Funeral Insurance and Prepaid Funeral plans can give you the freedom to choose your own funeral and help relieve financial burden for your family. But what are the differences you should look out for with each one?
Death can be an uncomfortable topic, but creating a clear plan can help you and your family manage the whole funeral process, and the finances that go with it.
A funeral in Australia can cost up to $15,000. Many Australians don’t have that sort of money immediately available so they look to Funeral Insurance or Prepaid Funerals to help pay for the funeral.
What is a prepaid funeral?
A Prepaid Funeral plan means you pay up front for the type of funeral you want to have. It means you can plan ahead and choose everything from the celebrant to the flowers.
However, if you die before you’ve finished paying off the funeral plan then you may not be covered.
What is funeral insurance?
Funeral Insurance can give you the freedom to choose your own funeral. As with any other insurances, you pay regular premiums based on the cover amount you select. With Insuranceline’s Funeral Insurance, premiums are guaranteed to never go up.
If you have Funeral Insurance with Insuranceline your family can get up to $15,000 within 24 hours of an approved claim to help plan your funeral. It can give you the peace of mind, knowing the cost of your funeral will be covered for your loved ones.
Prepaid funeral plans vs funeral insurance
A Prepaid Funeral can be a good option if you know exactly what you want for every aspect of your funeral, have the funds available to pay for the funeral costs and want control over what happens at your funeral. However, one downfall of a Prepaid Funeral is that it may not pay for your full funeral if you die without having paid off all the costs.
Funeral insurance comes with a lot of benefits, many of which can help with the unexpected:
- Fast payouts. Most funerals take place within a week of the death and Insuranceline usually provide the money within 24 hours of a completed claim.
- Cover even when you stop paying premiums. From your 90th birthday onwards, Insuranceline gives you free cover so you have no more premiums to pay for the rest of your life!
- Lifetime cover even if you cancel your policy (this feature is available for an extra cost). If you've held your Insuranceline policy and paid premiums for more than 5 years, your loved ones will still be able to claim a proportion of the cover amount you once held — even if you’ve cancelled your policy.
- Fixed premiums. Your premiums will never go up (unless you change your policy) and with our Level Advantage Funeral Insurance, you’ll never pay more into your Funeral Insurance than what you get back.
- Immediate cover once your policy starts. You are covered for the full sum insured once your policy starts. Once you’ve held the cover for 1 year, you are covered for all types of death as long as you continue to pay the premiums.
One of the biggest differences between a Prepaid Funeral and Funeral Insurance is the bonus pay out for accidental death cover. If you die due to an accidental injury, Insuranceline pays out double the insured amount.
To see how much a Funeral Insurance policy from Insuranceline could cost you, get a free quote online or speak to one of our insurance experts on 13 77 87.
Product issued by TAL Life Limited ABN 70 050 109 450 AFSL 237848.