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Best funeral insurance

We reviewed 6 funeral insurance policies – see our top picks on price, value and trust to help you choose the best funeral insurance for your needs.

Top pick:
Trust
  • High payout - up to $25k
  • Terminal illness option
Top pick:
Good value
  • Premiums reduce 5% after 5 years
  • Save 10% as an Everyday Rewards member

What's the best funeral insurance?

There's no single best funeral insurance policy. After all, each of our circumstances are different. You can use our top picks as a starting point, but you should find the best cover for your needs.

Best funeral insurance in July 2024

    • Read the detailed methodology we used to choose these policies.

      Top pick for trust: Apia

      Apia

      What we like about Apia:

      • It's issued by TAL, which insures some 4.5 million Australians and had only 8.9 claims-related disputes per 100,000 lives insured.
      • Apia offers a 5% discount if you add another adult to your funeral insurance policy. One senior-friendly feature is that it will also reduce a policyholder's premium by 5% following their 84th birthday.
      • Only level premiums are offered – this means your insurance generally won't increase in price as you get older. Stepped premiums, on the other hand, tend to go up on your policy anniversary.

      Get quote

      Top pick for good value: Woolworths

      Woolworths logo

      What we like about Woolworths:

      • Your premium is guaranteed to reduce by 5% for every 5 continuous years that you hold your policy. The only other provider with a similar feature was Medibank, but its discount was just 3%.
      • Reassurance that a payout with Woolies won't be less than the total you've paid in premiums since taking out cover.
      • Further ways to save. Members of Woolies' popular Everyday Rewards scheme get 10% off for the life of their policy. This was more attractive than Real Insurance's promise of 10% back in premiums after 12 months of your policy.
      Learn more about Woolworths funeral insurance

      How we chose top picks for funeral insurance

      Our editorial team looked at 25 insurance providers in Australia that offer funeral cover. Most brands offer payouts built within their life insurance policies (the benefit is often referred to as "final expenses" cover).

      However, we only included providers that offer standalone funeral insurance.

      Those that let you take out standalone funeral cover were: Australian Seniors, Apia, Guardian, Insuranceline, Real Insurance and Suncorp.

      We chose each top pick because of its value and features compared with 5 other providers in Australia as of July 2024.

      Here's more on how we chose each top pick.

      Still unsure which policy is right for you? Compare more Australian brands

      1 - 5 of 6
      Name Product Maximum cover Maximum entry age Average claims acceptance rate Average claim time Sum Insured Expiry age
      Real Funeral Cover
      $15,000
      79
      99.30%
      0.8 months
      $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.
      Seniors Funeral Insurance
      $15,000
      79
      99.30%
      0.8 months
      $1,926 million
      100th birthday
      Get up to $15,000 in funeral cover, including an extra 25% bonus cover when you turn 85.
      Apia Funeral Insurance
      $15,000
      80
      99.70%
      0.6 months
      $3,366 million
      No expiry age as long as premiums are paid
      Save 5% on funeral insurance premiums every year for the life of your policy. Offer ends 30 Sept 2024. T&Cs apply.
      Suncorp Funeral Insurance
      $15,000
      80
      99.70%
      0.6 months
      $3,298 million
      No expiry age as long as premiums are paid
      Save 5% on funeral insurance premiums every year for the life of your policy. Offer ends 30 Sept 2024. T&Cs apply.
      Insuranceline Funeral Insurance
      $15,000
      80
      99.70%
      0.6 months
      $3,366 million
      No expiry age as long as premiums are paid
      Protect your family with an Insuranceline policy and you can go into the draw for a chance to win a $1,000 gift card. New Customers only, T&Cs apply. Competition entries close on 31 July 2024.
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      Why compare life insurance with Finder?

      • You pay the same price as buying directly from the life insurer.

      • We're not owned by an insurer (unlike other comparison sites).

      • We've done 100+ hours of policy research to help you understand what you're comparing.

