Best Funeral Insurance

The best funeral insurance can go beyond just covering burial or cremation expenses. Some policies provide extra advantages, potentially increasing their value, including: 

• Accidental death cover: Some insurers double or triple the payout if you pass away accidentally. This may be included on the policy, or offered as an extra option.
• Terminal illness cover: Some policies pay out if you're diagnosed with a terminal illness. This money can be used for funeral planning or other needs.
• Accidental injury benefit: Some policies offer a lump sum for serious injuries under a specific age, like paralysis or loss of limbs.
• Child cover: Certain policies also provide benefits if your child is severely injured or passes away, although usually this is an optional extra.

However, the additional benefits available differ between the insurance companies who offer funeral insurance in Australia, so it's well worth comparing policies so you get an idea of what's available.

Some of the alternatives to buying standalone funeral insurance include: 

• A life insurance policy that includes funeral cover 
• A pre-paid funeral plan with a specific funeral director 
• Using your existing savings – some people have a savings account specifically set up for this purpose
• Superannuation – your family may be able to pay for your funeral using funds from your superannuation, but they may have to pay funeral costs upfront first before receiving your superannuation money down the track

Funeral insurance can help your family financially, but there are things to be careful about. Two main problems are: 

• Paying too much: Most funerals cost less than $10,000. If you've had funeral insurance for a long time, you might pay more in premiums than the funeral's actual cost. It's important to calculate the cost of a funeral compared to the amount spent on funeral insurance over the years to decide if it offers good value for money
• Rising premiums: If you choose funeral insurance with stepped payments, it could get expensive as you get older

During the first 12 months of holding a funeral policy, you may only be covered for accidental death. However, after this exclusion period is over, the policy will usually pay out for any cause of death, with the exception of death by suicide.