How to know you're getting the best value funeral insurance

You’re probably already aware that taking out funeral insurance can give your loved ones peace of mind knowing they’ll be able to cover your final expenses when the inevitable happens. But do you know if you’re getting the best value?

When it comes to funeral insurance, not all policies were created equal so it helps to shop around to ensure you have cover that not only suits your needs, but offers value for money.


How is your funeral insurance premium calculated?

It helps to understand some of the factors that influence the amount you’ll pay for your funeral insurance policy premium:

  • Cover amount - Generally, the higher the amount of cover required, the higher your premium will be
  • Your Age - The cost of a premium is based on the age you are when your cover starts
  • Your Gender - Women have a greater life expectancy than men so premiums for women may be lower
  • Optional benefits - Some funeral insurance providers allow you to add extra features to your policy such as accidental death.

Know what to look for in funeral insurance providers

A cheaper premium doesn’t always mean value for money. There are other criteria to consider when choosing a funeral insurance policy such as the features and benefits. It’s important to make sure that you select a policy that suits your needs. Some things to consider include:

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  • How long are the waiting periods? Waiting periods will differ between policies so it’s important to know what you’re covered for in the event of a claim. For example some policies will have a 12 month waiting period where you will only be covered for accidental death, for other policies this may be longer.
  • Does the insurer offer bonus cover or discounts? Some providers may offer discounts, or loyalty benefits. There could be discounts if you take out a joint policy, a loyalty bonus or annual payment discount. Consider what’s important to you and your family when weighing up your decisions.
  • Is the claims process straightforward? When the inevitable happens you want to know that your loved ones will have a smooth and straightforward claims process. You may also consider how quickly a benefit is paid so that your loved ones aren’t out of pocket.
  • Does the insurer have a good reputation? For many people, being insured with a provider they can trust is an important factor when making a decision about which policy to choose.

The difference between Stepped and Level premiums

Look at whether your insurer offers level or stepped premiums and consider the pros and cons for each type to help you determine the long term affordability of your funeral policy:

  • Level premiums: you may pay a slightly higher premium to begin with but the premiums usually do not increase as you age.* The policy may work out cheaper overall in the long term and the fixed premium amounts may help you to budget for your premiums in later years.
  • Stepped premiums: may be cheaper in the short term but tend to increase as you age. A stepped premium may seem more attractive in the short term due to a lower premium amount but you should consider how much it might cost when you get older.

Why so many thousands of Australian’s trust Insuranceline

We are the longest standing funeral insurance provider in Australia‡, and we pride ourselves on providing Australians access to straightforward insurance they can trust.

Some of the key features of Insuranceline’s Funeral Policy include:

  • Premiums don’t go up just because you get older‡
  • You receive 10% Bonus Cover after five years as a reward for loyalty~
  • After you turn 85, you can choose to cash in your policy and receive 120% of your average Funeral Insurance Cover Amount, not including Bonus Cover.#
  • Your loved ones will always receive the highest payout after 12 months amount upon claim. Whether it's your cover amount, or the premiums you've paid+
  • Fast payouts, usually received within 24 hours of lodging a completed claim.
  • Pay your payments annually and get 12 months cover for the price of 11
  • Enjoy peace of mind with our 30 day money-back guarantee.

~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.

*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. 

#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

+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.

‡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.

^Offer available to Insuranceline customers who complete an application for a Life Insurance, Income Protection or Funeral Insurance policy between 20 November 2017 and 30 June 2020 (inclusive) and are issued with a policy with a commencement date prior to 00.01AM (AEST) 1 August 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.

The information provided in this article 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 Financial Services Guide (FSG).