How Does Funeral Insurance Work?
Taking out funeral insurance could be a great way to help your family meet the cost of your funeral. And if you’re wondering how funeral insurance works, read on - it may be easier than you think.
How to apply for funeral insurance
- You can usually apply for funeral insurance over the phone or online with most funeral insurance providers. In most cases you won’t need to give any medical information.
- Funeral insurance entry age requirements do vary from provider to provider. However if you’re an Australian resident aged between 21 and 75, you should be able to find a funeral insurance provider that will cover you. InsuranceLine Funeral Insurance is available to all Australian residents aged 21 to 80.
- Choose how much funeral insurance cover you want. Think about how much your family would need to cover your funeral costs and any other immediate expenses if you were to pass away.
- In the first one to two years of your funeral insurance policy you’ll probably only be covered for accidental death. After this, your policy will usually cover you for any cause of death.
How to renew your funeral insurance
- Many funeral insurance policies have stepped premiums, which means your premiums may go up with your age each year. On the other hand, if you have a level premium policy such as InsuranceLine Funeral Insurance, your premiums will remain the same every year, provided you don’t make changes to your cover.
- Some funeral insurance policies also offer the option to increase your cover amount annually with inflation. Naturally, this will mean a slight increase to the cost of your premiums as well.
- To make sure you continue to be covered throughout your life, you’ll need to keep paying your premiums each year. This could add up to a lot of money over time, especially if you live a long life. The good news is that there’s a new feature in funeral insurance called a premium cap, which you can find in InsuranceLine Funeral Insurance. Under this feature, your cover continues for free once the total premiums you’ve paid during your policy reach the premium cap amount, and provided you haven’t made any changes to your cover. This means that you won’t end up paying too much for your insurance over the life of your policy.
How your family can make a funeral insurance claim
- Your family should contact your insurance provider as soon as possible after you pass away.
- They’ll need to fill out a claim form and provide any supporting information that the insurance provider asks for. This may include birth and death certificates or evidence from a registered medical practitioner.
- If the claim is approved, your family could receive their tax-free lump-sum payout within 24 hours.