What you need to know
- Policies usually pay out with a benefit ranging from $5,000 to $15,000.
- Most policies won't require you to undergo any medical examinations.
- Applications can be done over the phone or online with the minimum of fuss.
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A funeral insurance policy can help cover your existing expenses when you die and relieve your family of an unnecessary financial burden during an already difficult time.
Some of the key benefits of funeral insurance for seniors can include:
There can be a a range of expenses associated with a funeral, depending on how big it is and how elaborate you want it to be, some of which include:
When considering funeral insurance, you might need a cover amount of at least $4,000 for a basic service. We compare funeral plans with cover limits up to $15,000.
Keep an eye out for these policy features being offered when you are comparing funeral insurance. While some are beneficial no matter what your age others are of particular use if you are a senior.
Key features for seniors | How does this help me? |
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| Policies will sometimes offer you a choice of levelled or stepped premiums. A levelled premium doesn't rise as you get older which can be useful as your income ceases with age. |
| Cover becomes free once your premiums paid match your insured amount or when you reach 90 years of age. |
| This ensures you are paid out the greater between your total premiums paid and your sum insured. |
| If you cannot make premium payments, some policies offer a grace period (usually 3 months) to reinstate your policy. During this period your accidental death cover remains in place. |
Other useful features | How does this help me? |
| Your policy covers you 24/7 anywhere in the world. |
| Some policies will also provide you with a free will kit to help with your estate planning. |
Age restrictions usually apply when it comes to funeral insurance. The normal age range for eligibility is 45 to 70, but the maximum age varies between insurers and plans do exist that cater for older seniors, although medical assessment may be required.
Here are the age requirements for 3 funeral insurance brands:
Provider | Age requirements |
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Apia Funeral Insurance | Between 45 and 80 |
Real Funeral Expenses Cover | Between 18 and 79 |
Suncorp Funeral Insurance | Between 45 and 80 |
The age of 80 or above is typically when you may have trouble taking out a policy. Most insurers will either:
The trap | How to avoid it |
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An adviser can help you find cover from trusted life insurance brands.
There's no one "best" policy, as everyone's circumstances and needs will be different. Each of the insurers in the table above offer premiums that won't increase with age and maximum cover of $15,000. Any of these could be a great starting point in your search.
Insuranceline and Apia both have a maximum entry age of 80 and are among the brands that could be worth a closer look.
Or, you can see more options and read about taking out life insurance after 70 in our comprehensive guide.
Unfortunately, most insurers set a maximum entry age of 79 or 80 for new funeral policies. That's the case for 8 brands we reviewed on Finder. You may wish to speak with a financial adviser to see what life cover options may be available to you. One option you may have is a pre-paid funeral plan.
Most providers who sell bad or dodgy policies rely on people not fully understanding what is being sold to them. So, it's important to fully understand the features that will be included in a good policy. If you want extra peace of mind, consult with an experienced and reputable adviser if you have any doubt about a policy.
In this situation, it's best not to panic. You may still be able to get your money back. Under Australian Consumer Law, you are entitled to a 10-day cooling-off period if you buy a policy from a salesperson. If you are still within this period you can ask for a refund. Most funeral insurance policies will state a 30-day cooling-off period.There is usually no medical underwriting involved with funeral insurance. However the exception is after a certain age (depending on the insurer), when a medical examination will be required before cover is offered. The only health question normally asked is whether you are a smoker. If you smoke, you will pay a higher premium.
As a general rule of thumb, if you are over 70 then you will either have to submit your medical history or take a medical questionnaire. Make sure you check your policy's product disclosure statement or contact your insurer directly so you know what its rules are regarding this. Additionally, if you are a smoker then you may incur a premium loading, which means your policy will cost more.
The cost of funeral insurance can vary quite a bit depending on a range of factors such as your age, lifestyle and where you live. Also, choosing between a level or stepped premium will also affect how much you pay for your cover.
Other ways to cover your funeral expenses include:
Funeral insurance will pay you out for a terminal illness after the policy's waiting period. This is usually a 12-month period, depending on the policy.
During the first 12 months of your policy, most insurers will only pay a benefit if you die as the result of an accident. If you are diagnosed with a terminal illness during that 12-month period, most policies will offer a refund on your premium payments.
Both have their merits. An over-50s life insurance policy pays out a lump sum when you die, and this can be put towards funeral costs along with other future expenses for your family. However, if you take out an over-50s policy in your early 60s and don't die for another 20 years or so, you could end up paying quite a bit more than you'd get when you die.
Funeral plans can be more straightforward products with faster payout times (typically, within a couple of days of a claim). You could also consider no-frills options like prepaid funeral plans, which are growing in popularity.
If you find yourself being rushed into taking out a funeral policy that, upon reflection, isn't what you wanted, you can still get your money back if you are within the cooling-off period.
Australian Consumer Law entitles you to a minimum 10-day cooling off period if you buy a policy. If you change your mind, you can ask the insurer for a full refund of any premium paid, providing you are within that period. Fortunately, most insurers offer a 30-day cooling off period, so you should have plenty of time to be able to review your policy and cancel it if it doesn't meet your needs.
For more on complaints, you can call the Australian Securities and Investments Commission (ASIC)'s Infoline – 1300 300 630.
James Martin is a senior writer for Insurance at Finder. He has written on a range of finance and business topics for over six years and his work has been featured in publications including The Irish Times, Companies 100, In Business and Q Magazine (UK). As a trained journalist, he can drill into the finer details of financial products to help you save time and money. James is a committed sports fan, novel reader and he holds a Tier 1 General Insurance (General Advice) certification.
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i have moved to new address and lost paperwork an cannot remember who i have my funeral policy with, can you help me
Hi Joy,
Thank you for your question.
Please note finder.com.au is a comparison and information service and not actually an insurer.
You might want to review you bank records as it should display your insurers name next to the debit for your premiums.
All the best,
Zubair