Seniors Funeral Insurance

Find affordable funeral insurance for seniors

If you’re over 50, 60, or 70 years old and considering how to pay for your funeral expenses, then it might be worth looking at affordable burial insurance for seniors.

Seniors funeral insurance is a type of funeral cover that is designed specifically for Australian residents over the age of 50. With a variety of options to compare, requesting a quote online can be an affordable way to choose your plan and give your loved ones the finances to pay for your final expenses when you pass away.

It can be confusing to get the cover that you need while making sure that you don’t compromise your budget, especially if you’re a pensioner on a fixed income. This article will help you:

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Funeral insurance for pensioners; what you need to consider

As an Australians senior citizen looking to cover the cost of your final expenses, you need a funeral plan that gives you maximum value for money, while remaining affordable, especially when on a fixed income. To protect yourself and your loved ones, consider the following when comparing funeral insurance for pensioners:

  1. Entry age restrictions: Funeral insurance for senior citizens generally allows for a maximum entry of up to 70, depending on the insurer. If you’re nearing 80 years then you still have options and can explore alternative funeral plans. For example, funeral bonds or pre-paid funerals.  
  2. Guaranteed acceptance: With funeral insurance, you won’t have to undergo a medical exam because, generally, there’s no medical underwriting involved.
  3. The cost of your funeral: A funeral in Australia can cost you anywhere from $3,000 to $50,000. However, the exact cost depends on the type of funeral you want. Ensure you’ve determined what your funeral will cost before determining the cover amount you need.
  4. Premium affordability: Funeral insurance premiums generally depend on the insurer, the cover amount you choose and some personal factors, like your gender and age. For example, a 67-year-old non-smoking male, purchasing $5, 000 worth of funeral cover could pay $52.33 per month.
  5. Premium type: Stepped premiums might start cheaper, but increases every year. Level premiums start off more expensive but do not increase every year due to your age.
  6. Capped vs non-capped premiums: Capped premiums ensures you’ll never pay more in premiums than what your cover is worth, whereas with non-capped premiums you could end up paying more in premiums than what your funeral might cost.
  7. Payment options: Many funeral insurance companies will provide you with a discount of 5%-8% off your premiums when you pay annually of fortnightly.
  8. Built-in benefits: Some funeral plans come with built-in features, for example, some insurers offer 24/7 cover no matter where in the world you are, other provide grace periods when you’re going through financial difficulties.
  9. Cover indexation: Have a look at whether your selected funeral plan will keep up with inflation and if you can decide to remove these increases when you don’t want your cover and premiums to increase.
  10. Discounts: Review whether the funeral policy offers a discount when your spouse also takes out a policy with them.

What to avoid when looking for funeral insurance for seniors

Another important part of the finding cheap burial insurance for seniors is to know what you should avoid:

  • Stepped Premiums: This premium type starts out as more affordable but increases every year as you age. That’s why it’s crucial to think about what you could be paying in just a few years’ time and if you can afford these increased payments in the long-run.
  • Cancelling early: At a certain point, you might find that your premiums are too expensive, especially when you’re on a pensioner’s budget. But it’s important to remember if you cancel now you’ll lose all the premiums you paid thus far. Rather reduce your cover amount and thus your premiums or request that your cover indexation is
  • Long accidental death periods: Generally, funeral policies will only cover accidental death during the first 12 months of your policy commencing, but some insurers might extend this period to two years. It’s important to check these details in the product disclosure statement (PDS) of your policy.

What is funeral cover for parents?

Funeral cover for parents might be a valid option if you’re living on a fixed income. Your children would then take out a funeral insurance policy on your behalf. However, when they purchase senior funeral insurance for you the policy must be in your name, they will simply be accountable for paying the premiums.

Consider talking to a financial advisor or legal professional to make arrangements in your Will to ensure that the benefit payout is made available to the correct people, who will be responsible for covering your funeral expenses.

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Funeral cover for seniors can be an effective solution to ease the financial burden from your loved ones during an already difficult time.

Funeral cover for over 50 year olds

Australians over the age of 50 can get affordable funeral cover without any medical questions or health checks because acceptance is guaranteed. However, different insurers will have different max entry ages, meaning one company might accept people up to age 75, while another will limit eligibility to age 65.

Where to find funeral cover for over 80 year olds?

Funeral cover for people over 80 years old is generally not available in Australia. This is because your specific age group poses an imminent risk of claiming the funeral benefit. There are, however, other affordable ways you can cover the cost of your funeral, including funeral bonds and prepaid funerals.

  • Funeral bonds: Also known as a funeral investment, is an investment product usually bought from a funeral director or life insurer and earns interest, enabling you to accumulate funds to meet your final expenses.
  • Prepaid funerals: You can arrange to pay for your funeral in advance by prepaying for your funeral via regular instalments to your funeral director.
  • The government: As a pensioner or veteran, you could be eligible for financial assistance through the Australian government to help cover your funeral expenses.
  • Personal savings: You can choose to open a savings account for the specific purpose of saving for your funeral. Speak with your financial advisor to suggest a lump sum term deposit or set-up a regular payment plan.

Explore your options for affordable burial insurance for seniors today by comparing policies online.

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Popular questions about funeral cover for senior citizens

Typically, there are entry age restrictions when applying for funeral cover. Generally, the maximum entry age goes up to 70, although this depends on the insurance company. For those seniors finding it difficult to get funeral insurance,  you might want to investigate alternative options, like funeral bonds or pre-paid funerals.

A payout guarantee is a funeral benefit offered by select insurance companies. It stipulates that the lump sum paid to your beneficiary will be whatever is greater between your total premiums paid and your insured amount. This simply means that the bigger amount will be paid out.

Published: November 8, 2017

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