I'll be dead !!!
Might be worth checking with them BG, you never know they might honour it at full price today (or when the grim reaper comes for you).
Wombat 280 said
08:21 PM Nov 6, 2014
It's also worth noting that if the body snatchers company isn't part of a group who honor the contracts of others you may be faced with transportation costs back to a group members home base. As many people move and change locations as they age for various reasons you may not be covered for those hidden transport costs and there are always hidden costs . Pleased to see the judge found for the family but at what cost to them ,I didn't see if costs were awarded or if they need to go the company again to recover their legals
dorian said
09:11 PM Nov 6, 2014
The question in my mind is, what did the funeral company do with the client's payments? Did they just add them to general revenue, or did they invest them?
For example, an interest rate of 17% after tax would have grown the $50 contributions to $7602 after 32 years. I think the share market has performed better than that. And that's not including the period between 1948 and 1980.
By way of comparison, the local cemetery offers prepaid burial plots which are free of maintenance costs. "Perpetual Care" is made possible because the cost of maintenance is paid for out of investment income.
rockylizard said
09:22 PM Nov 6, 2014
dorian wrote:
The question in my mind is, what did the funeral company do with the client's payments? Did they just add them to general revenue, or did they invest them?
This is snipped from the news article in the original link provided by Vic41
For example, an interest rate of 17% after tax would have grown the $50 contributions to $7602 after 32 years. I think the share market has performed better than that. And that's not including the period between 1948 and 1980.
By way of comparison, the local cemetery offers prepaid burial plots which are free of maintenance costs. "Perpetual Care" is made possible because the cost of maintenance is paid for out of investment income.
Cheers - John
dorian said
09:33 PM Nov 6, 2014
Bugger! I did read that article, but obviously not closely enough. Sorry.
Dunmowin said
10:26 PM Nov 6, 2014
News tonight is that the funeral company have been ordered to pay for the funeral. The little guy has won!
That's great news Dunmowins, as well as having to carry the full funeral cost, I would say that Gow funerals will lose a lot of business over this outrageous matter, and so they should. I hope other companies with similar schemes get the message...
rockylizard said
07:47 AM Nov 7, 2014
Vic41 wrote:
That's great news Dunmowins, as well as having to carry the full funeral cost, I would say that Gow funerals will lose a lot of business over this outrageous matter, and so they should. I hope other companies with similar schemes get the message...
Gday...
It would appear, from the original news article link posted in your original post, that there are only two companies involved with this scheme -
I would therefore assume (should never assume though ) the "funeral insurance plans" of both these companies will now have to be honoured.
If so, then it would seem that both companies will ultimately fold.
Cheers - John
Vic41 said
09:35 AM Nov 7, 2014
There are many other companies that run pre-paid funeral schemes Rocky, I have one fully paid for at todays rates, and although they claim similar to this one that no more will have to be paid, after reading about this incident it makes one wonder if they are worth the paper they are written on. I hope they have more integrity than that, but then the people who took out theirs with Gow probably thought the same thing.
Monies paid by me are also held in a "Funeral Trust" or a certain percentage is.
Big Gorilla said
10:09 AM Nov 7, 2014
Just looked up Metropolitan Funerals and they still exist. I'm currently at my home in Philippines, when I return to Tassie next month, I'll find the Receipt Book and follow it up. One thing I did notice, Metropolitan Funerals are in Qld., my old home State. Now I am in Tassie.... Do I have to go to Qld. to die to get a free funeral !!!
rockylizard said
10:25 AM Nov 7, 2014
Gday...
I understand your concern Vic, and I do understand that many years ago people, not well acquainted with how insurance policies worked have been misled. Additionally, the companies that offered the type of insurance this thread highlights, were either naive or also not well acquainted with what may have been their obligations many decades later. To have provided a document that did not state an end value was bad, and thoughtless, management.
Perhaps in the defence of those companies, it would have been quite beyond expectation at that time that inflation/cost of living and the economy would have multiplied to such an extent since 1948 some 66 years.
