You can take out a Funeral Insurance policy on behalf of your parents to ensure they are covered. We help you through the process of putting cover in place for your parents.
As our parents move into their golden years it’s good to start preparing for more difficult conversations. Discussing topics such as finances and end of life arrangements is never easy to do but it is important to ensure that the correct measures are in place for when the time comes.
Funeral insurance can help ease any additional financial burden to let you and your family concentrate on grieving without unnecessary stress.
You can take out a policy on their behalf to ensure they are covered. Even if your parent(s) don’t want to talk about a topic like funeral insurance, which is understandable, we can help you through the process of putting funeral cover in place for your parents.
End-of-life expenses and funeral costs add up fast
Many Australians are unaware of how much a funeral and any associated final expenses actually cost—until they get the bill.
ASIC’s MoneySmart website says funerals can cost anywhere from $4,000 for something simple to $15,000 for a more elaborate funeral (costs are estimates only and vary depending on the state, and the services and features chosen). Typical items to account for, depending on the funeral type, include:
- Funeral director fees
- Death certificates
- Cemetery plot
- Newspaper announcements
- Wake or other memorials/ tributes
Primarily, funeral insurance is there to cover the cost of the funeral itself along with various other expenses that you might need to cover.
Some examples of how funeral insurance can be used to help you provide the perfect final farewell that your parent would love are:
- Flight expenses for family members who need to travel from further afield for the funeral
- Venue hire, catering, or a bar tab for the wake
- Creating small keepsakes for funeral attendees to remember your parent by
- A donation to a cause that your parent was close to, that may not be in their will
- A small cash gift for their grandchildren
Bringing up the topic of Funeral Insurance with parents
It’s always difficult to talk about death, especially when it involves your own parents who you love and probably can’t imagine living without. However, the earlier you initiate the conversation about funeral insurance costs and planning, the sooner you and your parents can make the right arrangements and rest easy.
Before you look at getting a funeral insurance policy, it makes sense to talk to your parents to find out what kind of resources they already have, and if they already have a plan in place. This can help you both feel more secure in the knowledge there’s a plan in place for when the time comes.
It’s also a good idea to find out what your parents want for their funeral.
- Do they want to be buried or cremated?
- If they want to be buried, do they already have a funeral plot reserved?
- If they prefer cremation, what do they want done with their ashes?
- If they don’t want either, is there an alternative to a traditional funeral they would prefer?
- Is there a song they’d like played?
- Is there particular clothing they’d like to wear?
These details could factor into the type and amount of funeral insurance they need.
Can I get funeral insurance for other relatives?
Yes. You can generally take out funeral insurance for a relative. Some providers may only offer to cover you and your partner, but most will provide cover for any adult or relative you choose to nominate.
Just make sure you have the consent of the family member you want to insure to buy funeral insurance on their behalf. Your relative will be told that there is a policy taken out over their life.
Can I nominate myself to be the beneficiary?
If you’re buying funeral insurance for your parent you are the owner of the policy, despite not being the person insured. This means that you are automatically the beneficiary should you need to claim on the policy.
Cover under the Funeral Insurance Benefit is for Accidental Death only for the first 12 months of cover, including for any increases. Accidental Death has a special meaning in the PDS and some causes of death are excluded during this time—please refer to the PDS or call us for further details. After the first 12 months, the Funeral Insurance Benefit provides cover for all causes of death.