Prepaid Funeral Plans vs Funeral Insurance

A funeral can cost up to $15,000¹, so being financially prepared for your funeral spares your loved ones from an expense they might not be able to afford. 

Prepaid funeral plans and funeral insurance can both give you the freedom to choose your own funeral and help relieve the financial burden for those left behind. 

But there are differences to be aware of before you make your choice:

Prepaid funeral plan

With a prepaid funeral plan you choose exactly what kind of funeral you want. Then you pay for it either upfront or by instalments over a fixed period of time. Funeral directors and some insurance providers offer prepaid funeral plans. 
Generally, a prepaid funeral plan only covers your funeral costs with no extra payout for accidental death.  

If you die before you’ve finished paying off the funeral plan then your loved ones may still be responsible for the remaining cost. 

Funeral insurance

Like other forms of insurance, you pay regular premiums for your funeral insurance based on the cover amount you select. 

Insuranceline is the longest-standing provider of funeral insurance in Australia, and there are many benefits to Insuranceline funeral insurance cover:

  • You’re covered immediately if you die from an accident, and after 12 months if you pass away from other causes. Your family could access up to $15,000 within 24 hours of an approved claim.
  • 10% more funeral insurance cover at no extra cost after 5 years thanks to Insuranceline Bonus Cover.
  • 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 total funeral insurance premiums paid – whichever is greater.
  • If you’re 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 funeral insurance premiums paid.+
  • Premiums don’t go up just because you get older.*
  • Early Payout Option - after you turn 85 you can cash in your policy and receive 120% of the average funeral insurance cover amount, without Bonus Cover.# 
  • An unexpected, accidental death can place extra financial strain on a family. Accidental Death Cover can be added to your funeral insurance benefit to provide extra financial support.

Compare ways to pay for your funeral

An affordable solution

Insuranceline funeral insurance can be yours for as little as a few dollars a week (depending on your age and cover amount selected).

Keep your premiums up to date and we'll: 

  • Cover you for life and pay out fast – 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.



¹ Source: Costs are estimates only and vary depending on state, and the services and features chosen.

+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. 

**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, Extra Accidental Death and Accidental Injury Cover. The Early Payout Option may affect entitlements to the age pension and other government benefits.