What is Funeral Insurance and how does it work?

Funerals are particularly costly events that can cause financial strain for your family. Funeral insurance can help you to deal with this cost - but how exactly does it work?

What is Funeral Insurance?

The cost of funerals these days can run into the thousands of dollars, but as with anything, it depends on the choices you make and the protections you put in place.  

According to the government’s Moneysmart website, funerals can cost from $4,000 for a simple cremation, up to $15,000 for an elaborate burial. Whatever you decide, your funeral is a financial commitment for your family once you have gone.  

While they will want to create the best send-off possible for you, they may be worried about the financial restrictions.  

With Funeral Insurance, you pay a regular premium for your funeral insurance policy. When you die your family gets a lump sum, usually paid within 24 hours of receiving the valid claim.  

What does Funeral Insurance cover?

Funeral Insurance can be used to cover all of the costs typically associated with a funeral – from the ceremonial requirements like a burial plot, celebrant or undertaker service, to the added extras like flowers or catering that mean your loved ones are able to give you a proper send-off. There are also other costs you may not have thought of, including cars, cremation certificates and embalming fees. If your family would need to travel from afar to attend the funeral, insurance could help to cover their travel expenses. 

How much does funeral insurance cost?

Your premiums will depend on how much you would like to leave your loved ones for the funeral. Insuranceline offers cover from $3,000 - $15,000, and will provide a bonus 10% additional insurance cover once you have held the policy for five years, helping those left behind to cover any unexpected expenses. Consider what kind of funeral you would like to help decide what level of cover would suit your family.  

Does Life Insurance cover funeral costs?

The money that your loved ones receive from life insurance can be used to pay for funeral costs. If you are not eligible for life insurance due to age or other factors, funeral insurance could help to cover costs when your family needs it most. Find out more about the difference between life insurance and funeral cover. 

Taking out Funeral Insurance for your parents

Discussing the end of life can make for a difficult conversation, but if you are concerned about your ability to cover the cost of your parents’ funerals, then talking about funeral insurance could be helpful. One way of starting the conversation could be to ask them what kind of funeral they would like, so you can be sure you can organise something appropriate. You can take out funeral insurance on your parents’ behalf, and since you own the policy, you will be the beneficiary. Find out more about funeral insurance for family members

How to get Funeral Insurance with Insuranceline?

It’s simple and straightforward: 

  • Work out how much money is needed for your funeral. Get an approximate idea of funeral costs then ring around for quotes 
  • Get an online Funeral Insurance quote now or call us on 13 77 87 and we'll talk you through your options and help you find an affordable premium. No medicals, no health questions
  • When the time comes, we work hard to ensure a fast, smooth payout so your family can pay upfront for your funeral expenses 
  • We are Australia’s longest standing funeral insurance provider
  • Our Funeral Insurance premiums don’t’ go up every year just because you’re getting older** 
  • You’re covered for accidental death from day one of the policy, and after 12 months, for all causes of death 
  • After holding the policy for 5 years we add a bonus 10% more Funeral Insurance cover at no extra cost for being a loyal customer~ It is possible if you hold a policy for many years that the premiums paid over time may equal or exceed the amount of your cover. But with Insuranceline’s Value Promise, 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.+ 
  • After the Life Insured’s 85th birthday you can also cash in their benefit for 120% of their average Funeral Insurance cover Amount.#

Learn more about how funeral insurance can help protect your loved ones into the future, or get an online quote.