Can I buy funeral insurance on behalf of another family member?

Yes, you can purchase funeral insurance on behalf of other family members such as your parents . You can be the policyholder and pay the premiums for them, ensuring they have coverage even if they're unable to apply themselves. As long as their name is listed as the insured person, the coverage will apply to their funeral expenses, regardless of who pays the premiums.

How much will a funeral cost my family?

A survey by Australian Seniors found the average cost of a burial service was just over $9,000, while the average cost of a cremation was $6,334. However, a low-cost basic cremation will cost a minimum of $3,000, while a basic burial service will start from $6,000. Savvy can help you calculate the cost of a funeral and also compare life insurance policies.

Are there any waiting periods with family insurance?

Yes, in the first 12 months after taking out funeral cover, you may only be covered for accidental death. During this period, if you pass away due to illness your premiums may be refunded. However, after the 12-month period your beneficiary will receive the full benefit amount regardless of cause of death (with the exception of suicide.)

What other options are there to taking out family funeral insurance?

Other options which will assist you to pay for the funeral costs of a family member include: Life insurance with funeral cover: Take out a life insurance policy that includes funeral cover for wider financial protection. Funeral bonds: This is a managed financial product similar to a savings plans for your funeral. Pre-paid funeral plan: Pay for your funeral in advance through a specific funeral director. This will ensure your exact wishes are known. Superannuation: Your super fund could also help with funeral costs, but you won’t get a quick payout so you may need to pay for the funeral out of pocket first. Dedicated savings account: Some families save regularly over time, instead of getting funeral insurance.