Funeral Insurance Companies
Find out which companies offer funeral insurance in Australia with Savvy today.
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There are various ways to pay for a funeral in Australia. One option is to take out standalone funeral insurance. This type of insurance should not be confused with life insurance offering funeral cover, which is a much broader form of insurance. Life insurance can also offer a variety of options to cover incidents such as accidental injury, illness and disability caused by an accident. We do not compare standalone funeral insurance policies, however, we do offer a free comparison service between different types of life insurance.
Find out who does offer funeral insurance and what this type of cover can offer right here with Savvy. Learn about the benefits offered by funeral insurance and what you should look for when comparing policies.
What is funeral insurance, and how does it work?
Funeral insurance is a type of financial protection designed to cover the expenses associated with a person's funeral after they pass away. With funeral insurance, policyholders pay regular premiums, typically on a monthly or fortnightly basis, in exchange for a predetermined lump-sum payment to their beneficiaries upon their death. This payment is intended to help with the cost of a funeral, such as death notifications, burial or cremation, a coffin or casket, flowers, and other associated expenses.
However, there are no strict limitations as to what the money can be used for, so it can be used for airfares for distant relatives, for paying off debt or for any other purpose decided on by the named beneficiary.
- Coverage amount: Funeral insurance policies typically offer a coverage amount ranging from a minimum of $3,000 up to $15,000 or more.
- Additional benefits: Many funeral policies include additional benefits such as terminal illness cover, accidental death cover, accidental serious injury cover, family coverage, and early payout options.
- Waiting period: There's usually a 12-month waiting period after buying funeral insurance before the full benefit amount will be paid out. In the first 12 months, the full benefit payout may only apply in cases of accidental death.
- Premium cost factors: Premiums are influenced by factors such as the age of the insured, smoking status, chosen benefit amount, and the insurance provider.
How should I compare funeral insurance policies?
When comparing funeral insurance policies, it's essential to look at what the policy offers and consider various factors to find the most suitable coverage:
- Premium costs and payment method: Compare premium costs from different providers to ensure they fit your budget. Some insurers offer the choice of level insurance premiums, which means the premium amount remains the same for the life of the policy (except for inflation adjustments) or stepped policies, which start off cheaper but increase as you age.
- Coverage amount: Determine the minimum coverage amount you need to cover your planned funeral expenses adequately.
- Payout speed: Check how quickly the insurance company will pay out the benefit after a claim has been submitted. The best funeral insurance companies offer speedy payout of 24 hours or less to ensure that funds are available quickly to pay for the funeral costs.
- Premium cost guarantees: There has been criticism of the funeral insurance industry for offering funeral polices which end up costing you more than the benefit amount required to cover the cost of a funeral. Check that the policy you're considering offers a price guarantee that your premiums won’t exceed the total benefit amount in the final payout.
- Medical requirements: Most insurers don’t require a medical to be undertaken to issue a funeral insurance policy. Acceptance is automatic as long as the insured person falls within the policy age requirements, which are usually either 40 or 50 up to 80 years old.
- Waiting periods: Compare the waiting period for the full benefit payout to understand when coverage becomes effective. Some policies only offer cover for accidental death in the first 12 months of the policy.
- Policy inclusions: Check for additional benefits like terminal illness cover, accidental death cover, family coverage, early cash-in options and maximum benefit payment age.
Which insurance companies offer funeral insurance in Australia?
Apia
Apia claims to be Australia’s leading insurer for the over 65s, and has been offering seniors’ insurance for over 30 years. It offers a range of insurance types including car, home, apartment, retirement living and assisted living insurance.
- Cover offered: Minimum $3,000, maximum $25,000 (with conditions)
- Minimum entry age: 45
- Maximum new policy age: 80
- Cost: Cover can start from just $2.95 a week
- Payment offer: Pay your premium annually and get a month free
- Premium discounts offered: Yes, 5% discount for additional family members and for bundling different insurance policies
- Additional accidental death cover: Add-on available ranging from $1,000 to $50,000
- Bonus cover: After five years, receive an additional 10% bonus cover
- Early cash in: Once you reach aged 85, you can choose to cash in your policy and receive 120% of your benefit amount
Australian Seniors Insurance
Australian Seniors specialises in insurance for the over 50s, and offers a wide range of insurance policies including car, home, health, life, pet and travel insurance, all aimed at seniors.
