Is it worth getting funeral insurance?

Only if you can guarantee it'll pay out, won't cost more than the funeral itself and doesn't have an expiry date. Without these things, it can be a bit of a rort.

What is the average cost of a funeral in Australia?

It depends on how big it is but typically, funerals in Australia cost anywhere between $4,000-$15,000.

Cheap Funeral Insurance Australia

Compare funeral insurance

3 of 6 results

Maximum cover	Maximum entry age	Minimum sum insured	Terminal illness cover	Expiry age
Apia Funeral Insurance	$15,000	80	$3,000	$3,366 million	No expiry age as long as premiums are paid	Purchase a new Apia Funeral Insurance policy and save $100 on your first year. T&Cs apply.	Get quote More info Compare product selectionCompare	loading
Real Funeral Cover	$15,000	79	$3,000	$1,926 million	100th birthday	Get 10% cash back on the premiums you've paid after your first 12-months with The Real Reward™. T&Cs apply.	Get quote More info Compare product selectionCompare	loading
Seniors Funeral Insurance	$15,000	79	$3,000	$1,926 million	100th birthday	Get up to $15,000 in funeral cover, including an extra 25% bonus cover when you turn 85.	Get quote More info Compare product selectionCompare	loading

Showing 3 of 3 results

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.

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

3 of 3 results

Name
Save $100 on your first year Purchase a new Apia Funeral Insurance policy and save $100 on your first year. T&Cs apply. Get deal Get deal		loading Fetching your data...
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. Get deal Get deal		loading Fetching your data...
Get 12 months funeral insurance for the price of 11 When you take out a new Apia Funeral policy. T&Cs apply. Get deal Get deal		loading Fetching your data...

Showing 3 of 3 results

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.

Graph
Data

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

"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."

Peta Taylor

Publisher of Insurance

FAQs

Sources

Thank you for your feedback!

To make sure you get accurate and helpful information, this guide has been edited by Joelle Grubb as part of our fact-checking process.

Written by

Peta Taylor

Publisher of Insurance

Peta Taylor is a publisher at Finder, working across all of insurance. She's been analysing product disclosure statements and publishing articles for over 2 years. Peta is passionate about demystifying complex insurance products to help users make well educated decisions with confidence. Peta is part of Finder's insurance awards team and works alongside editorial and insights experts to bring users the best insurance products every year. See full bio

Co-written by

Gary Ross Hunter

Journalist

Gary Ross Hunter has over 6 years of expertise writing about insurance, including life, health, home, and car insurance. Having reviewed hundreds of product disclosure statements and published over 800 articles, he loves simplifying complex insurance topics for everyday readers. Gary has contributed to major outlets like Yahoo Finance, The Sydney Morning Herald, and news.com.au, and holds a Bachelor of Arts (Honours) in English Literature from the University of Glasgow, along with a Tier 2 General Advice certification, ensuring his work adheres to ASIC’s RG146 standards. See full bio

Gary Ross's expertise

Gary Ross has written 588 Finder guides across topics including:

Health, home, life, car, pet and travel insurance
Managing the cost of living

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Cheap funeral insurance