One would hope that modern funeral plans are a much more robust document with premiums clearly stated, the period for the payment of premiums clearly stated, and a sum assured clearly stated. These documents will stand the test of time. However, that of course does not necessarily mean the sum assured of the policy will meet the cost of a funeral some decades into the future. Unfortunately, none of us can accurately predict that.
Here are some examples of the policies on the market at the moment -
As the majority of us know these days, always read the fine print, make sure the policy is fully understood and do some research/comparison.
Thankfully, given the legal outcome of Beryl Turners family, and hopefully the other holders of those policies, the risk has been lessened for them.
Cheers - John
Big Gorilla said
10:38 AM Nov 7, 2014
These Policies available today have been the subject of rigorous investigation by Current Affair type programs. Basically if you take out a Policy for $10,000.00, and you live 30 or 40 years after taking out the Policy, the premiums jump into telephone numbers and at death, you would have paid tens of thousands of Dollars in premiums, but still only receive the original amount of $10,000.00. My wife wanted one of these Policies and was paying $25.00 a month. I convinced her to can it and put $25.00 a week into a special savings account, and she will be much better off. Fortunately she has done this...
rockylizard said
10:46 AM Nov 7, 2014
Gday...
Very pertinent BG. This is the table from the Choice site I quoted in my post above -
I find it unsettling, and frustrating I guess, that companies market policies the way they do; but more unsettling and frustrating is that people continue to sign up to these, having made the "emotional decision" rather than actually reading what actual benefits/costs are involved.
It is not just 'funeral plans' that fall into this category - there are many things that people sign up to "because it seemed like a good idea at the time" or "they said it was just what I should have"
Cheers - John
Vic41 said
05:17 PM Nov 7, 2014
Here is an outline of my prepaid funeral with Simplicity Funerals, read right down to the bottom on the link;
I was assured that unless the family ordered over and above what I have prepaid for there would be no additional cost at the time of my funeral. I am not paying for a service, but if family wants one then they will have to pay the additional amount, that is, I have only paid for the type of funeral I want......
This seems pretty disgusting, you think you are covered and have a signed agreement saying your funeral is paid in full the company renege's on it....something wrong here, see;
http://www.abc.net.au/news/2014-11-05/company-sues-couple-for-refusing-to-pay-bill-for-prepaid-funeral/5869254
We have cash in the bank just in case... Unless we spend it one day then kaput... who knows....
Very interesting. I recall when I was knee high to a Grasshopper, my dear old Mum took out a Funeral Plan for all members of the family separately. Mine was with Metropolitan Funerals in Brisbane. An amount of 25 Pounds rings a bell and I think Mum paid 6d a week... I still have the book of payment receipts, but I doubt if I'd bother with it for $50.00... Anyway, I'll be dead !!!



The funeral company have to pay after going to court, so BG gets a fully paid for funeral.
http://www.abc.net.au/news/2014-11-06/judge-rules-alex-gow-funerals-must-cover-cost/5870860
Might be worth checking with them BG, you never know they might honour it at full price today (or when the grim reaper comes for you).
For example, an interest rate of 17% after tax would have grown the $50 contributions to $7602 after 32 years. I think the share market has performed better than that. And that's not including the period between 1948 and 1980.
By way of comparison, the local cemetery offers prepaid burial plots which are free of maintenance costs. "Perpetual Care" is made possible because the cost of maintenance is paid for out of investment income.
Cheers - John
News tonight is that the funeral company have been ordered to pay for the funeral. The little guy has won!
http://www.abc.net.au/news/2014-11-06/judge-rules-alex-gow-funerals-must-cover-cost/5870860?§ion=news
That's great news Dunmowins, as well as having to carry the full funeral cost, I would say that Gow funerals will lose a lot of business over this outrageous matter, and so they should. I hope other companies with similar schemes get the message...
Gday...
It would appear, from the original news article link posted in your original post, that there are only two companies involved with this scheme -
I would therefore assume (should never assume though
) the "funeral insurance plans" of both these companies will now have to be honoured.
