Funeral Insurance Finder™

Funeral insurance can help your family out immediately when you pass away.

Funeral insurance provides a nominated person (e.g. your spouse) with the financial ability to cover your funeral expenses when you are no longer around.

3 reasons to consider funeral insurance

• A flexible benefit payment up to $15,000. This can be used by your family to pay for your funeral costs, other expenses e.g. legal fees, travel expenses and financial advisers.
• Fast and straightforward application. No medical or blood tests are required.
• Avoid paying more than what you're insured for. Some policies will cease premium payments once they have reached the amount insured. This guarantees value in your policy.

Get quotes with a direct brand

	Product details	Maximum cover	Maximum Entry Age	Cooling-off (days)
Real Guaranteed Funeral Insurance Flexi Plus	Receive up to $15,000 in funeral cover. Premiums reduce by 5% every 5 years you hold your Policy.	$15,000	79	30	Get quoteMore info
Funeral Insurance	Receive up to $15,000 in funeral cover to assist with your funeral bill and other unexpected expenses.	$15,000	70	30	Get quoteMore info

_{Funeral insurance is not the right choice for everyone. Always consider your own financial and personal situation when selecting products to fund your funeral. Funeral insurance does not provide funeral, burial or cremation services. Instead, it provides a sum of money to cover these expenses.}

The finder.com.au funeral insurance comparison

The table below provides details of the funeral insurance policies compared on finder.com.au.

When will (and when won’t) my family receive a payout?

Funeral insurance policies will pay out benefits depending on:

• If you pass away or if you develop a terminal illness
• The timing of your death or illness
• The cause of your death or illness

In the first 12 months of holding your policy*

After 12 months of holding your policy*

*A 12 month waiting period is the standard waiting period in most policies however this can vary depending on the policy. Always check with your insurer.

What are the benefits of taking out a funeral insurance?

Funeral insurance is important to ensure your loved ones are not left with a financial burden when you pass away. Most funeral insurance plans in Australia offer a range of benefits as standard, including:

Bonus options worth considering

Depending on the insurer, additional benefits are also offered with funeral insurance such as:

What expenses can funeral insurance cover?

Funeral insurance is designed to provide your dependants with a lump sum payment in the event of your death. This payment can be used to cover the different types of funeral costs, including:

How much is funeral insurance going to cost me?

The cost of your funeral insurance will depend on a range of factors including:

• Sum insured. This is the amount you originally agree to insure. Most policies range from $15,000-$30,000.
• Age of the insured person. The older the person is at application, the higher the premiums will generally be.
• Whether or not the applicant smokes. Smokers will have a higher premium.
• Gender. Women tend to have a greater life expectancy than men, and hence cheaper premiums.
• Applicants State or Territory. Government fees to insurers may differ from state to state. This is passed onto your premium.

The average annual cost of premiums by age group

Figures are based on Australian Securities & Investments Commission's 2015 study of the funeral insurance sector.

To get a more accurate idea of how much funeral insurance will cost you, get a personalised quote

How can I pay my premiums?

As with other forms of insurance, funeral insurance plans often include the option of stepped or level premiums.

• Stepped premiums. Your premium is based on your age, your sex and the sum insured and is then recalculated every birthday, becoming progressively more expensive the older you get.
• Level premiums. Your premium is also based on your age, your sex and the sum insured, but you are insured for an agreed amount and your premium remains the same for the life of the policy (apart from yearly CPI increases).

So which one is right for me?

The advantage of stepped premiums is that you pay less at the beginning of your cover, while the advantage of level premiums is that you always know roughly what your premium will be and can budget accordingly. The option you choose on whether or not you expect your income to increase over time.

To get a better understanding, you can read more about funeral insurance premiums here.

How do I get the most value out of my funeral insurance policy and not get ripped off?

When you apply for funeral insurance you should always look for a value guarantee feature. This will ensure that you never pay more than what you insured at the start. Value guarantees come in the form of either:

1. Guaranteed payouts
   
2. Premium caps

1. What is a guaranteed payout?

A guaranteed payout means that you'll be paid out the greater amount between your premiums paid and the sum you originally insured.

2. What is a premium cap?

Premium caps ensure that your premiums are stopped once they reach the sum you originally insured.

Is funeral insurance a rip off?

Funeral insurance has come under scrutiny in recent years, due to the long term cost of some premiums being greater than the cost of a funeral itself. Steps have since been taken to make funeral insurance a more transparent product. This includes:

• Flat premiums. Premiums that never go up during the life of the policy.
• A grace period of up to three months. If your policy is cancelled due to an inability to make premium payments, you're given grace period where your policy can be reinstated.
• 'Paid up' insurance. If your policy is cancelled due to an inability to make payments but you have held the policy for at least 10 years, the policy will become a 'paid up insurance' product. This means that you can receive a percentage of the sum insured e.g. 40% of $15,000, and premiums are no longer payable.
• Premium discounts. You can receive a premium discount after a certain period of coverage, specified by the policy e.g. 5 years
• Premium caps. This is where premiums are capped at the sum you originally insured. This ensures that consumers never pay more in premiums than the benefit amount.

To ensure you're not ripped off, make sure your policy includes value guarantees and avoid the following traps:

Make sure you steer clear of these traps

While funeral insurance has a lot of benefits and is easy to obtain compared with other forms of insurance, there are some traps to be wary of when applying for cover. These include:

• Buying a policy without comparing. Customers can find themselves buying bad policy after seeing a television ad or after being cold called for funeral insurance. Make sure you understand the policy and how it compares with its peers before buying. Remember, you're entitled to cooling off rights, which means you can cancel a policy for any reason within 10 business days.
• Paying more in premiums than a funeral would cost. Avoid this by looking for policies that offer capped premiums once the sum insured is reached or a guaranteed payout.
• Buying the cheapest policy. You could find yourself underinsured if a cheap policy doesn’t contain the basic benefits listed above.
• Not keeping up with premium payments. Most funeral insurance providers do not offer the policy suspension option common in other forms of insurance, which means that your policy could be cancelled if you’re more than 28 days in arrears. Some insurers do offer a premium pause option for up to three months, but only accidental death claims are paid during this time.
• Not checking the length of the cooling-off period. If you change your mind about buying a policy and wait too long before notifying the insurer, you may not be able to get a refund.
• Not being aware that premiums rise over time. Premiums and benefits increase over time to keep pace with inflation. If you’re on a fixed income, this needs to be factored into your budget or your funeral insurance could become unaffordable.
• Levelled premiums that rise with inflation. Although this means your sum insured may rise with inflation as well, this can be an unaffordable cost for some. Check with your insurer to see if your sum insured is automatically increased.

How else can I pay for my funeral

If you’re unsure about whether you want or can afford funeral insurance, there are other funeral payment options you can explore.

• Prepaid funeral. This is where you pay for your funeral upfront so the funds are there when needed.
• Funeral bond. .This is where you pay in a lump sum or by instalments and have your money invested by an insurance company or friendly society
• Super or life insurance. This is where you have life insurance or life insurance through your superannuation that provides cover for funeral expenses
• Savings account. This where you put your money into an account regularly to save for your funeral expenses.

Breakdown of my options

What questions should I be asking about funeral insurance cover?

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