Funeral Insurance Information Sheet

Your funeral gives your family a chance to say goodbye. Funeral Insurance provides peace of mind, to know that your family has one less thing to worry about if you were to pass away.  Funeral Insurance will be paid to your nominated beneficiary or estate to cover the cost of your funeral.

There are different options available to pay for a Funeral in Australia.  We recognise that there are both advantages and disadvantages to funeral insurance versus other non-insurance options, and each option may be appropriate for different customers in different circumstances.  We think it’s important that people get their own information and decide which option is right for them.

Many Australians just don’t have the money immediately available to pay for the cost of a loved one’s funeral and other related expenses. Taking out Funeral Insurance with Insuranceline is a way of helping to make sure your family won’t be left looking for funds at a tough time. Insuranceline provides the money fast, usually within 24 hours of receiving a valid and completed claim.

Insuranceline has a new funeral insurance product that is simple and easy to understand.

Key features

  • The Insuranceline Value Promise means that after your first 12 months of cover, when a claim is made your beneficiary/ies will receive the Funeral Insurance Benefit – plus any applicable Bonus Cover – or the total premiums paid for Funeral Insurance, whichever is higher.
  • Insuranceline Bonus Cover gives you 25% more Funeral Insurance Cover at no extra cost after 5 years¹.
  • The cost of cover does not increase with age.  With Insuranceline, as long as you don’t make any changes to your cover, your premium won’t go up just because you get older².
  • The Early Payout Option gives you a choice after reaching age 85 of keeping your cover going and continuing to pay premiums for it, or of cashing it in early to receive an immediate payout of 150% of your average funeral cover³.
  • An unexpected, accidental death or serious accidental injury can place extra financial strain on a family.  Extra Accidental Death and Accidental Injury Cover can be added to your Funeral Insurance benefit and is designed to provide extra financial support to help out. To help with the often unexpected costs associated with an Accidental Death, the funeral insurance cover amount you choose will be matched by an equal amount of Extra Accidental Death Cover on cover commencement. You can tell us not to include Extra Accidental Death Cover for a lower premium.  

Fast facts on our Funeral Insurance (as at 1 November 2017)

  • 329,081 lives are insured.
  • $58,333,347 in funeral insurance claims were paid between 1 Nov 2016 and 31 Oct 2017.
  • 30% of Funeral Insurance claims are paid within 5 years of the policy being taken out, paying an average of over $8,270 per claim.
  • More than 90% of our customers claim before they have paid in the equivalent cost of a funeral.
  • Even after 10 years, the average claim payout is 30% more than the cost of the premiums paid over that time.
  • We offer a 30 Day money back guarantee which means you can take out cover and if you change your mind or cancel the policy within 30 days, we’ll provide you a full refund.

Common Questions

1.  What’s the difference between funeral insurance and funeral bonds/ pre-paid funerals?

Funeral savings plans, funeral bonds and pre-paid funerals are options for people able to afford the initial up-front payment – which can be as much as one-third of the value of the funeral being purchased.  The balance is then payable in instalments over a limited period of time.  If a customer dies before the full amount has been paid or invested, the family may only get back what has been paid in.

Funeral insurance spreads the cost of the cover over many years and means it’s not necessary for people to pay a large up-front investment to establish the policy.

With a funeral insurance policy, payment of the full cover amount is guaranteed for Accidental Death in the first 12 months of cover, and for other causes of death after that time – no matter how much (or how little) a customer has paid in premiums. Exclusions may apply.

2.  Can customers end up paying more in premiums than the benefit amount?

The Insuranceline Value Promise means that after your first 12 months of cover, when a claim is made your beneficiary/ies will receive the Funeral Insurance Benefit – plus any applicable Bonus Cover – or the total premiums paid for Funeral Insurance, whichever is higher.

3.  Why do premiums increase as a customer gets older? What are stepped premiums?

Insuranceline Funeral Insurance only offers level premiums. This means that the premium you pay when you first take out the policy is based on your age at the time you started the cover, and is likely to remain the same for the life of the policy².

Previously, as was the industry norm, premiums took into account the likelihood of  a claim being made by age, so, as a customer got older, the cost of cover would increase (this is known as stepped premiums).