- Cover offered: Minimum $3,000, maximum $15,000
- Minimum entry age: 50
- Maximum new policy age: 79
- Premium age payment limit: Once you reach 85, you will no longer have to pay premiums for your policy, which will remain active
- Bonus cover: Once you reach 85, you’ll receive 25% extra bonus cover
- Level premiums offered: Yes
- Terminal illness cover offered: Yes, 100% of benefit paid out after terminal diagnosis
- Accidental death: Triple benefit amount paid out for accidental death
- Early policy cash in: Receive 75% of your cover amount if you cash in your policy once you reach 85
Guardian Insurance
Guardian Insurance is an Australian general insurer offering life insurance, term insurance, funeral and pet insurance.
- Cover offered: Minimum $3,000, maximum $15,000
- Minimum entry age: 40
- Maximum new policy age: 79
- Accidental death: You’ll receive a triple payout if you suffer accidental death having held your policy for at least a year
- Terminal illness cover: Yes, after 12 months of holding a policy you’ll receive 100% benefit cover for a terminal illness diagnosis
- Guaranteed payout: Once you reach 100, your cover will end and you’ll receive a guaranteed payout of your full benefit amount
- Early cash in: Once you reach aged 85, you can choose to cash in your policy and receive 75% of your benefit amount
- Joint policies available for couples
- Only accidental death and serious injury paid out in the first 12 months
Insuranceline
Insuranceline specialises in insurance for injury, illness and death, and offers life insurance, funeral insurance and income protection insurance.
- Cover offered: Minimum $3,000, maximum $15,000
- Only accidental death and serious injury paid out in the first 12 months
- Bonus cover: Once you’ve held your policy for five years you’ll receive an additional 10% payout
- Payment offer: Pay your premium annually and get a month free
- Flexible payment options: Pay fortnightly, monthly or annually
- Early cash in: Once you reach aged 85, you can choose to cash in your policy and receive 120% of your benefit amount
- Value promise: They’ll pay the greater of cover amount plus bonus cover, or 100% of the premiums contributed. A 70% payout value promise option is available if you want lower premiums.
- Family discounts: A 5% discount offered for additional family members
- Only accidental death paid out in the first 12 months
Real Insurance
Established in 2005, Real Insurance is an award-winning insurer offering car, home, life, health, pet and travel insurance.
- Cover offered: Minimum $3,000, maximum $15,000
- Minimum entry age: 40
- Maximum new policy age: 79
- Terminal illness cover: After 12 months of holding a policy you’ll receive 100% benefit cover for a terminal illness diagnosis
- 12-month refund: After holding a policy for 12 months you’ll receive 10% of the premiums you’ve paid as a cash-back bonus
- Only accidental death and serious injury paid out in the first 12 months
- Limit to accidental serious injury: Cover for serious injury expires on the policy anniversary after your 75th birthday
- Early cash in: Once you reach aged 85, you can choose to cash in your policy and receive 75% of your benefit amount
- Bonus cover: Once you reach 100 years of age you’ll receive bonus cover of 25% added to your benefit amount
Suncorp
Suncorp is a well-known financial services provider operating in Australia and New Zealand for over 100 years. It offers a wide range of services including banking, home loans and many types of insurance.
- Cover offered: Minimum $3,000, maximum $25,000 (with conditions)
- Only accidental death paid out in the first 12 months
- Family discounts: A 5% discount offered for additional family members added to the same policy
- Bonus cover: Once you’ve held your policy for five years you’ll receive an additional 10% payout
- Early cash in: Once you reach aged 85, you can choose to cash in your policy and receive 125% of your benefit amount
- Value promise: They’ll pay the greater of cover amount plus bonus cover, or 100% of the premiums contributed. A 70% payout value promise option is available if you want lower premiums.
- Payment offer: Pay your premium annually and get a month free
- Additional accidental death cover: An add-on is available offering additional cover ranging from $1,000 to $50,000
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