- With all types of funeral insurance, you need to make sure you're not likely to pay more in premiums over time than the funeral itself would cost you.
Key takeaways
- We found $3,000 funeral insurance policies from $3.10 per week.
- When looking for a cheap funeral insurance policy, make sure your premiums do not go up over time.
- We have also put together a list of partner funeral insurers who offer discounts.
Funeral insurance discounts to help you save
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 03/03/2025. 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 |
Compare funeral insurance quotes with these direct brands
Why compare life insurance with Finder?
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You pay the same price as buying directly from the life insurer.
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We're not owned by an insurer (unlike other comparison sites).
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We've done 100+ hours of policy research to help you understand what you're comparing.
Tips to find a cheap funeral insurance policy
- 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.
Should I just look for the cheapest policy?
No. You should never use price as your sole selection criteria when you’re comparing policies for the following reasons:
Lower cost policies may not include the benefits you need
Just because a policy is cheap doesn’t mean it contains all the benefits you need such as continuation of cover, global coverage, guaranteed renewability and refund of premiums if you die within the first year.
Cheaper premiums can become expensive
A cheap premium won't always stay cheap. Cheaper premiums are usually stepped, which means it will rise as you age and what seems like a bargain now could turn out to be unaffordable in a few years time. Remember if you don’t keep up your payments or cancel your policy, all the money you have paid towards your funeral insurance policy is forfeited.
Consider long term affordability
Rather than just price, it's a good idea to consider long-term affordability. Look for a policy that offers fixed premium payments so you can factor them into your budget over the long term.
Fixed premiums are commonly known as levelled premiums, where your premiums remain fixed for the life of the policy. This is opposed to a stepped premium plan, where premiums increase with age.
Time holding the policy | Stepped premium | Level premium |
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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.
"The average funeral in Australia starts at about $12,000. So make sure you keep track of how much you're spending over the course of the policy - you don't want to take it out too early and end up overpaying over the lifetime of the policy! "
Are there any cheaper alternatives to funeral insurance?
If you don’t want funeral insurance, there are other options available. These include:
- Pre-paying your funeral in a lump sum or making regular payments to a funeral company.
- Depositing the money in a high-interest savings account.
- Investing in funeral bonds with a friendly society or insurance company so the investment gains keep pace with inflation.
- Taking out life insurance, either as a standalone policy or through your super, which normally has a funeral benefit included.
Frequently asked questions
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