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Funeral Insurance for Pensioners

Pensioner and looking for funeral cover? Compare over-65 cover with no medical exams.


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Planning for funeral expenses is an important consideration for both pensioners or those entering retirement, who wish to remove the burden of funeral expenses of loved ones.

Compare funeral insurance and apply securely

Name Product Maximum Cover Maximum Entry Age Minimum Sum Insured Premium wont increase with your age Expiry Age
Insuranceline Funeral Insurance
No expiry age as long as premiums are paid
Take out an InsuranceLine Funeral Insurance policy and you could receive a bonus $100 gift card. T&Cs apply. Ends 31 March 2021.
Apia Funeral Insurance
No expiry age as long as premiums are paid
Get up to $15,000 in funeral cover with Apia Funeral Insurance.
Real Guaranteed Funeral Insurance Flexi Plus
No expiry age as long as premiums are paid
Receive up to $15,000 in funeral cover. Premiums reduce by 5% every 5 years you hold your Policy.
Medibank Funeral Insurance
No expiry age as long as premiums are paid
Medibank health members save 10% every year. T&Cs apply.

Compare up to 4 providers

8 October 2018 update

A word on funeral insurance

The funeral insurance industry has received criticism in the past for paying out less overall than the amount it collects in premiums. As a policyholder however, this type of situation is mostly avoidable if you understand a few things about cover before buying.

Maurice Thach

by Maurice Thach

Life Insurance Publisher for

Do I need to undergo any medical exams?

There is usually no medical underwriting involved with funeral insurance. However the exception is after a certain age (depending on the insurer), when a medical examination will be required before cover is offered. The only health question normally asked is whether you are a smoker. If you smoke, you will pay a higher premium.

What are the age requirements for funeral insurance plans?

ProviderAge requirements
Apia Funeral InsuranceBetween 45 and 80
Australian SeniorsBetween 18 and 79
InsuranceLineBetween 25 and 80
Real Funeral Expenses CoverBetween 18 and 79
Suncorp Funeral InsuranceBetween 45 and 80

Why should I get funeral insurance?

Simple application process

How can this help me?

You can apply over the phone or onlineFuneral insurance can be obtained without a long application process.
No medical examinations*Unlike some other forms of insurance, there is no medical examination involved. The only health question you are asked is if you're a smoker. If you are a smoker you will have a higher premium.

Payout for your dependents

What does this mean?

Fast payoutYour benefit is paid out to your children or family, usually within two days of your passing.
Lump sum paymentOne whole payment is made to cover your funeral and final expenses.
Accidental death coverYour benefit is paid in full if due to an accident, you pass away during the waiting period of your policy.
Terminal illnessYour benefit is paid if you're diagnosed with a terminal illness after the waiting period of your policy.

*No medical examinations applies if you're within the policy's age requirements. Policies may not cover over a certain age (e.g. 90 years old) or require a medical examination

Look out for these features if you're after cover

Look out for these features in your policy if your after funeral insurance.

Features that can protect pensioners

What does this mean?

Choice of premium typeChoose between levelled or stepped premiums. A levelled premium doesn't rise as you get older which can be useful as you start relying on your pension.
Premium capsThis caps your premiums (when they reach a certain total) to ensure that you don't spend more than what your family will be paid out.
Payout guaranteesYou're paid out the greater between your total premiums paid and your sum insured.
Grace periodsIf there ever comes a time where you're unable to make a premium payment, some policies will offer a grace period (usually 1-3 months) for you to reinstate payments. You are still covered for accidental death during this time.


How can this help me?

Global coverageCover from anywhere in the world, around the clock.
Free will kitsSome policies include a will kit: Use this to help with your estate planning.

How much will funeral insurance cost me?

The above premium estimates are based on Australian Securities & Investments Commission's 2015 study.

Can I pay for cover with my pension?

Based on the above estimates, if you were to start paying for a premium at the age of 65 years then you would pay on average, $620 in premiums per year.

Fortnightly cost

The fortnightly amount you would be expected to pay under these circumstances is roughly $24 per fortnight.

Consider your fortnightly expenses

If you are able to take out $24 per fortnight after covering all your living expenses with your pension, then you can afford funeral insurance.

Consider your personal circumstances

While you may be able to afford funeral insurance, consider your personal circumstances. You may wish to save for a funeral instead or put your left over pension elsewhere.

Keeping payments affordable with a fixed income or pension

Funeral insurance is usually paid with a choice of stepped or level premiums.

