Cheap funeral insurance
Cheap funeral insurance policies are available but there’s more to consider to ensure you’re not being rorted.
Key takeaways
- It's important to read the T&Cs to ensure you don't pay more in premiums than the cost of the actual funeral.
- Be sure to understand the expiry age. Some policies expire without any guarantee of payout at expiry.
- The cheapest policy isn't always the best, keep reading for why this is the case.
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Tips to find a cheap, but good, funeral insurance policy
When it comes to funeral insurance, simply looking for the cheapest policy may not serve you well. This is because there are policies out there that can:
- Expire before you pass away, meaning you'll pay the premium the whole time without being entitled to any funeral later
- Cost more in premiums than your actual funeral would cost
Instead, there are ways to hunt for a cheaper policy, while ensuring it'll actually deliver on what you need.
- Look out for policy discounts. You can get policy discounts up to 20% off (for example, for a joint policy with your partner).
- Choose a policy that is affordable in the long term. Policies can offer fixed premiums that ensure that the cost never goes up.
- Find a policy that offers value guarantees. Value guarantees ensure that you don't pay more in premiums than the sum you've insured.
- Compare policies online. Read reviews of policies and compare cover with an adviser on Finder.
Funeral insurance deals and discounts
| Store | Discount | |
|---|---|---|
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Get 10% of your first year's premium back after 12 months Receive 10% of premiums you’ve paid in the first 12 months with The Real Reward Cover. Last verified |
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Get a $100 eGift card Take out an Apia Funeral Insurance policy and get a $100 eGift card after 4 months of cover. Offer ends 31/03/2025. T&Cs apply. Last verified |
Deal ends |
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Get 12 months funeral insurance for the price of 11 When you take out a new Apia Funeral policy. T&Cs apply. Last verified |
Understanding stepped vs level funeral insurance premiums
Stepped premiums: These are premiums that increase as you age. So, it may be cheap now while you're younger but it could increase drastically over time as you age.
Level premiums: These premiums stay the same price throughout the lifetime of your policy. It means they might start out a little more expensive but they won't increase due to your age (they may increase in line with inflation though).
Here's a graph to help you understand how stepped vs level premiums should be considered when looking at the long-term affordability of the policy.
| Time holding the policy | Stepped premium | Level premium |
|---|---|---|
| 0 - 3 years | $320 | $400 |
| 3 - 6 years | $360 | $400 |
| 6 - 9 years | $410 | $400 |
| 9 - 12 years | $500 | $400 |
These figures are made for illustrative purposes only. The actual cost of your premium will depend on your policy and other factors including your age and sex.
Our expert says
Our expert says
"There are other options available for those who want to plan for a funeral in advance to ensure affordability. You could deposit money into a high interest savings account, take out a life insurance policy or look into arranging a prepaid funeral. If you end up going with a funeral insurance policy, ensure you take the time to thoroughly read the T&Cs to be sure it's right for you and your family."
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