Looking for simple, affordable cover for your final expenses? Find cover and apply over the phone.
Final Expenses Insurance is a type of life insurance designed specifically for seniors that provides a payment (usually to a maximum amount of around $60,000) to help cover the immediate expenses that arise following death.
What can it cover?
Such expenses might include funeral costs, financial planning, medical bills, utility bills, phone bills,legal fees, estate settlement fees rent and outstanding mortgage debt. The provision of this benefit ensures your family is not put under any financial strain following your death and is able take the time to grieve for you and put the right planning in place for your funeral.
- No medical or blood tests required
- Cover generally up to $60,000
- Get cover over the phone in a matter of minutes
What are some key benefits to look out for on a final expenses life insurance policy?
- Sum insured: Most policies will only allow applicants to take out roughly $60,000 in cover.
- Increased benefit for accidental death: Some policies will double the benefit if death was caused by an accident.
- Reduced medical underwriting: Most policies will not require the applicant to undertake any medical underwriting at the time of application.
- Guaranteed cover: Some policies will guarantee cover for applicants.
- Refund of premiums in Accidental Death period: Some policies may only cover accidental death in the first 12 or 24 months of the policy. If the applicant is to die of any other cause they will be entitled to a full refund of their premiums.
- Joint Cover Discounts: Some policies will offer premium discounts as much as 10% on joint policies.
- Worldwide Coverage: Most policies will provide cover 24 hours a day 7 days a week anywhere in the world.
- Terminal Illness Benefit: Applicants may be able to claim their benefit if they have been diagnosed with a terminal illness and are not expected to live longer than 12 months.
- Indexation: Benefit will increase each year in line with inflation rate.
- Cooling off period: Most policies will provide a cooling off period of 30 days refunding all premium payments if the applicant decides that the policy is not for them.
How is Final Expenses Insurance taxed?
Premiums for final expenses life insurance are generally not tax deductible and benefit payments are not assessable for tax purposes.
What won't generally be covered?
- Death from causes other than accident within the first 24 months of the policy.
- Insurers will generally not provide the final expenses insurance benefit if the policy owner passes away directly or indirectly as a result of self-inflicted injury within 13 months of the policy commencement date or reinstatement date.
- Some policies may place special exclusions on policy conditions for claim. The insurer will make any of these clear to the insured prior to policy commencement.
How much will it cost?
There are a number of factors that will be taken into account by insurers when determining final expenses insurance premiums. These will include.
- Age at time of application: Older applicants will generally pay higher premiums.
- Sum-insured: A greater sum-insured would attract a higher premium.
- Gender: Gender can play a role in the premium that is payable at different stages of life.
- Smoking status: Smokers are considered a greater risk to insurers and will pay higher premiums. Smokers generally pay as much as double in life insurance premiums.
- Family medical history: Some health conditions can be hereditary and result in a premium loading for the insured.
- Occupation: Applicants in high-risk occupations may be required to pay more for cover than those in low-risk environments.
- Hobbies: High-risk pastimes such as a motor racing or hang gliding will either result in a premium loading or be excluded from the policy altogether.
Who can apply?
While Final Expenses cover is generally designed for senior buyers, it can also be a suitable option for other people who have struggled to take out life insurance in the past. Final Expenses can be a great option for those that have presented too great a risk to insurers due to their medical condition or occupation. General eligibility requirements are;
- Australian residents
- Aged between 18 and 59
How is final expenses cover different to funeral insurance?
Both Funeral Insurance and Final Expenses Insurance are quite similar in nature, each provide support to the policy owners loved ones to cover immediate expenses following death. The only real difference between the two types of cover is that Final Expenses policies will generally provide a greater lump sum benefit upon the policy owner's death. Most funeral insurance plans will provide cover to a maximum of around $30,000 while final expenses will generally offer cover up to around $60,000. This can make final expenses more appropriate for people are that are keen to cover a range of different expenses such as medical, mortgage debt, credit card debt and taxes.
Another key difference between funeral insurance and final expenses is that most funeral insurance policies will not actually offer an advancement of a portion of the lump sum benefit if the person is diagnosed with a terminal illness with twelve months to live.