Get the Finder app 🥳

Connect your accounts & save

Funeral Insurance Companies

Unsure of who to buy your funeral insurance from? Find out what you should look for when comparing providers


Fact checked

We all want to be able to provide for our loved ones, even if we’re no longer around, but many Australians are unaware of the fact that funerals can cost up to $15,000. Funeral insurance can help your family in the face of significant financial costs when you pass away.

Funeral insurance however, is an investment that needs careful consideration as there can be traps that you're unaware of. Make sure you select an insurance product from a reliable funeral insurance provider to get the most out of your money.

Compare your funeral insurance options

What should I consider when choosing a funeral insurance company?

  • Reputation. Consider whether the company has a reputation for delivering what it promises. It's a good idea to look at how long the company has been around and whether or not it has good reviews.
  • Policy. Look carefully at the funeral insurance policy a company offers and consider who underwrites the cover, what the waiting period is and what are the exclusions. It's also a good idea to check if these key features are included.
  • Claims process. Check the company’s product disclosure statement (PDS) or website to find out what will be required of you in the event of a claim. Here you can find out how long will it take for your claims to be processed as well as the type of customer service it offers.

What policy features does a reliable funeral insurance company offer?

A reliable funeral insurance provider will offer policies that have:

  • Lump-sum payment of your choosing. Funeral insurance companies provide a lump-sum payment to your beneficiaries when you die.
  • Fast payment of the benefit. This payment is usually received within 24 hours, giving your family the financial capacity they need to give you the farewell you want.
  • Flexible payment options. A good policy will give you the option of stepped and levelled premiums.
  • Value guarantees. Value guarantees ensure you never pay more in premiums than your sum insured. A common type of value guarantee is a premium cap, where your premiums are ceased when they reach the sum you originally insured.

Funeral insurance traps to watch out for

Make sure you look out for these traps when choosing funeral insurance:

  • Paying too much. Perhaps the most common funeral insurance trap is choosing a policy that doesn’t put a cap on the total premiums you pay. The end result of this is that you could end up paying enough in premiums to cover the cost of your funeral several times over. Read the fine print to make sure you won’t end up significantly out of pocket.
  • Increasing premiums. Many funeral insurance policies offer premiums that increase every year as you age. But keeping up with these rising premiums may not be possible if you’re on a fixed income, so you may need a policy with level premiums.
  • Stopping premium payments. If you can’t keep up with premium payments and you stop making payments, your funeral insurance policy will most likely be cancelled. Some insurers won’t even give you back the premiums you have paid towards your cover, so check the fine print to make sure you’re aware of what will happen if you stop paying premiums.

Who regulates funeral insurance companies?

There are two regulatory bodies to consider when it comes to funeral insurance:

  • Australian Securities and Investment Commission (ASIC). An independent government body, ASIC regulates companies, financial products and services to ensure that consumers, creditors and investors get a fair deal.
  • Australian Prudential Regulation Authority (APRA). Meanwhile, APRA oversees and regulates the prudential practices of banks, credit unions, super funds and life insurance companies. APRA aims to ensure that life insurance companies deal openly and honestly with consumers and that the insurance is offered fairly.

Did you hear about the recent changes to funeral insurance products?

Back in 2013, CHOICE and a selection of Australian consumer advocacy groups launched a campaign to call for reforms to funeral insurance. The main reason for this was to address the unfair policy features and traps that many consumers faced.

As a result of this backlash, many providers now offer policies with features that guarantee better value for money for consumers. These features include:

  • Level premiums. These premiums will never increase, allowing you to budget for their repayment now and into the future.
  • Reduced premiums. Some policies will actually lower the cost of your premiums each year after you’ve held cover for a minimum period.
  • Premium caps. Many policies now impose a cap on the total cost of your premiums, which means the premiums you pay will never exceed the sum insured.

Compare funeral insurance currently offered by Australian providers

Name Product Maximum Cover Maximum Entry Age Minimum Sum Insured Premium wont increase with your age Expiry Age
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.
Australian Seniors Funeral Insurance Top Cover
No expiry age as long as premiums are paid
Get up to $15,000 in funeral cover with Australian Seniors Funeral Insurance.
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.
Medibank Funeral Insurance
No expiry age as long as premiums are paid
You could win a $2000 Gift card when you get a Funeral Insurance quote by 30 August. Winner drawn fortnightly. Plus, Medibank health members save 10% every year. T&Cs apply.

Compare up to 4 providers

Ask an Expert

You are about to post a question on

  • Do not enter personal information (eg. surname, phone number, bank details) as your question will be made public
  • is a financial comparison and information service, not a bank or product provider
  • We cannot provide you with personal advice or recommendations
  • Your answer might already be waiting – check previous questions below to see if yours has already been asked

Finder only provides general advice and factual information, so consider your own circumstances, or seek advice before you decide to act on our content. By submitting a question, you're accepting our Terms of Use, Disclaimer & Privacy Policy and Privacy & Cookies Policy.

2 Responses

  1. Default Gravatar
    DarrenSeptember 24, 2019

    What is guaranteed future insurability?

    • Avatarfinder Customer Care
      JeniSeptember 26, 2019Staff

      Hi Darren,

      Thank you for getting in touch with Finder.

      A Guaranteed Future Insurability is an optional choice within a life insurance policy – not with the funeral insurance, that allows you to increase or renew the level of cover you have in place if a defined life event occurs e.g. getting married.

      I hope this helps.

      Thank you and have a wonderful day!


Ask a question
Go to site