Prepaid funeral plans vs funeral insurance

Being financially prepared for your funeral spares your family and friends from an expense they might not be able to afford. A funeral can cost between $4,000 and $15,000¹ and many people do not have that kind of money immediately available.

Prepaid funeral plan

With a pre-paid funeral plan you choose what kind of funeral you want and either pay for it upfront or pay instalments over a fixed period of time. Funeral directors as well as some insurance providers offer pre-paid funeral plans.

When weighing up the pros and cons of a pre-paid funeral plan, keep in mind that a funeral plan only covers your funeral costs, generally with no extra payout for accidental death. 

The main disadvantage of a pre-paid funeral plan, however, is that if you die before the funeral is paid off and you are paying in instalments, then not all costs may be covered. 

Funeral insurance

Like other forms of insurance, you pay regular premiums for your funeral insurance cover. 

With Insuranceline you’re fully covered right away if you die from an accident, and after 12 months if you pass away from other causes.

And with Insuranceline’s Value Promise, after you've held the cover for 12 months, when the time comes to claim, 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. You’ll know exactly how much money your beneficiaries will receive and when they should expect to receive it.

Insuranceline is also the longest standing provider of funeral insurance in Australia*. 

Now there are even more reasons to choose Insuranceline:

  • Insuranceline Bonus Cover gives you 25% more Funeral Insurance cover at no extra cost after 5 years².  Changes you make to the cover will change the Bonus Cover 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.
  • The cost of cover does not increase because you 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 older³.
  • 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 cover ⁴ . 
  • 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.
  • Compare ways to pay for your funeral

Peace of mind for you and your family

Funeral insurance is a way to take care of your family by helping take a major financial burden right out of the picture. Once it’s done, money for funeral arrangements is one less thing to worry about further down the track.

An affordable solution

With Insuranceline funeral insurance, you can select the amount of cover you want and how you pay for it. This financial protection can be yours for as little as a few dollars a week (depending on your age and cover amount selected).

With funeral insurance, keep your premiums up to date and we'll: 

  • Cover you for life and pay out fast when the money’s needed most – generally within 24 hours of receiving a valid and complete claim.
  • Pay claims for any cause of death after the first 12 months.
  • Accidental Death covered at any time so long as premiums are paid when due.
  • Refund the Funeral Insurance premiums you’ve paid for a death that is not accidental during the first 12 months of cover. 

Find out more with our funeral insurance articles or get a quote for funeral cover today.



© 2019 Insuranceline

¹ Source: www.finder.com.au/funeral-insurance/cost-of-a-funeral (20 July 2018). Costs are estimates only and vary depending on state, and the services and features chosen.

*Source: 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.

² Bonus Cover is calculated on the fifth anniversary from the Cover Commencement Date of each person’s cover. Each adult life insured will receive an extra 25% of the average Funeral Insurance Cover Amount held during the previous five years.

³ 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.

⁴ Based on the average Funeral Insurance cover amount. 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 www.insuranceline.com.au/giftcard. 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 www.insuranceline.com.au and www.standrews.com.au.

‡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.