If so, then it would seem that both companies will ultimately fold.
Cheers - John
There are many other companies that run pre-paid funeral schemes Rocky, I have one fully paid for at todays rates, and although they claim similar to this one that no more will have to be paid, after reading about this incident it makes one wonder if they are worth the paper they are written on. I hope they have more integrity than that, but then the people who took out theirs with Gow probably thought the same thing.
Monies paid by me are also held in a "Funeral Trust" or a certain percentage is.
Just looked up Metropolitan Funerals and they still exist. I'm currently at my home in Philippines, when I return to Tassie next month, I'll find the Receipt Book and follow it up. One thing I did notice, Metropolitan Funerals are in Qld., my old home State. Now I am in Tassie.... Do I have to go to Qld. to die to get a free funeral !!!

Gday...
I understand your concern Vic, and I do understand that many years ago people, not well acquainted with how insurance policies worked have been misled. Additionally, the companies that offered the type of insurance this thread highlights, were either naive or also not well acquainted with what may have been their obligations many decades later. To have provided a document that did not state an end value was bad, and thoughtless, management.
Perhaps in the defence of those companies, it would have been quite beyond expectation at that time that inflation/cost of living and the economy would have multiplied to such an extent since 1948 some 66 years.
One would hope that modern funeral plans are a much more robust document with premiums clearly stated, the period for the payment of premiums clearly stated, and a sum assured clearly stated. These documents will stand the test of time. However, that of course does not necessarily mean the sum assured of the policy will meet the cost of a funeral some decades into the future. Unfortunately, none of us can accurately predict that.
Here are some examples of the policies on the market at the moment -
http://www.apia.com.au/funeral-insurance
http://www.suncorp.com.au/insurance/life-insurance/funeral-insurance
http://www.gio.com.au/personal-life-insurance/funeral-insurance
http://www.iselect.com.au/life/funeral-cover/
http://www.insuranceline.com.au/funeral-insurance/
http://www.nationalseniorsinsurance.com.au/funeral-insurance
http://www.australianfuneralplan.com.au/
http://www.allianz.com.au/life-insurance/funeral-insurance
Some further advice -
https://www.moneysmart.gov.au/life-events-and-you/over-55s/paying-for-your-funeral
A review by Choice
http://www.choice.com.au/reviews-and-tests/money/insurance/personal/funeral-insurance.aspx
As the majority of us know these days, always read the fine print, make sure the policy is fully understood and do some research/comparison.
Thankfully, given the legal outcome of Beryl Turners family, and hopefully the other holders of those policies, the risk has been lessened for them.
Cheers - John
These Policies available today have been the subject of rigorous investigation by Current Affair type programs. Basically if you take out a Policy for $10,000.00, and you live 30 or 40 years after taking out the Policy, the premiums jump into telephone numbers and at death, you would have paid tens of thousands of Dollars in premiums, but still only receive the original amount of $10,000.00. My wife wanted one of these Policies and was paying $25.00 a month. I convinced her to can it and put $25.00 a week into a special savings account, and she will be much better off. Fortunately she has done this...
Gday...
Very pertinent BG. This is the table from the Choice site I quoted in my post above -
I find it unsettling, and frustrating I guess, that companies market policies the way they do; but more unsettling and frustrating is that people continue to sign up to these, having made the "emotional decision" rather than actually reading what actual benefits/costs are involved.
It is not just 'funeral plans' that fall into this category - there are many things that people sign up to "because it seemed like a good idea at the time" or "they said it was just what I should have"

Cheers - John
Here is an outline of my prepaid funeral with Simplicity Funerals, read right down to the bottom on the link;
http://www.simplicityfunerals.com.au/en/Prepaying%20a%20Funeral/Prepaying%20a%20funeral/Prepaying%20a%20funeral.aspx
I was assured that unless the family ordered over and above what I have prepaid for there would be no additional cost at the time of my funeral. I am not paying for a service, but if family wants one then they will have to pay the additional amount, that is, I have only paid for the type of funeral I want......