Prepaid funeral plans versus 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 $15,000¹ and many people do not have that kind of money immediately available.

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 instalments 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, generally with no extra payout for accidental death.  

The main disadvantage of a pre-paid funeral plan, however, is that if you die before the funeral is paid off and you are paying in instalments, then not all costs may 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 from an accident, and after 12 months if you pass away from other causes.

And with Insuranceline’s Value Promise, after you've held the cover for 12 months, when the time comes to claim, your beneficiary/ies will receive the Funeral Insurance Benefit – plus any applicable Bonus Cover – or the total premiums paid for Funeral Insurance, whichever is higher. You’ll know exactly how much money your beneficiaries will receive and when they should expect to receive it.

Insuranceline is also the longest standing provider of funeral insurance in Australia‡.

Now there are even more reasons to choose Insuranceline:

  • Insuranceline Bonus Cover gives you 10% more Funeral Insurance cover at no extra cost after 5 years.  Changes you make to the cover will change the Bonus Cover amount.~
  • 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 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 Funeral Insurance premiums paid.+
  • The cost of cover does not increase because you age. With Insuranceline, as long as you don’t make any changes to your cover, your premium won’t go up just because you get older.**
  • The Early Payout Option - After you turn 85 you can choose to 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 and is designed to provide extra financial support
  • Compare ways to pay for your funeral

Peace of mind for you and your family

Funeral insurance is a way to take care of your family by helping take 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 (depending on your age and cover amount selected).

With funeral insurance, keep your premiums up to date and we'll: 

  • Cover you for life and pay out fast when the money’s needed most – 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.