Funeral insurance Australia

Funeral insurance pays a lump sum benefit so that your loved ones are able to cover the cost of your funeral. However, there’s a bit to consider before taking it out.

Compare funeral insurance in Australia

1 - 3 of 6
Product AUFLI-FUN Maximum cover Maximum entry age Minimum sum insured Terminal illness cover Sum Insured Expiry age
$15,000
80
$3,000
$3,366 million
No expiry age as long as premiums are paid
Take out an Apia Funeral Insurance policy and get a $100 eGift card after 4 months of cover. Offer ends 03/03/2025. T&Cs apply.
$15,000
79
$3,000
$1,926 million
100th birthday
Get back 10% of premiums you've paid after your 12-month policy anniversary – as part of The Real Reward programme.
$15,000
79
$3,000
$1,926 million
100th birthday
Get up to $15,000 in funeral cover, including an extra 25% bonus cover when you turn 85.
loading

What is funeral insurance?

Funeral insurance is a type of cover where you pay a monthly premium while you're still living, and in exchange, your family gets a lump sum payout after you pass away, to help cover the cost of your funeral.

Funeral insurance benefits typically pay out up to $15,000.

Sometimes, when you reach a certain age, you no longer have to pay insurance premiums, but your insurance company will still pay out the benefit when you die.

You can usually pay for funeral insurance in two ways: either with level premiums or with stepped premiums.

  • Stepped premiums: Based on your age, stepped premiums will increase as you get older.
  • SteppedLevel premiums: These are more expensive to begin with, but they don't increase over time.

Pros and cons of funeral insurance

Pros

  • Assurance that your family can afford your funeral after your passing
  • Little to no medical underwriting needed to take out a policy
  • If you die accidentally within 12 months of taking out your policy, you'll still get the full payout value.
  • Some funeral insurers will double or even triple the payout if you die accidentally.

Cons

  • You could end up spending more on premiums than you would have spent on a funeral
  • If you live past 100, the policy could expire with no refund of premiums paid
  • If you're over 80, you could struggle to be accepted by the insurer

What will funeral insurance cover?

The payout from a funeral insurance policy doesn't legally have to be used on your funeral - it's just designed for this use. It can be used to organise:

  • Service & cremation or burial: This can cost upwards of $6,600
  • Funeral flowers: Depending on what you opt for, this can cost upwards of $200
  • Newspaper notice: This is typically $310+
  • Family car: Depending on the vehicle and distance travelled, this can cost from $490

What else can funeral insurance cover?

Funeral insurance can cover more than just the cost of your burial or cremation. Some policies offer additional benefits, which could make a policy more worthwhile:

  • Accidental death cover. Some insurers will double, or even triple, your payout if you die accidentally. Sometimes it comes as standard, other times it's an optional extra.
  • Terminal illness cover. Some policies will pay your benefit if you're diagnosed with a terminal illness. You can be involved in the planning of your funeral, or use the funds however you see fit.
  • Accidental injury benefit. Some policies will pay a lump sum if you suffer a serious injury under a certain age. Eligible injuries include paralysis, loss of sight and loss of limbs.

What to look for when choosing funeral insurance

Peta Taylor's headshot
Our expert says

"Funeral insurance can be great for those who want assurance that their family can afford their funeral when they pass away. However, it's important to find a policy where you won't end up paying more in premiums than you would for the cost of the actual funeral. This can be done by looking for a policy that includes maximum premium caps or value promises."

Publisher of Insurance

How much do funerals cost?

Funerals in Australia typically cost between $4,000 - $15,000. This cost is so varied because it really depends on the size of the funeral, location and which features you choose to include.

Here's a rough price guide of expenses to consider:

Funeral expenseStarting price
Simple service cremation$7,500
Simple burial$6,600
Family vehicle$490
Funeral flowers$270
Orders of service$200
Newspaper / online service$310
Embalming$650
Temporary grave marker$190

FAQs

Peta Taylor's headshot
Written by

Publisher of Insurance

Peta Taylor is a publisher at Finder, working across all of insurance. She's been analysing product disclosure statements and publishing articles for over 2 years. Peta is passionate about demystifying complex insurance products to help users make well educated decisions with confidence. Peta is part of Finder's insurance awards team and works alongside editorial and insights experts to bring users the best insurance products every year. See full bio

James Martin's headshot
Co-written by

Editor

James Martin was the insurance editor at Finder. He has written on a range of insurance and finance topics for over 7 years. James often shares his insurance expertise as a media spokesperson and has appeared on Prime 7 News, WIN News, Insurance News, 7NEWS and The Guardian. He holds a Tier 1 General Insurance (General Advice) certification and a Tier 1 Generic Knowledge certification, both of which meet the requirements of ASIC Regulatory Guide 146 (RG146). See full bio

James's expertise
James has written 205 Finder guides across topics including:
  • Car, home, life, health, travel and pet insurance
  • Managing the cost of living
  • Money-saving tips

Read more on this topic

Go to site