Freedom Insurance Final Expenses Cover Review
Final expenses insurance cover is life insurance designed to help you navigate the financial responsibilities that follow the death of a loved one and is provided to you as a lump sum to be used for any purposes as you see fit.
Final Expenses Cover offered by Freedom Insurance provides a lump sum benefit of up to $15,000 in the event of death. This cover also offers you the flexibility of choosing between stepped or level premiums and adding an optional cash back feature where you have chosen stepped premiums and a paid-up insurance feature where you have chosen level premiums.
Final Expenses Cover has been designed to provide simple, affordable, easy-to-obtain protection suitable to a wide range of applicants. This review will discuss the benefits of this policy.
What are the Benefits of the Freedom Final Expenses Cover?
Freedom Final Expenses Cover offers a range of benefits including
- Lump sum benefit: A lump sum benefit of up to $15,000 is payable in the event of the life insured’s death
- Double Overseas Benefit: A double benefit is payable if death occurs whilst travelling overseas, provided it is within the first 3 months of the insured person leaving Australia
- Choice of Stepped or Level Premiums:
- Level premiums are based on the insured person’s gender and age at policy commencement and won’t increase with age. If you choose the level premium option, you will also be able to add the Paid Up Value feature when you take out your cover.
- Stepped premiums are based on the gender and age of each person insured under your policy, at each anniversary date. If you choose the stepped premium option, you will also be able to add the Cash Back feature when you take out your cover.
- Paid Up Value Option: When you have held your Final Expenses Cover for 10 years or more, you may convert your cover to a paid up insurance meaning no further premiums will have to be paid after the day you convert. This option can only be added at the time you take out the cover and is only available if you choose the level premium option for your Final Expenses Cover.
- Cashback Option: Where the life insured is aged 75 or more and you have you’re your cover for at least 5 years, you will be eligible to receive a cashback payment equal to 5% of the sum insured for each and every year that the Final Expenses Cover has been in place. This option can only be added at the time you take out the cover and is only available if you choose the stepped premium option for your Final Expenses Cover.
- Premium Payments Cease: There is no expiry age for Final Expenses Cover and premiums will cease at age 90.
Freedom Insurance Final Expenses Exclusions
As with any insurance product, there are some exclusions that apply to Final Expenses Cover. A death benefit will not be payable if:
- The accident that resulted in the death occurred before the commencement date; or
- The death occurred within the first 12 months of your cover and was not the result of an accident; or
- The death occurred within the first 12 months following your request to increase the payment benefit of your Final Expenses Cover and was not the result of an accident (benefit not payable for the amount of the increase)
- 12 month premium waiver is only available once per life insured and may be withdrawn for new business at any time.
Finder.com.au recommends that you read the Product Disclosure Statement (PDS) in full to understand all the exclusions and that you speak to a representative regarding any questions you may have before purchasing Freedom Final Expenses Cover.
Who is Eligible for Freedom Final Expenses Cover?
In order to be eligible to apply for Freedom Final Expenses Cover you must be;
- An Australian Resident
- Aged between 17-80 years at the policy commencement date