In Australia, funeral insurance, also known as funeral cover, is a type of personal insurance designed to pay a lump sum benefit to your loved ones to cover your final expenses when you pass away.
This type of cover is readily available in Australia, often without the need for a medical examination. Due to this lack of general and medical questioning at application time, premiums are generally higher compared to life insurance policies.
Funeral insurance may be beneficial for:
- People with numerous medical conditions and
- Seniors who have been unsuccessful in applying for life insurance due to entry age restrictions.
If you do not fall into either of these categories then life insurance may be a better option. Many life insurance policies in Australia offer a funeral advancement benefit to help pay for your funeral expenses.
This guide sets out everything you need to know when considering a funeral plan.
If you do decide to purchase funeral insurance then your next step is to determine how much cover you need. Funeral insurance benefits are usually around the $15,000 mark or lower, and since funeral insurance premiums are higher it would be prudent to make sure you are not over-insured.
How much funeral cover you need to purchase depends on your funeral plan. This really means how you would like your funeral to proceed. Would you like an extravagant funeral or a simple one? Obviously the more extras you add to your funeral, the greater the funeral cost and the amount insured.
You may want to put together a detailed funeral plan to determine how much a funeral of your choice may cost. You should at least look at the price of caskets, burial plots, or cremation services.
Do not be afraid to contact a funeral home to discuss the cost of their services and obtain a quote to help you further compare funeral insurance quotes. If you are ever in doubt speak to your financial adviser to discuss your funeral insurance needs.
If your application for life insurance is accepted, it is usually a better option compared to funeral insurance. Life insurance coverage tends to offer better protection by offering a higher benefit payment, and usually some form of funeral advancement benefit. The higher benefit payment can better protect your family in financial terms while they cope with their grief.
Funeral insurance premiums tend to be higher than life insurance premiums, and benefit payments are usually at a maximum of $15,000 in Australia.
If you are in a position where you cannot get life insurance coverage, then other funeral plans you might want to consider include:
- Funeral insurance
- Funeral bonds
- Pre-paid funerals
- Your super fund
- Personal savings
If you’re over 50, 60 or 70 you need to start planning for how your loved ones will pay for your final expenses.
Our pensioners guide to funeral cover will help you determine which plan best suits you at your current age and what options are available.
Review the top 10 variables you need to consider before making a decision and whether you can get funeral cover when over the age of 80.
The best funeral policy and insurer in Australia depends on your unique requirements, specifically the type of funeral you want and your age.
To help you find the best funeral cover, we’ve compiled a list of funeral insurance companies in Australia, with a checklist of what the best funeral insurance policies generally have in common and what you should avoid.
Find your funeral cover fit by following our 5 steps to cheap burial insurance quotes.