Medibank Funeral Insurance

Medibank Funeral Insurance Review

Medibank funeral insurance offers cover of up to $15,000 and you can also take advantage of perks with your Medibank health membership.

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With Medibank, you can take out cover from $3,000 to $15,000 and your premiums will go down by 3% after 5 years of holding policy (and every 5 years after) as long as you hold the policy intact. The lump sum your family gets to meet your funeral costs can help to ease some of the burden during a difficult time for them.

Our Verdict:

  • Medibank offers capped premiums when you turn 90, which can help you get better value from your funeral policy.
  • Figures from Moneysmart show that Medibank's underwriter Swiss Re Life and Health Australia Limited had just 3.9 policy disputes per 100k lives insured. This was almost twice as low as the industry average of 7.1.
  • Four brands we reviewed have an early payout option – Medibank wasn't one of them.

Review by our insurance senior writer James Martin

Get the latest deal from Medibank Funeral Insurance

Deal

10% off premiums for Medibank health members.

Medibank health members save 10% every year. T&Cs apply.

Get a quote for Medibank Funeral Insurance

Name Product Maximum Cover Maximum Entry Age Minimum Sum Insured Premium wont increase with your age Expiry Age
Medibank Funeral Insurance
$15,000
79
$3,000
No expiry age as long as premiums are paid
Medibank health members save 10% every year. T&Cs apply.
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Find out more about funeral protection cover

Maximum sum insured$15,000
Age of entry18 to 79
How do I apply?Online with Medibank

Information last checked on February 2021. Always consult the Product Disclosure Statement (PDS).

This cover might be suitable if:

  • You want a guarantee of value e.g. what you pay in premiums won't be more than
  • You are unable to get regular life insurance
  • You are after an underwriter with a lower claim dispute rate than the industry
  • You are under 79 years of age

Reconsider your need for cover if:

  • You already have enough savings for a funeral
  • You already have an adequate funeral plan
  • You already have life insurance in place with a funeral benefit

Information last checked on February 2021. Always consult the Product Disclosure Statement (PDS).

Note: The following is based on Swiss Re Life and Health Australia Limited. Swiss Re Life and Health Australia Limited is the actual insurer behind brands like Medibank Funeral insurance and a few others.

Claims dataSwissIndustry Average
Average claim time (months)0.600.60
Disputes per 100k lives1.603.40

We looked at APRA data for claims over 2017-2018. The statistics above reflect 'funeral insurance' claims.

About Medibank

Medibank is one of Australia's most recognisable companies. While health insurance is where it made its name, Medibank has also been offering life, income protection and funeral insurance since 2007.

The company insures 3.7 million Australians across its entire product range and puts the health of all Aussies at the forefront of what it does. Its vision is "Better Health Better Lives" and it successfully supports Aussies in prevention, treatment and health management.

Medibank also has a strong history of sustainable corporate responsibility, supporting causes like Indigenous health equality, the fight against childhood obesity and the creation of a more environmentally-sustainable future.

World-leading insurance group Swiss Re Life & Health Australia Limited underwrites all of Medibank's life insurance and funeral cover products.

What are the highlights of Medibank's funeral insurance policy?

Medibank's funeral insurance will cover the cost of your funeral when you die, and it also includes a number of unique features that sets it apart from similar policies.

Some of the noteworthy features are:

  • Death and accidental injury benefits. Your funeral insurance will pay you a lump sum equal to 3 x Sum Insured benefit payout if you die or if you suffer an accidental serious injury such as permanent blindness or paralysis. While many life insurers will sell this to you separately, Medibank includes it.
  • Terminal illness benefits. Medibank Funeral Insurance will pay you your benefit amount if you are diagnosed with a terminal illness at least 12 months months after purchasing the policy or when a terminal illness diagnosis that was given in the first 12 months months of the policy, has been reconfirmed.
  • Financial hardship assistance. Keeping your policy current is important with life insurance products like funeral insurance. If you are having trouble keeping up with your payments, Medibank may agree to short-term assistance if you can show them proof of hardship.

Cover is provided for accidental death only in the first 12 months and then death due to any cause and diagnosis of a terminal illness thereafter.

How does Medibank Funeral Insurance provide value?

In addition to the benefits mentioned above, Medibank promises that you'll get real value out of your funeral insurance policy with the following guarantees:

  • Your funeral premiums will never increase. As long as you don't change or cancel your cover, your premiums will never go up.
  • In fact, your premiums will actually decrease. As long as your policy remains inforce without any changes being made to the cover, your premiums will actually lessen by 3% every five years.
  • Your payout will be worth at least what you paid into the policy. If your policy is still in force when you die or are diagnosed with a terminal illness, Medibank will pay either your benefit amount or the total amount equal to every premium you've ever paid, whichever amount is higher.
  • Your premiums are waived after age 90. If you make it to 90, you can remain covered without having to pay another cent in premiums!

Are there any loyalty discounts available?

Yes. Medibank will give you a 10% discount on your funeral insurance premiums if you also have private health insurance with them. Given that they are one of the largest health insurers in Australia, this makes it easy to bundle your policies.

When will a benefit be paid?

If your policy is current, Medibank will pay you the appropriate funeral benefit amount if you die, suffer a serious accidental injury or are diagnosed with a terminal illness.

However, within the first 12 months of buying the policy or reinstating a lapsed one, you will be covered for death or injury-related to accidents only. That means you won't be covered for things like suicide or a newly-diagnosed terminal illnesses. However, after those 12 months months have passed, you will be covered for those situations including the re-confirmation of terminal illness diagnosis.

The accidental serious injury benefit also includes a number of exclusions. You will not be eligible for the accidental serious injury benefit if the injury happens due to the following:

  • Self-harm or suicide
  • Criminal activity
  • Alcohol or drugs
  • Professional sports
  • Motorsports
  • War
  • Piloting or being a crew member on an aircraft

You'll also not be eligible to claim for a funeral or accidental death if you've already received an accidental injury payout for the same accident.

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