Cheap Funeral Insurance
Wondering how to find cheap funeral insurance? Find out all you need to know about funeral insurance here with Savvy.
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Are you searching for an affordable way to ensure your loved ones are financially supported if you pass away? Cheap funeral insurance may be the solution you're seeking. This type of insurance offers peace of mind by providing a lump-sum payment to cover funeral expenses, helping alleviate the financial burden on your family.
Here at Savvy, we don't offer comparisons between different standalone funeral insurance policies. However, we can help you compare life insurance policies that also cover the cost of a funeral. If you are after cheap funeral cover a life insurance policy could potentially offer better long-term value. Our 100% free service lets you compare life insurance policies side by side, helping you choose one that suits your needs. Start comparing life insurance options with us today!
How can I find the cheapest funeral insurance?
There is not a great deal of competition in Australia between insurance companies offering funeral insurance. This may be because younger people find that a life insurance policy offers better value for money overall.
However, for older Australians, particularly those aged over 60 who may not be eligible for life insurance, or who can’t afford life insurance premiums, then standalone funeral insurance may be an affordable option.
Here are some ways that you can keep your funeral insurance costs low and get the cheapest funeral insurance possible:
- Think about the type of funeral you’d like in advance: in general terms, cremations are cheaper than burials, so if you decide you’d like to be cremated, then you may need less insurance to cover the cost
- Get an estimate: once you’ve worked out the type of service that you’d like, it can be worthwhile contacting a funeral director to get an estimate of how much your chosen funeral will cost
- Decide on the payout benefit amount you require: once you've calculated how much your planned funeral may cost, choose a benefit amount based on your quote. Don't over-insure yourself by choosing a higher payout benefit than you actually need. Tailor the payout benefit to the amount you require to cover the service you have planned
- Take advantage of bundle offers: some insurers offer discounts if you bundle various forms of insurance together, such as total and permanent disability, trauma and income protection with funeral insurance.
- Compare different policies to find the cheapest: although we don’t offer comparisons between funeral insurance policies, we do compare life insurance policies. Using our free comparison service will give you an idea of how much a life insurance policy may cost compared to a funeral insurance policy on its own.
- Price guarantee: choose a policy with a price guarantee. Some insurers offer guarantees or price promises that you will be paid out at least the amount of the premiums that you’ve paid on your policy. Choosing to accept a payout consisting of a lower proportion of your total premiums (for example, 70% or 80% of the premiums you’ve paid) can make your funeral insurance cheaper.
What are the differences between funeral insurance and life insurance with funeral cover?
There are quite a few differences between standalone funeral insurance, and life insurance which includes funeral cover. The main ones are:
Funeral insurance:
- Specific focus: Funeral insurance is designed solely to cover funeral expenses.
- Coverage: It provides a lump-sum payout to nominated beneficiaries upon the policyholder's death.
- Waiting period: Typically includes an initial waiting period (12 months) during which time only accidental death is covered.
- Premiums: Premiums can be stepped (increase with age) or level (fixed).
- Age limit: Usually available for ages 40 to 80
- Acceptance: As there is no health check required to take out funeral insurance, acceptance is guaranteed as long as you fall within the age requirements of the policy
- Flexibility: May offer bonus cover, loyalty discounts, and early payout options, but far less flexibility than life insurance
- Benefit payout: Immediate access to funds for funeral-related expenses, often paid out within 24 hours of receiving an eligible claim.
- Additional features: May include optional benefits like accidental death, accidental injury and terminal illness coverage.
Life insurance with funeral cover:
- More comprehensive coverage: Life insurance cover can include far broader coverage beyond just funeral expenses, including cover for permanent disability and income loss, for example
- Coverage: Can pay out a lump-sum set benefit for a variety of reasons depending on the cover you’ve chosen, including death, terminal illness, or accidental injury. However, some life insurance policies can also pay a regular amount for a set period of time, for example if you chose an income replacement life insurance policy
- Waiting period: Some policies do have waiting periods for certain benefits, like terminal illness, but these vary depending on the insurer you choose
- Premiums: Premiums are based on a variety of factors such as where you live, your age, general health and other risk factors such as smoking
- Age limit: Generally available up until the age of 55 or 60, but may not be available for older Australians over 70, for example
- Acceptance: There is no guarantee that an application for life insurance will be accepted by every insurer, and policy acceptance may be conditional on passing a medical examination
- Flexibility: Offers far greater flexibility in terms of coverage and benefits available, with lots of customisation possible
- Benefit payout: A claim on life insurance may take time to process, and approval of the claim is not guaranteed in a short period of time
- Additional features: Can include many other options like income protection or total and permanent disability coverage.
Ultimately, the choice between funeral insurance and life insurance (which includes an element of funeral cover) depends on your budget and individual circumstances. However, generally funeral insurance will be the cheaper option compared to life insurance.
How much does cheap funeral insurance cost?
The cost of cheap funeral insurance in Australia will vary depending on several factors, including:
- which state you live in
- the amount of cover you choose
- the insurer you select
- any other add-ons or options you select
On average, funeral insurance can start from as little as $3 – $5 a week, or monthly premiums ranging from around $20 up to $60. However, these costs can increase over time, especially if you choose a stepped premium policy where payments rise as you age.
It's crucial to carefully review the terms and conditions of the policy you are considering, compare quotes from different providers, and consider the long-term affordability of the premiums before making a decision to purchase funeral insurance.
What other options do I have to help pay for my funeral?
When you're thinking about other options to help pay for a funeral, your options can include:
- Life insurance with funeral coverage: Choose a life insurance policy that includes help for funeral costs. This can offer you more financial protection beyond just covering the funeral.
- Funeral bonds: These are like savings plans for your funeral. They are a managed investment product. You put money into funeral bonds and your nominated beneficiary receives a payout when you pass away. You can add money with regular payments, or in one lump sum.
- A pre-paid funeral plan: Look into plans where you pay for your funeral in advance through a specific funeral director. This makes sure your wishes are known and can save you from higher costs later on.
- Superannuation: Your super fund could also help with funeral costs. But remember, your family might have to pay for the funeral first before getting the money from your super fund.
- Dedicated savings account: Some people set aside money just for their funeral in a special high-interest savings account. They save regularly over time as an alternative to buying funeral insurance.
Cheap funeral insurance may not always be the best option for you and your family. These are just some of the alternative ways to finance a funeral. The best option for you will depend on your personal financial situation and preferences.
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Savvy is partnered with Compare Club Australia Pty Ltd (AFS representative number 001279036) of Alternative Media Pty Ltd (AFS License number 486326) to provide readers with a variety of life insurance policies to compare. Savvy earns a commission from Compare Club each time a customer buys a life insurance policy via our website. We don’t arrange for products to be purchased from these brands directly, as all purchases are conducted via Compare Club.
Savvy does not compare all life insurance policies or providers currently operating in the market. Any advice presented above or on other pages is general in nature and doesn’t consider your personal or business objectives, needs or finances. It’s always important to consider whether advice is suitable for you before purchasing an insurance policy.
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