Your funeral cover checklist
Funeral cover provides a lump sum payout to your beneficiaries after a valid death certificate has been issued. This lump sum helps your loved ones pay for funeral-related expenses, like your burial or cremation and memorial service. You can generally choose the level of cover you want, starting from as low as $5,000 all the way up to $15,000.
One way to do this is to explore the variety of funeral insurance plans available and choose the one which will best help your loved ones cope with the expenses of your passing.
Use this guide to help you find the right final expense insurance policy:
How much does a funeral cost?
Generally, the average cost of a funeral in Australia can range anywhere from $3,000 to $50,000. This amount differs depending on various expenses, including:
- Death certificate and/or certificate from the medical practitioner;
- Transfer costs to the mortuary;
- Funeral director’s fees;
- Whether you choose to be buried or cremated;
- The coffin or urn;
- Burial notices;
- Transport vehicles, for example, a limousine for your family;
- Flowers and catering.
While it’s not nice to think about your death, the consequence of not doing so might leave your loved ones with the burden of having to plan and pay for your final expenses, which could leave them in debt.
Estimated funeral-related costs:
- Coffin or casket: $800 to $10,000
- Cremation without a funeral service: $950 to $2,600
- A single grave: $2,970 to $4,800
- Labour cost for opening and closing the grave: $1,485
- A simple memorial plaque: $1,500 to $3,500
How to choose the best funeral insurance plan
There are a few steps you need to consider when it comes to arranging the details of your funeral. While some of these might not be relevant to your specific requirements, they will give you a good starting point to help you make the decision that’s right for you.
Life insurance vs funeral insurance
Which is best: a funeral plan or life insurance?
Whether funeral plans or life insurance is best depends on your personal circumstances. For instance, if you have health problems and been declined for life cover in the past, then a funeral insurance plan might be a better option because of guaranteed acceptance. However, if you want a policy that will protect your family should you die, then life cover might be better.
No one wants to think about their death, it’s an inevitable part of life. Take the first step in the planning process by comparing funeral policies from a variety of insurance companies and find the best cover at the most affordable price.