For a substantial portion of our customers, the stepped premium option was favoured as it offered a lower premium in the beginning. Level premiums means customers pay a little more at the outset of a policy, but premiums then don’t increase with the customer’s age. Some of our customers over recent years have told us that the stepped increases can be difficult to manage at older ages. We’re concerned about long term affordability for our customers, so Insuranceline has made level premiums the new standard.

4.   What if customers can no longer afford their premiums?

To keep cover affordable, Insuranceline offers a number of options to our existing customers.  We recommend if our customers are concerned about losing their cover, that they contact us and talk about what we can offer them.

As funeral insurance is an insurance policy and not a savings product, if you don't keep your premium payments up to date, you may not get anything back - as is the case for many insurance policies. If you are worried about your ability to afford your premium, please call us and we will try to help find a way to ensure you can maintain your cover. 

1300 880 750 8am – 6pm (AEST) Monday to Friday

5.   Who makes sure Insuranceline (which is backed by TAL) is looking after the interests of customers?

Like all insurance companies in Australia, we are regulated by the Australian Prudential Regulation Authority (APRA) and the Australian Securities and Investments Commission (ASIC). We are also a member of the Financial Ombudsman Service – a free and independent service for consumers who have complaints about insurance policies.

Insuranceline offers funeral insurance direct to customers in addition to other forms of life insurance. Insuranceline is proud to provide the peace of mind our products and service offer our customers. We aim to meet the needs of all Australians and their families.

© 2019 Insuranceline

¹Changes you make to your cover will change the Bonus Cover amount. Bonus Cover is calculated on the fifth anniversary from the Cover Commencement Date. Each adult life insured will receive extra 25% of the average Funeral Insurance Cover Amount held during the previous five years. 

² The premiums may change if you make changes to your Policy or if the underlying premium rates are changed by us. However, you will never be singled out for a premium rate increase.

³ Based on the average funeral insurance cover amount and applies from the policy anniversary after age 85. Early payout will cancel your cover. Excludes Bonus, Extra Accidental and Injury Cover. The Early Payout Option may affect entitlements to the age pension and other government benefits.

^Offer available to Insuranceline customers who complete an application for a Life Insurance, Income Protection or Funeral Insurance policy between 20 November 2017 and 31 March 2020 (inclusive) and are issued with a policy with a commencement date prior to 00.01AM (AEST) 1 May 2020. To be eligible policyholders must hold the policy for 2 consecutive months and pay 2 months’ premiums in full. One Gift per customer. Full terms and conditions at Gift Card issued by Indue Ltd ABN 97 087 822 464 AFSL number 320 204. We reserve the right to change the Visa gift card issuer at any time.

~Bonus 25% more cover is calculated on the fifth anniversary from the Cover Commencement Date. Each adult life insured will have an extra 25% of the average FIC amount held during the previous five years added to their Funeral Insurance benefit. Terms and Conditions apply. Refer to the PDS for more information.

The information provided on this website is general advice only and does not take into account your individual needs, objectives or financial situation. Before you decide to buy or to continue to hold an insurance product, you must read the relevant Combined Product Disclosure Statement (PDS) and the Financial Services Guide (FSG). The PDS/FSG contains important information which will help you understand the product, including what's covered and what's not covered and to decide whether it is appropriate for you.

Promoted by Insuranceline, a trading name of TAL Direct Pty Limited (of Level 16, 363 George Street, Sydney NSW 2000) ABN 39 084 666 017 AFSL 243260. TAL Life Limited ABN 70 050 109 450 AFSL 237848 issues the life insurance benefits. St Andrew's Insurance (Australia) Pty Ltd ABN 89 075 044 656 AFSL 239649 issues the Involuntary Unemployment Cover. Pet Health Plan is issued by The Hollard Insurance Company Pty Ltd ABN 78 090 584 473, AFSL 241436.

The way in which Insuranceline & St Andrew’s collect, use, disclose and secure your personal information is set out in their respective Privacy Policies available at and

‡Insuranceline is the longest standing provider of funeral insurance in Australia, based on: Strategic Insight, Actuaries & Researchers. Funeral Insurance means a policy with periodic premium payments that provides a lump sum to help pay for funeral and associated expenses when you die, and excludes pre-paid Funeral Plans and Funeral Bonds.