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Planning • 7 min read

Funeral Insurance Information Sheet

Want to know more about Funeral Insurance? Read our funeral information sheet, and start the journey to gain peace of mind for you and your family.

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.

Insuranceline has a Funeral Insurance product that is simple and easy to understand.

Key features

The Insuranceline Value Promise means that at the time of a claim for the Funeral Insurance Benefit, we'll pay the Funeral Insurance Cover Amount, plus any Bonus Cover, or 100% of the premiums paid toward your Funeral Insurance cover—whichever is greater.

If you are looking for a lower cost option, you may choose 70% Value Promise so that at the time of a claim for the Funeral Insurance Benefit, we'll pay the greater of the Funeral Insurance Cover Amount, plus any Bonus Cover, or 70% of the premiums paid toward your Funeral Insurance cover.+

  • Insuranceline Bonus Cover gives you 10% more Funeral Insurance Cover at no extra cost after 5 years.1
  • The cost of cover does not increase each year with age. With Insuranceline, as long as you don’t make any changes to your cover, your premium won’t go up every year just because you get older.2
  • 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 120% of your average Funeral Insurance Cover Amount.3
  • An unexpected, accidental death can place extra financial strain on a family. Accidental Death Cover can be added to your Funeral Insurance benefit and is designed to provide extra financial support.

Fast facts on our Funeral Insurance

  • As at 30 June 2019, 295,588 lives are insured on our Funeral Insurance policies.
  • $69,630,661 in Funeral Insurance claims were paid between 1 April 2018 and 30 June 2019.
  • Based on a 5 year period of claims received (1 July 2014 - 30 June 2019), 30% of Funeral Insurance claims were paid within 5 years of the policy being taken out, paying an average of over $9,142.21 per claim.
  • More than 70% of customers whose claims were paid between 1 April 2018 and 30 June 2019 claimed before they had paid in the equivalent cost of a funeral.
  • Based on the claims paid between 1 April 2018 and 30 June 2019, even after 10 years, the average claim payout was 50% more than the cost of the premiums paid over that time.
  • You have the benefit of a 30-day money back guarantee which means you can take out cover and if you change your mind or cancel the policy within 30 days, we’ll provide you a full refund.

Common Questions

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.

Can customers end up paying more in premiums than the benefit amount they get when they claim?

The Insuranceline Value Promise means that at the time of a claim for the Funeral Insurance Benefit, we'll pay the Funeral Insurance Cover Amount, plus any bonus cover, or 100% of the premiums paid toward your Funeral Insurance cover—whichever is greater.

If you are looking for a lower cost option, you may choose a 70% Value Promise so that at the time of a claim for the Funeral Insurance Benefit, we'll pay the greater of the Funeral Insurance Cover Amount, plus any Bonus Cover, or 70% of the premiums paid toward your Funeral Insurance cover.+

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 isn't recalculated every year to take account of your increasing age.2

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).

Level premiums means customers pay a little more at the outset of a policy, but premiums then don’t increase every year with the customer’s age. While level premiums can still increase, they'll still be based on your age at the time you started your policy, and no one is singled out for an increase.

Some of our customers over recent years have told us that the stepped increases can be difficult to manage at older ages. We're concerned about long term affordability for our customers, so Insuranceline has made level premiums the new standard.

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.

Contact us if you have any questions.


Important information

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.

+ Highest payout is paid on receipt of a valid claim and is calculated on your Funeral Insurance Cover Amount or premiums paid toward your Funeral Insurance cover. Read more about the Insuranceline Value Promise in the PDS.

1 Changes you make to your cover will change the Bonus Cover amount. Bonus Cover is calculated on the fifth anniversary from the Cover Commencement Date. Each adult life insured will receive extra 10% of the average Funeral Insurance Cover Amount held during the previous five years.

2 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.

3 After the Policy Anniversary following a Life Insured reaching age 85, the Policy Owner can cash in the policy and receive a payout of 120% of the Life Insured’s average Funeral Insurance cover amount, excluding Bonus Cover, Accidental Death Cover. The Early Payout Option may affect entitlements to the age pension and other government benefits.

Backed by TAL

^Insuranceline Win 1 of 5 $1000 Visa Cards (Competition). Subject to the Terms and Conditions, the Promotor is offering customers a chance to win one of five Digital Visa Gift Cards valued at $1,000, in one of the four draws. Entry commences on the 1st of April 2024 and will run for four months until 11:59pm AEST on the 31st of July 2024 (Entry Period). During the Entry Period, to be eligible to participate in the Competition, customers must get a quote and take out a new Insuranceline Life Insurance, Income Protection Insurance, or Funeral Insurance policy to enter the Competition. A maximum of one (1) entry into the Competition will be awarded per eligible policy. The Promotion is not open to existing customers, or customers who have cancelled a Promoter branded policy in the 12 months prior to the commencement of the Entry Period and then taken out a new Insuranceline branded policy. Each of the four Prize Draws will take place at Level 16, 1 Denison Street, North Sydney NSW 2060 on the respective Prize Draw and Time, as listed in the table in Condition 13 (and if any Redraws if there are any unclaimed prizes, Condition 19) of the full Terms and Conditions, and the winners will be sent an email and will be attempted to be notified via phone within two (2) business days of the Draw and published on Max. retail value of the total prize pool is $20,000. To be eligible at time of the draw, customers must still have an active policy and have paid 1 month of premiums in full. View eligibility criteria and full terms and conditions here. Promoter: TAL Direct Pty Limited ABN 39 084 666 017 AFSL 243260. Permits: NSW NTP/09255, ACT TP24/00483, & SA Licence No. T24/388.

**Bonus 10% more cover is calculated on the fifth anniversary from the Policy Commencement Date. Each adult life insured will have an extra 10% of the average Funeral Insurance Cover amount held during the previous five years added to their Funeral Insurance benefit. Terms and conditions apply. Refer to the PDS for more information.

#Claims paid figures relate to all Insuranceline life insurance policies in the 2021 financial reporting year (1 April2021 to 31 March 2022). All claims on Insuranceline policies are assessed against the relevant policy terms and conditions. These terms and conditions, as well an explanation of the claims process, can be found in the applicable Product Disclosure Statement. Claims are administered and settled by the insurer, TAL Life Limited.

***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.

The information provided on this website is general advice only which means it does not take into account your individual needs, objectives or financial situation. For this reason, you should consider whether it is appropriate for you, and 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. The Target Market Determination (TMD) for the relevant product, where applicable, is also available.

If you are considering cancelling a policy you already hold in order to replace it with a new policy, make sure you read the terms and conditions of both policies before you make a decision. The cover terms may be different, you may lose benefits accrued under your existing policy, and waiting periods may apply to the new policy. Changes in your personal circumstances (such as your age, health, and employment) that have occurred since your existing policy was originally taken out may also affect your new policy. As your application for a new policy may not be accepted, and some policies may be unable to be reinstated after they have been cancelled, you should consider waiting until your new policy is confirmed before you cancel any existing cover.

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.

The ways in which Insuranceline collects, uses, discloses and secures your personal information are set out in the Insuranceline Privacy Policy, which is available free of charge on request.