How much does funeral insurance cost?

How much does funeral insurance cost?

We sourced online quotes from 3 of Australia's most well-known insurance brands. We found that for a 50-year-old looking to get $8,000 worth of cover, funeral insurance costs are on average under $11 a week.

_{Prices shown are the initial premium in the first year, based on a sum insured of $8,000. Premiums may increase as you get older and be impacted by personal circumstances. Quotes were accurate as of July 2023.}

Get a funeral insurance quote to see how much you could pay

Name	Product	Maximum cover	Maximum entry age	Average claims acceptance rate	Average claim time	Sum Insured	Expiry age
Apia Funeral Insurance		$15,000	80	99.70%	0.6 months	$3,366 million	No expiry age as long as premiums are paid	Get 12 months cover for the price of 11 months if you pay annually, including fast payout within 24 hours.	Get quote View details	Compare	loading Fetching your data...
Suncorp Funeral Insurance		$15,000	80	99.70%	0.6 months	$3,366 million	No expiry age as long as premiums are paid	Get quote View details	Compare	loading Fetching your data...
Real Funeral Cover		$15,000	79	99.20%	0.8 months	$1,923 million	100th birthday	Get back 10% of premiums you've paid after your 12-month policy anniversary – as part of The Real Reward programme.	Get quote View details	Compare	loading Fetching your data...
Seniors Funeral Insurance		$15,000	79	99.20%	0.8 months	$1,923 million	100th birthday	Get up to $15,000 in funeral cover, including an extra 25% bonus cover when you turn 85.	Get quote View details	Compare	loading Fetching your data...
Insuranceline Funeral Insurance		$15,000	80	99.70%	0.6 months	$3,366 million	No expiry age as long as premiums are paid	Take out a new Insuranceline Funeral Insurance policy and get a $100 eGift card after your first 4 months of cover. T&Cs apply. Ends 31 March 2024.	Get quote View details	Compare	loading Fetching your data...

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What influences the cost of funeral insurance?

The main factors that will determine the cost of your funeral insurance are:

• Where you live. It’s more expensive to be buried in somewhere like Sydney than in Hobart or Brisbane, for instance.
• How old you are. The cost of premiums go up the older you are when you apply for funeral insurance.
• Whether you choose level or stepped premiums. Level premiums remain the same, while stepped premiums go up over time.
• Whether you smoke. Smokers can pay up to twice as much for funeral insurance as non-smokers
• Whether you are male or female. Men statistically die younger than women so pay slightly more for funeral insurance.

Watch out for stepped premiums

These increase as you age e.g. every year at the "policy anniversary" your premium is re-calculated. This could mean you end up paying more in premiums than the funeral itself. To avoid this, opt for level premiums.

Is funeral insurance worth it?

Whether funeral insurance is worth having depends on the cost of your premiums vs the expected cost of your funeral. While premium costs vary according to factors such as entry age, gender and smoking status, the average cost of funeral insurance to age 80 for a 52-year-old is around $15,000, while the average cost of a funeral is around $7,000. If you can afford it, life insurance may be a better value alternative.

How to ensure your insurance is less than the funeral

• • Capped premiums. The insured amount is set at a particular limit (eg, $10,000) or age (eg, 90) and you continue paying for your policy until you reach that limit. After that, your cover will continue for the rest of your life but you won’t have to pay any more premiums.
  • Payout guarantee. Your dependants are guaranteed to receive either the total premiums paid or the original sum insured, whichever is the higher amount.
  • Level premiums. Level premiums stay the same over time – stepped premiums go up ever year which can end up making the insurance cost more than the funeral itself.

Can you afford to pay for your funeral?

A 2022 Finder survey revealed that 53% of Australians – equivalent to over 10 million people – intend to pay for their funeral while they're still alive.

Funeral insurance costs: smoker vs non-smoker?

We compared two quotes using the same details and changing the smoker status. These were the results.

Although you won't be excluded from cover in most cases, you will face a significantly higher premium. Note: The figures above are an estimate based on one brand and are not indicative of the entire market.

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Frequently asked questions

• Is it worth it to get funeral insurance?

  This is a decision for you to make. Some may find life insurance is a better-value option, in part because not all funeral insurance providers offer a payout guarantee (essentially, you could pay more in premiums than you get paid out). One of the pluses of standalone life cover is it does include a final expenses payout. This can help your family with immediate financial needs, such as paying for your funeral.

• Is funeral insurance getting more expensive?

  Not necessarily. We ran quotes for 3 Australian providers in July 2023 and found weekly cover for a 50-year-old may cost $10.80 per week on average. In September 2022, Finder research found policies cost $10.96 per week. Our research also found prices – on average – were a bit lower for 60 year-olds and 70 year-olds.

• What age should I consider funeral insurance?

  Ultimately, it's your call. In Australia, the entry age limits tend to range between 18 and 80.

• Will Centrelink pay for a funeral?

  In some circumstances, the government may provide financial assistance to help cover the cost of a funeral through the Pension Bonus Scheme. You can see if you're eligible for the Pension Bonus Scheme on Centrelink's website. You'll have had to have registered for this scheme before 1 July 2014, and meet other eligibility criteria.