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Funeral Insurance Over 80

Are you reaching 80 years old and wondering what your options are for funeral insurance? Find out here with Savvy.

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Written by , updated on August 25th, 2023

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Once you reach the grand old age of 80, you may find there are more options that become available to you with your existing funeral insurance. However, if you haven’t previously taken out a funeral insurance policy, you may find that you’ve now reached the maximum age limit for acceptance, and so will have to consider alternative options to help your family pay for your funeral when you pass away.

We don’t compare standalone funeral insurance policies, but we do offer a free comparison service for many other financial products, including life insurance. Find out what options are available to you for funeral cover as an 80-year-old here with Savvy.

What are my options for funeral insurance once I reach 80?

Reaching the age of 80 in Australia is a watershed moment when it comes to funeral insurance. This is because some insurers allow you to cash in your funeral policy at this age and receive a lump sum payment, effectively cancelling the policy but providing a nest egg that can finance your funeral.

Early payout benefits do vary between insurers. With some, the magic age for an early payout is 80, and with others it’s 85. Some policies offer to double your benefit amount if you cash it in before you pass away, while others offer around 120% or more of your agreed benefit sum.

Because the terms of the funeral insurance you have vary so widely between insurers, it is very important that you read the policy disclosure statement (PDF) for your specific plan, which gives exact details of how the early payout benefit works. If you don’t have a copy of this document, you can contact your insurance company and ask for a copy.

However, if you’ve reached the age of 80 and did not take out a funeral insurance policy when you were younger, you will have missed the boat, as most insurers in Australia have a maximum age limit for new funeral insurance policies, often starting from over 70-years-old upwards.

What other options do I have as an 80-year-old to help my family pay for my funeral costs?

If you are worried about how your family will be able to afford to pay for your funeral, here are other options that could potentially offer you solutions:

A pre-paid funeral plan:

Plan and pay for your funeral in advance with a chosen funeral director
Ensure your exact wishes and plans are followed to eliminate your family having to guess what you would have wanted
Lock in today's prices to avoid future cost increases

A dedicated savings account:

Create a special savings account to be used to pay for your funeral expenses
Put in a little money regularly to build up the funds over time
Make sure you let your family know about the savings account and how to access it quickly when you pass away

Funeral bonds:

These are a financial product designed especially for saving for funerals.
You earn interest on your savings, and can add money regularly, or in a lump sum all at once
When you pass away your nominated beneficiary gets a lump sum or the funeral director is paid directly

Superannuation:

See if you have any provisions for death benefits with your superannuation fund
Your family may have to pay the upfront costs for the funeral and then claim them back from your super fund
Unlike funeral insurance, super funds don’t usually make instant payments to help with funeral expenses

Government assistance:

Check if you're eligible for any help with funeral expenses from the state government
It's possible you may be covered for funeral expenses by the Department of Veterans’ Affairs if you are a veteran
Some charities also offer support with funeral expenses

Explore your other insurance options:

Check whether any life insurance policy you have offers funeral cover
It is possible for other family members to take out family funeral insurance on your behalf
Some insurers offer seniors insurance specifically designed for the over 60’s

What are some of the costs involved in a funeral?

These are some of the costs your family may experience when planning a funeral. These ballpark figures should assist you to calculate the cost of a planned funeral:

Funeral notice: Announcing a person's passing, and details of the funeral or wake in a local newspaper. Estimated cost: $200 to $300+
Casket or coffin: Choices range from less expensive bio-degradable cardboard coffins to elaborate wooden caskets that can be highly customised. Estimated cost: $1,000 minimum up to $10,000 or more
Transportation: The hire of a hearse and transfers to and from the funeral home. Estimated cost: $500+
Funeral service: Most of the organisation work will be handled by the funeral director. Estimated cost: $3,000 to $5,000+
Burial costs: Costs for a burial plot and a headstone can be quite high. Estimated cost: $5,000+
Cremation: It is cheaper to be cremated than to have a burial, with the cost of a basic cremation service starting at $3,000.
Urns: Less costly than coffins, various options are available ranging from simple china urns to elaborate gold or silver ones. Cost from $50 upwards.

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Frequently asked questions about funeral insurance for the over 80s

If I cash in my funeral insurance who gets the money?

If you decide to cash in your funeral insurance early, then you will receive any benefits from that insurance policy as the policy holder.

Do I have to cash in my funeral insurance policy when I reach 80?

No, many insurers will allow you to continue to pay for funeral insurance until you pass away. Others have an age limit of 100 for holding an active policy.

Do some funeral insurance policies have free insurance for over 85s?

Yes, there are some policies that offer free continuing insurance for seniors over the age of 85 as long as the funeral insurance policy has been in place for at least five years.

Do stepped premiums offer cheap insurance for someone aged over 70?

No. If you take out a funeral insurance policy in your 70’s before the policy cut-off age, you may find that a stepped payment plan is either very expensive, or not available, and only fixed plans are on offer for someone aged over 70.

Read more about funeral insurance

Disclaimer:

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.

For any further information on the variety of insurers compared by Compare Club or how their business works, you can read their Financial Services Guide.

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Quantum Savvy Pty Ltd (ABN 78 660 493 194) trades as Savvy and operates as an Authorised Credit Representative 541339 of Australian Credit Licence 414426 (AFAS Group Pty Ltd, ABN 12 134 138 686). We are one of Australia’s leading financial comparison sites and have been helping Australians make savvy decisions when it comes to their money for over a decade.

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1300 974 066

Sign up to our newsletter

Disclaimer and important things you should know

Quantum Savvy Pty Ltd (ABN 78 660 493 194) trades as Savvy and operates as an Authorised Credit Representative 541339 of Australian Credit Licence 414426 (AFAS Group Pty Ltd, ABN 12 134 138 686). We are one of Australia’s leading financial comparison sites and have been helping Australians make savvy decisions when it comes to their money for over a decade.

We’re partnered with lenders, insurers and other financial institutions who compensate us for business initiated through our website. We earn a commission each time a customer chooses or buys a product advertised on our site, which you can find out more about here, as well as in our credit guide for asset finance. It’s also crucial to read the terms and conditions, Product Disclosure Statement (PDS) or credit guide of our partners before signing up for your chosen product. However, the compensation we receive doesn’t impact the content written and published on our website, as our writing team exercises full editorial independence.

For more information about us and how we conduct our business, you can read our privacy policy and terms of use.