Stepped premiums. Calculated on your age at the time of applying and increase each year as you get older.

Level premiums. Fixed amount agreed upon at the time of taking out your policy and remain the same for the life of your policy.

Which payment type is right for me?

If you are on a low fixed income, such as a pension, level premiums mean your funeral insurance will always cost the same.

Beware of the automatic indexation option

If your policy has automatic indexation enabled, your premium may still go up even if it's levelled. This will increase the amount you've insured to keep pace with inflation. If you're on a fixed income, it may be necessary to opt out of this option.

Am I covered if I have been diagnosed with a terminal illness?

Funeral insurance will pay you out for a terminal illnesses after the policy's waiting period. This is usually a 12-month period, depending on the policy.

What if I become terminally ill during or before the waiting period?

During the first 12 months of your policy, most insurers will only pay a benefit if you pass away as the result of an accident. If you are diagnosed with a terminal illness during that 12-month period, most policies will offer a refund on your premium payments.

Be aware of these funeral insurance pitfalls

Common mistakesHow do I avoid this?
Paying more in premiums over the years than your funeral would actually cost youPremium caps. Choose a policy that caps your premiums when you’ve paid the benefit amount, with cover continuing free after that.
Not being able to keep up your payments and losing all you have previously paidPremium pause options. Look for a policy that offers a premium pause option or a grace period if you can't make payments.
Not taking out a high enough benefit amount to cover your funeral costs.Automatic indexation. Take out slightly more than you would currently need to allow for inflation over time or to opt for automatic indexation.

Television and other forms of advertising

Funeral insurance is heavily advertised to pensioners on daytime television and through telephone cold calling. It is promoted as being a relatively small cost (often the price of a cup of coffee) in return for the peace of mind of knowing you won’t be burdening your loved ones with your funeral expenses.

However, unless you opt for a level premium, the cost will increase over time to where it could become unaffordable. Purchasing funeral insurance should be a considered decision, where your rights and options are clearly explained; something which is simply not possible in a 30-second commercial.

Steps to take if you're not satisfied with the policy you've purchased

If you find yourself being rushed into taking out a funeral policy that, upon reflection, isn’t what you wanted, you can still get your money back if you are within the cooling-off period.

Australian Consumer Law entitles you to a minimum ten-day cooling off period if you buy a policy. If you change your mind, you can ask the insurer for a full refund of any premium paid, providing you are within that period. Fortunately, most insurers offer a 30-day cooling off period, so you should have plenty of time to be able to review your policy and cancel it if it doesn’t meet your needs.

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* The products compared on this page are chosen from a range of offers available to us and are not representative of all the products available in the market. There is no perfect order or perfect ranking system for the products we list on our Site, so we provide you with the functionality to self-select, re-order and compare products. The initial display order is influenced by a range of factors including conversion rates, product costs and commercial arrangements, so please don't interpret the listing order as an endorsement or recommendation from us. We're happy to provide you with the tools you need to make better decisions, but we'd like you to make your own decisions and compare and assess products based on your own preferences, circumstances and needs.

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4 Responses

  1. Default Gravatar
    MarieJanuary 29, 2019


    I am 64 & looking for Funeral Insurance to suit my budget. Being on a DSP pension & living in government housing?

    • Avatarfinder Customer Care
      JeniJanuary 31, 2019Staff

      Hi Marie,

      Thank you for getting in touch with finder.

      You’re looking at the right page. Kindly refer to the comparison table to start comparing your options. Once you have chosen a certain insurer that you wish to get your funeral insurance with, please click on the Get quote button to be redirected to the insurer’s official page and proceed on getting quotes or learn more on their offered products. As per this page, the average annual premium for users ages 60-64 is $520. If you are able to take out $24 per fortnight after covering all your living expenses with your pension, then you can afford funeral insurance.

      I hope this helps.

      Thank you and have a wonderful day!


  2. Default Gravatar
    ThereseMay 21, 2017

    Hi,was just wanting to know if I can take funeral cover out for my elderly parents as they cannot afford it.

    • Default Gravatar
      JonathanMay 22, 2017

      Hi Therese!

      Thank you for inquiry.

      Although you can help paying for your parent’s funeral insurance premium, the policy should be in your parent’s names. You can check this page to compare funeral insurance providers. Please get in touch with the insurer to discuss your options and you can also speak with a financial adviser for a professional advice.


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