Are you and your partner looking for funeral insurance? Discover the convenience of a joint policy.
A couples funeral insurance can provide both you and your partner the peace of mind of knowing that you're each able to take care of funeral expenses in case one of you passes away.
Why should we get a joint policy?
Some of the reasons couples get funeral insurance together include:
- Convenience of the same policy. This allows you and your partner to both carry a policy with the same terms, benefits and claims procedures.
- Joint policy discounts. Some funeral insurance policies offers discounts (Some up to 20%) for joint policies.
- The same funeral insurance benefits. You're both able to access the same funeral insurance benefits as a single policy.
Apart from the convenience of you and your partner having just one policy and one point of contact, the main advantage is the discount many insurers offer for taking out a joint funeral plan. This can be as much as 20% off the cost of the premium, which can make it an attractive alternative to taking out two separate policies.
Who offers joint funeral insurance plans?
|Brand||Joint policy discount?|
|Real Funeral Expenses Cover||Not stated|
|Apia Funeral Insurance||20% off|
|Australian Seniors||Not stated|
|Metlife Funeral Insurance||20% off|
|InsuranceLine Funeral||15% off|
|NIB Funeral Insurance||10% off|
|Suncorp Funeral Insurance||20% off|
|Aussie Funeral Insurance||Not stated|
|GIO Funeral Insurance||20% off|
The benefits offered in a joint funeral plan are much the same as those in a single plan with the convenience of one policy. Typical features include:
- Choice of cover level. A range of cover options, typically from $4,000 to $30,000.
- Capped premiums. Your premiums become free once you have paid an amount equivalent to the sum insured.
- Accident benefit. The benefit amount is payable if you die from an accident in the first 12 months.
- Early payment benefit. Payment of the benefit amount if you are diagnosed with a terminal illness (usually this is only available after the first 12 months).
- Premium pause benefit. The option to pause premium payments for up to 3 months (during which only accidental death will be paid).
- Automatic indexation benefit. Your sum insured and premium amount increase each year to keep pace with inflation.
The main conditions of a joint funeral plan are as follows:
- Both policyholders must nominate the same premium options. They are free to choose different benefit amounts (sums insured), but the premium options must be the same for both.
- Some policies require that both joint policy owners must be immediate family members (typically married or de facto partners).
Who does the payment go to?
Joint policy owners need to nominate a beneficiary who will receive the benefit payable if:
- One of the policy owners pass away
- Both of the policy owners pass away
This ensures that there is no delay in the payment of the benefit.
What if no beneficiary is nominated?
If no beneficiary is nominated, the benefit will usually go to the surviving policy owner. If both policy owners die, it will be paid to their estate, which can mean delays before the money is available to cover funeral expenses.
If your partner is not able to take out funeral insurance for any reason, it is possible for you to apply for a policy on their behalf. You can even make their premium payments for them. The thing to remember is that, regardless of who applies for cover and who pays the premiums, the person named in the policy is the policy owner and the funeral plan applies solely to them and their funeral cover.
Your partner won't receive a payout if:
- You pass away in the first 12 months of you policy due to illness
- You pass way in the first 12 months due to self-inflicted harm
- You fall terminally ill within the first 12 months
You read more about when and when you won't be paid here.
So how do you find the right funeral plan for you and your partner? The following steps will help you narrow down the field;
- Work out roughly how much your funerals will cost and therefore how much cover you will need.
- Look for a policy that provides all the benefits listed previously in this guide (such as capped premiums to avoid paying more than your funeral is worth).
- Know what the funeral insurance traps and pitfalls are by reading as much as you can on the subject online.
- Read product reviews detailing things such as premium costs and exclusions and compare quotes from a number of different insurers (both of which you can do on a comparison site such as finder.com.au).