      Best funeral insurance: Features to look for

      FeatureDetailsHow to compare
      Benefit amountBenefit amountThis is the lump-sum benefit your policy will pay to your beneficiaries when you die.Most plans in Australia range between $3,000 and $15,000 in cover. Apia and Suncorp let you increase the sum insured to $25,000. Australian Seniors pays an accidental serious-injury benefit of up to $45,000 (three times the Funeral Insurance Benefit Amount).
      Guaranteed acceptanceGuaranteed acceptanceThere's no medical exam or blood test needed prior to being offered cover.As long as you meet the age eligibility requirements – usually ranging between 40 and 80 years of age – you'll automatically be accepted for your insurance.
      DiscountsOffersMany providers offer deals when you sign up to a policy as well as loyalty discounts and early cash-out options.There are 2 offers worth mentioning: Real Insurance gives back 10% of your premiums after 12 months and Australian Seniors gives a 25% bonus cover when you turn 85.
      Special dealPolicy expiry ageWhether your policy ends during your lifetime will be an important point of comparison for some people.5 out of 8 providers we compared specify that policies never expire as long as you keep up with your premium payments. 3 brands – Real Insurance, Australian Seniors and Guardian Insurance – offer cover until the policyholder's 100th birthday.
      Premium choicePremium choiceA choice of stepped premiums (that increase over time) or level premiums (a fixed amount for the life of the policy).Choose how affordable your cover is in the short and long terms based on your needs.
      Payout timePayout timeSome providers call out that payouts are typically made within 1 day of receiving all necessary claim details.3 providers – Suncorp, Apia and Insuranceline – called out their fast payout times of within 24 hours.
      Terminal illnessTerminal illness benefitGet an early payout if you're diagnosed with a severe illness for which there's no known cure.All 8 providers we compared offer this benefit payment.
      Accidental deathAccidental death coverIf you pass away after an accident, your family may get a payout of 3 times the amount you were insured for.Again, all 8 providers on Finder offer this cover type as standard. They also offered a lump sum for an accidental serious injury.

      Before you get funeral insurance, make sure the provider offers capped premiums. This means your funeral insurance payout shouldn't exceed the total amount you've paid in premiums. It's really important a policy has this. Otherwise, you may as well just be putting money aside. If you're unsure, ask the insurer directly.

      How much will a funeral actually cost me?

      The cost of funerals varies greatly, with a basic cremation costing around $4,000 and a more elaborate service costing anything up to $15,000. Factors that might influence the cost of your funeral include the following:

      • Whether there are religious or family requirements
      • Whether there will be a wake
      • Whether you are being buried or cremated
      • If buried, the cost of a burial plot, casket, gravestone, transportation, etc.
      • If cremated, the cost of an urn, flowers, funeral director, etc.
      • Mandatory costs such as newspaper notices, death certificate, etc.

      The amount of funeral insurance you need will depend largely on the type of funeral you're planning for.

      When will funeral cover typically pay out benefits to my dependants?

      Understanding whether your dependants will be paid is essential to ensure your policy provides value. Payment is typically dependent on 2 factors:

    1. The circumstances of an insured person's death or terminal illness
    2. How long after cover is issued the death or terminal illness occurs

    Example breakdown of how a funeral insurance policy may pay out

    Cause of deathTimelineWhat's paid?
    AccidentDuring the first 12 months of holding the policyThe sum insured
    Sickness and other causesDuring the first 12 months of holding the policyPremiums are refunded
    Due to natural causes, accidents, sicknesses and other causesAfter 12 months of holding the policyThe sum insured
    Cause of terminal illnessTimelineWhat's paid?
    Due to natural causes, accidents, sicknesses and other causesDuring the first 12 months of holding the policyNo payment – the policy remains and you become eligible at the 12-month mark
    Due to natural causes, accidents, sicknesses and other causesAfter 12 months of holding the policyThe sum insured

    Make sure you check the product disclosure statement for exact situations where a payout will be made.

    What should I be aware of with funeral insurance?

    Funeral insurance has a few potential pitfalls you'll want to look out for, including the following:

    • Paying more over time than a funeral would cost. Choosing a policy with capped premiums would help you to avoid this risk. Some policies now state that you'll never receive less money than the total amount you've paid in premiums.
    • Choosing the cheapest policy. If it doesn't cover all the basic benefits, you could find yourself underinsured.
    • Falling behind with premium payments. This could lead you to having your policy cancelled. Finding a policy with a "premium pause" option could give you breathing space.
    • Choosing a stepped premium policy if you're on a lower income. Stepped premiums increase with your age and could become unaffordable later in life.

    Keep in mind: When comparing policies, get on the front foot by raising any concerns or questions with a provider when reviewing their insurance.

    Why you can trust Finder's life insurance experts

    freeYou pay nothing. Finder is free to use. And you pay the same as going direct. No markups, no hidden fees.
    expert adviceYou save time. We spend 100s of hours researching life insurance so you can sort the gold from the junk faster.
    independentYou can trust us. We say it like it is. We aren't owned by an insurer and our opinions are our own.

    Frequently asked questions

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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 259 Finder guides across topics including:
  • Car, home, life, health, travel and pet insurance
  • Managing the cost of living
  • Money-saving tips

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