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Planning for your funeral is probably not at the top of many people's list. However, putting in a little time and effort by investing in funeral insurance now, could save your loved ones a big hassle in the future, at a time when they should be concentrating on their grief.
To get the most value out of funeral insurance, compare benefits from different brands before you buy. The table below lets you compare benefits from different Finder partners.
Click on Get Quote to see what other options are included in different brand's funeral insurance.
Funeral insurance is a type of protection taken out purely to cover the cost of your funeral after you die. Funeral insurance pays a lump sum benefit, usually up to $15,000, so that your loved ones are able to cover the cost of your burial or cremation without using their own money, or even going into debt.
It typically appeals to people over the age of 50 who can no longer find an affordable life insurance policy, perhaps due to pre-existing medical conditions. It is also handy for those who don't have savings set aside to pay for a funeral after they die.
You pay a regular fee, usually every fortnight or every month, and your insurance company promises to give a lump sum payment to your family when you die. Typically, insurance companies will offer between $5,000 and $15,000 as a benefit.
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.
Funeral insurance gives your estate a lump sum when you die, so that they can pay for your funeral without worrying about the cost. Typical funeral expenses include:
Funerals can cost as little as $4,000 for a simple cremation, so if you want cheap funeral insurance, there are certainly options out there. However, funerals can cost up to tens of thousands of dollars for a more elaborate ceremony.
A 2018 Finder study analysed the average price of funerals in major Australian cities. The table below shows how the costs compare.
Rank | City | Average burial cost | Average cremation cost |
---|---|---|---|
1 | Sydney | $7,961 | $8,553 |
2 | Canberra | $6,654 | $7,622 |
3 | Brisbane | $7,810 | $7,354 |
4 | Adelaide | $7,417 | $6,965 |
5 | Perth | $7,875 | $7,441 |
6 | Hobart | $7,068 | $6,716 |
Total average | $7,464 | $7,442 |
Funeral insurance has its benefits and its drawbacks. Take some time to understand these properly, so that you don't buy a policy that doesn't fit your personal needs.
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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:
In addition to the benefits above, there are a few key features that you should always consider when shopping for a policy, so that you can find the best funeral insurance for you:
Funeral insurance usually appeals to seniors more than any other age bracket. However, it's important to know that companies won't offer cover to people over a certain age, usually somewhere between 65 and 80, depending on the insurer.
Luckily, there are still plenty of funeral insurance options for seniors under the age of 80.
If you want your whole family to have the security of funeral insurance, you may want to consider funeral insurance for families or funeral insurance for couples.
Buying funeral insurance as part of a family or couple can come with a couple of key benefits, including multiple person discounts and convenience.
Funeral insurance is a good option for people who want to help their family out financially, but there are some traps to watch out for. A couple of key drawbacks are:
Yes. Funeral insurance isn't the only way to pay for your funeral. Consider whether these other options are right for you:
If you don't have funeral insurance, the financial burden of paying for your funeral will fall on your loved ones at a time when they are already experiencing a loss.
It depends on the type of funeral you want. The average funeral costs around $4,000 for a basic cremation and anywhere up to $14,000 for a more elaborate service.
No, the benefit paid upon your death is generally tax free.
You can have more than one funeral insurance plan however it is not advisable as one policy may not payout if you have another policy in place. Instead, look to increase your sum insured if your existing funeral insurance is not enough.
Most policies will cover for all causes of death after the policy has been held for 12 months. If your death occurs within the first 12 months of holding the policy then you are only covered for accidental deaths.
You can nominate a person to receive your funeral insurance benefit. Otherwise, it will be paid to your estate or to the surviving policyholder if it is a joint policy.
Find out if you need life insurance or funeral insurance and what the major differences are.
We took a look at a popular brand's funeral insurance product to see how much it might cost.
Find out why online funeral streaming is a reality for people with family scattered throughout the world.
Planning for future funeral expenses? Find out what plans are available in Australia.
If you're a pensioner and are planning your funeral expenses, then you should consider getting a funeral insurance policy.
After funeral insurance for the family? Compare quotes from Australian insurers.
hello.
Can I take out funeral insurance for my 85 year old mother? Born 26 November 1934. What companies offer insurance for senior citizens. Regards
Hi Nancy,
Thanks for your inquiry.
Some insurers have age limits on their funeral insurance cover. Since your mother is over 80 years of age, you may wish to inquire whether she is eligible to be covered and for how long she is able to remain covered. You can get a quote from our list of funeral insurance brands. You can also check on funeral cost in Australia to know what costs are involved with a funeral.
As a friendly reminder, carefully review the Product Disclosure Statement of the product before applying. You may also contact the insurance provider should you have any questions about their policy.
Hope this was helpful. Don’t hesitate to message us back if you have more questions.
Best,
Nikki
I would like to know the cost of a cremation for my partner who is 80yrs old?
Hello Pauline,
Thank you for your comment.
I may not be able to provide a certain figure about your partner’s funeral costs as it depends on your policy but generally, a basic burial is $3,600. You may check our page about funeral insurance cost in Australia for your reference.
Meanwhile, check our list of funeral insurance in Australia to see providers that offer funeral insurance.
You can use the comparison table to compare quotes from different brands. You may also scroll down the page further to read more about the pros and cons, coverage, and what to consider when choosing funeral insurance.
Regards,
Jhezelyn
what is the process if an insured person passes away. who do we contact and will the other partners premium rise
Hi Steve,
Thank you for your question. It’s a good idea to contact the insurer directly. They can assist you with the appropriate steps and advise you on any changes to your premium.
All the best,
Zubair
can I transfer my funeral fund from one company to another company I have been in it for about 5 years ,
Thank you
Hi Alan,
Thank you for your question.
finder.com.au is a comparison and information service and we are not permitted to provide our users with personalised financial advice or product recommendations.
As funeral insurance is a standalone product, you may not need to “switch” insurers but rather just cancel the old policy and get the cover with the new insurer.
You should contact the insurance brand you are considering getting the cover with and your current funeral insurance brand for more information.
All the best,
Zubair
what a bloody pain is this site………. trying for in excess of 10 mins to access freedom ins phone center round and round I go !! maybe this will elicit some response ring me to discuss policy
Hi John,
Thanks for getting in touch. You’ve actually contacted finder.com.au, which is a financial comparison service and not an insurer. If you would like to speak with Freedom Insurance, you can do so by calling 1300 88 44 88.
All the best,
Richard