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 help 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 compared to other non-insurance options, and each option may be appropriate for different people 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.
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 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, provided the premiums continue to be paid on time, 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 they get when they claim?
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 more consistent 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 start lower but increase (this is known as stepped premiums).
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.
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