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 $15,000 (Money Smart, Australian Securities & Investments Commission, 2012) and many people do not have that kind of money immediately available.

In Australia, many people choose either a pre-paid funeral plan or funeral insurance to cover the cost of their funeral.

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 installments 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, with no extra payout for accidental death. 

The major disadvantage of a pre-paid funeral plan, however, is that if you die before the funeral is paid off, then not all costs will 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 accidentally, and after 12 months if you pass away from natural causes. The full amount you’re covered for is paid out, usually within 24 hours. 

You’ll know exactly how much money your beneficiaries will receive and when they should expect to receive it.

There are many other benefits too, such as:
  • Premiums never go up on Insuranceline funeral insurance (unless you make changes to your policy)
  • When you reach your premium cap, your cover continues but your payments don’t. You stop paying premiums from then on
  • We pay out double the insured amount if you die as a result of an accident
  • Inflation protection protects the value of your insurance payout against rising costs
  • Our Lifetime Protection Promise means that if you've held your policy and paid premiums for more than 5 years, even if you cancel your cover, your loved ones will still be able to claim on your death a proportion of the cover amount you once held.
  • For your 90th birthday we give you free cover – no more premiums to pay for the rest of your life!

To learn more, watch our funeral insurance videos. Compare ways to pay for your funeral

Peace of mind for you and your family


Investing in funeral insurance is a way to take care of your family by taking 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.

With funeral insurance, keep your premiums up to date and the cover is: 
  • Guaranteed to be paid out in full, for any cause of death after the first 12 months of cover
  • Guaranteed to pay out double the sum insured in the event of accidental death from the day cover commences
  • Paid out quickly– generally within 24 hours of the claims requirements being sent in
  • There to assist your loved ones with the cost of your funeral or other unexpected costs

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