Seniors funeral insurance

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.

More about seniors funeral insurance

Features of seniors funeral insurance

Some of the key benefits of seniors funeral insurance can include:

• Easy to apply. You can get a quote and take out a policy quickly and easily over the phone or online.
• Guaranteed acceptance. Some policies will guarantee acceptance for people even up to 80 years of age.
• No medical examinations. Funeral insurance generally won't require you to submit a medical history or undergo a medical assessment for pre-existing conditions. However, there are exceptions, which can be found below.
• Fast payout when you die. Your benefit is generally paid out to your dependents within 2 business days of your death.
• Lump sum payment. A cash payment is issued to your beneficiary to cover your final expenses. Many policies we compare let you choose a benefit amount from $5,000 to $15,000 in intervals of $1,000.
• Accidental death cover. You will receive payment of the full benefit if you die due to an accident in the first year of holding your policy.
• Terminal illness. If you are diagnosed with a terminal illness after the first year of holding your policy you will get a payout.
• Never pay more in premiums than your sum insured. You may want to look for policies offering a "value guarantee", where the amount you pay in premiums doesn't exceed how much you're insured for.

How much does a funeral actually cost?

There can be a range of expenses for a funeral. These costs vary depending on how big it is and how elaborate you want it to be. Main costs include:

• A cemetery plot, coffin, gravestone, hearse and funeral director, if you plan to be buried (estimated cost range: $4,000-$15,000).
• A service, celebrant, urn and flowers if you plan to be cremated (estimated cost range: $2,000-$8,000).
• Venue hire and catering, if there is to be a wake (estimated cost: $1,000).
• Newspaper notices, obituaries and a death certificate (costs vary).
• The added costs of cultural and religious requirements (costs vary).

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.

How much is seniors funeral insurance?

​​If the idea of your loved ones having to fork out between $4,000 and $15,000 at the time of your passing sounds dreary, then funeral insurance could be an ideal solution.

• The cost of a cheap funeral insurance policy can be as low as $3 per week.
• Seniors funeral insurance in Australia is usually higher and can cost from $16 per week for a 60-year-old looking for $8,000 worth of cover up to $29 for a 70-year-old.
• Factors that influence the cost of funeral insurance include your age when you take out the policy, the type of premium you choose and whether you smoke or not.

Are there any must-have policy features for seniors?

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?
Premium choice	Policies will sometimes offer you a choice of level or stepped premiums. A level premium doesn't rise as you get older which can be useful as your income increases with age.
Capped premiums	Cover becomes free once your premiums paid match your insured amount or when you reach 90 years of age.
Payout guarantees	This ensures you are paid out the greater between your total premiums paid and your sum insured.
Grace periods	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?
Global coverage	Your policy covers you 24/7 anywhere in the world.
Free will kits	Some policies will also provide you with a free will kit to help with your estate planning.

What is the maximum age for funeral insurance eligibility?

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
Apia Funeral Insurance	Between 45 and 80
Real Funeral Expenses Cover	Between 40 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:

• Require you to take a medical examination.
• Not provide cover.

Are funeral plans safe?

Yes, funeral plans are safe but that doesn't mean that each policy doesn't come with its own unique pros and cons. One of the biggest risks with any funeral insurance policy is not fully understanding what benefits you're up for and how your premiums work.

• Premiums aren't usually locked-in, meaning they can increase over time.
• You may end up paying more in premiums than the benefit your family will receive.
• If you can't keep up with the premium payments in the future and you cancel your policy, you won't be able to get a refund on any premiums paid.
• Look out for: Policies with a "value guarantee" or "payout guarantee"; grace periods for when you can't pay; and capped premiums.
• Consider other options. A prepaid plan, funeral bonds and life insurance are other ways to pay for your funeral and avoid the risks of overpaying.

If you buy a funeral insurance policy but change your mind after having more time to think about it, all is not lost.

Under Australian Consumer Law, you are entitled to a 10-day cooling-off period from the day you purchase your policy. During this timeframe, you can cancel your policy and get a full refund provided that you have not made a claim.

Funeral insurance traps and how to beat them

The trap	How to avoid it
Paying more in premiums than the cost of your funeral.	Look for a policy that offers premium caps.
Not being able to make payments and forfeiting the money you have paid.	Look for a policy with a grace period or a premium pause option.
Not being able to afford your premium when it rises in a few years.	Choose a policy with a level premium, which won't increase with age.
Buying a bad policy from an untrustworhty advert or a cold call.	Attempt to get a refund within the cooling off period.

Need more help choosing funeral insurance? Speak to an expert today

Frequently asked questions on funeral insurance for seniors

• What's the best funeral insurance for over 60s?

  That's up to you to decide based on your circumstances. Each of the insurers compared on Finder offer maximum cover of up to $15,000. When shopping around for the best cover for you, it's a good idea to look at price, policy features and the underwriter.

• Do I need to undergo any medical exams?

  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.

• What about funeral insurance for over 70s?

  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.

• Can I get funeral insurance if I'm over 80?

  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.

• When will my health or age require me to undergo a medical examination?

  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.

• What factors affect the cost of funeral insurance?

  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. Choosing between a level or stepped premium will also affect how much you pay for your cover.

• What other options do I have to fund my funeral?

  Other ways to cover your funeral expenses include:

  • Life insurance. This usually contains a funeral expenses benefit.
  • Superannuation. This also often contains funeral cover, although the payment process is slower than that of standalone funeral insurance.
  • Savings. Either a lump sum term deposit or regular payments into a savings account.
  • Funeral bond. Money invested by an insurance company or friendly society is used to cover your funeral expenses.
  • Prepaid funeral. Either a lump sum or regular payments to a funeral director.
  • Government assistance. If you are a veteran or pensioner, you may be eligible for financial assistance to help cover funeral expenses.

• Am I covered if I have been diagnosed with a terminal illness?

  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.

• What if I become terminally ill during or before the waiting period?

  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.

• Should I get an over-50s life insurance policy or a funeral plan?

  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.

• What can I do if I'm not satisfied with the policy I've purchased?

  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.

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