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Family funeral insurance can ensure your loved-ones have one less thing to worry about when you and other immediate family members pass away. Going a step further than a single policy, family cover can provide your children or siblings with a lump sum payment to cover your funeral, your spouse's funeral and an elderly parent's funeral.
If you purchase a family policy, you can also get as much as 20% off your premiums when other family members purchase additional policies. Children under 21 can sometimes be bundled onto a policy as well.
The key features of funeral insurance include:
If a family member such as an elderly parent is unable to apply for funeral insurance themselves, it is possible to take out a policy on their behalf. You can even pay their premiums for them if they do not have the means to do so. As long as their name is on the policy as the insured person, they will be the policy owner and the cover will apply to their funeral expenses, regardless of who pays the premiums.
Discussing funeral insurance with a sick or elderly family member can be awkward and how you go about it will depend on your individual situation and how your family normally deals with sensitive issues.
The costs of a funeral can be substantial. The price of a basic cremation is around $4,000 and if you choose to be buried, costs escalate from there including the cost of a funeral director, funeral service, casket, burial plot, grave stone, flowers, transportation, after-service catering, newspaper notices and death certificate.
Yes, you can get funeral insurance for this reason. One of the advantages of funeral insurance is that no medical checks are usually required in order to obtain cover. Once you reach a certain age however, this may not be the case and obtaining cover can become more difficult. The typical eligible age range is 45 to 70 years old, although this varies with insurers and someone up to the age of 80 may still be able to get cover, subject to medical assessment.
If someone has a pre-existing medical condition (one that developed before taking out the policy), most insurers will not pay the benefit if they die from that condition, unless it was disclosed at the time of taking out the policy and the insurer had agreed to cover it.
Most insurers will also not pay a benefit if the insured passes away due to illness or develops a terminal illness from before or within the first 12 months of the policy’s life. A terminal illness is a diagnosed illness where life expectancy is not greater than 12 months, regardless of available treatments.
Nevertheless, many insurers will refund the premiums paid in such circumstances and there are now those who offer an early payment option for terminal illnesses (providing they aren’t pre-existing), so it pays to shop around for the policy that best suits your family member’s circumstances.
The best way to compare funeral insurance policies is to use an online comparison site such as finder.com.au. This will allow you to compare quotes from various insurers, read product reviews, learn the traps to avoid. Some things you should look out for include:
Compare funeral insurance quotes
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I would like to take out a policy but not for myself for my mother am I able to do so ?
Hi Chaney,
Thank you for reaching out to finder.
Yes, it is possible for you to buy a funeral policy for your Mother and you can even pay for the premium of the policy. As long as her name is listed as the insured person, she will be the policy owner and will receive all the benefits covered by the policy.
Before taking any insurance policy, please carefully read through relevant documents like the policy terms and conditions to see if the product best suits your needs.
Hope this helps.
Cheers,
Charisse