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Planning • 5 min read

What is Funeral Insurance and how does it work?

Interested in Funeral Insurance but don't know much about it? Read more to find out about Funeral Insurance and how it works.

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.


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.

++ 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.

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.