What is funeral insurance? How does it work?
Simply put, funeral insurance is a lump sum of money that is paid to your family members to cover for the cost of your funeral in the event of your death. Once you think about the impact your death can have on your loved ones, the cost of your funeral is certainly not the first thing which comes to mind, but it certainly does affect your family, especially since they are reeling from the shock of having lost you.
Funeral insurance works more or less like all other insurance policies – you select the amount you’ll need for covering your funeral (for most final expense insurance companies, the cheapest funeral insurance normally starts at $5K, and the amount goes up to $30K), and then pay the insurer a monthly / annual premium. If you pass away while the policy is active, your nominated beneficiaries receive the benefit amount so they can easily pay for arranging your funeral.
Why is it a good idea to have?
The obvious reason is that it is something that you can ensure is taken care of for your loved ones as they struggle to cope with their loss, and will certainly ease their pain.
When you take into account all the costs associated with a funeral – the venue, the casket, the transport, flowers, wake, priest and newspaper listings – you’ll realise that organising a funeral isn’t all that cheap – it can go as much as $10,000, which is a hefty amount for many families.
Here are the funeral insurance reviews of the most popular providers in Australia so you’ve got a good idea of what’s out there in the market:
Apia funeral insurance
Apia insurance funeral plans offer to bring peace of mind to you knowing that your family is all setup to take care of your funeral expenses. Their funeral insurance has been engineered to safeguard your loved ones against the potential burden of having to pay for the arrangement of your funeral. By signing up for the new Apia Funeral Insurance, you get to enjoy added benefits, that include flexibility in the cover amount, payment options and extra value, while being relaxed that your family will have easy access to cash when the time comes.
- Choose between a cover amount ranging between $5,000 and $15,000 for leveled premiums, or as much as $30,000 for stepped premiums.
- Cover arrangements are easy and take mere minutes.
- No medical exams or complex forms are required.
Why go for Apia?
The all new Apia Funeral Insurance now brings added benefits:
- Apia Funeral Insurance comes with a value promise – you don’t have to stress about paying more premium than what you’ll get as a benefit. The value promise ensures that at the time of the claim, your loved ones will not get less than what you paid for.
- The Early Payment Benefit: This benefit lets Apia pay you the insured amount early on in certain cases.
- Choice of payment options: When you select Apia to cover for your funeral, you can choose between level or stepped premiums. If you go for stepped premiums, you premiums are calculated as per your increasing age. This means you’ll be paying less initially and the rate will increase with each year. If you go for level premiums, you’ll have to pay a bit more from the get go, but the premiums won’t increase as you age.
Here are the features of Apia’s funeral insurance product:
- Choose an amount ranging from $5K to $30K to cover for the expenses of your funeral or other final expenses.
- You will be automatically accepted if your age is between 45 and 75 years.
- You are given worldwide protection, 24 hours a day, throughout the year.
- Your beneficiaries will get the amount normally within 24 hours of having their claim approved.
- 10% cashback on premiums paid after every 3 years.
- 20% family discount for partners taking out cover individually.
- 30 day cooling off (trial) period.
- You won’t have to pay any premium after having surpassed 85 years of age. Your funeral will be insured with no added cost to you.
Real insurance funeral cover
Real Insurance funeral cover comes with a triple guarantee for you:
- Your premium rate will never escalate.
- Your premium will go down by 5% after every five years that you hold to the policy without altering its benefit amount.
- The benefit your nominated beneficiaries receive won’t be lower than the amount you’ve paid in premiums, so all claims will be entitled to either the total you’ve paid in premiums or the selected Benefit Amount, whichever is larger.
Real funeral insurance Australia is designed to ease things for your loved ones who are dealing with your loss. Your funeral expenses will be taken care off, as will any outstanding dues like credit card debts, personal loans and utility charges that were left behind after your demise.
While the Real Insurance Funeral Plan is there to cover for the expenses of your funeral and other final expenses, your nominated beneficiaries are free to use it as they see fit. And, as mentioned before, Real Insurance guarantees that your family will never receive less than the amount you’ve given in premiums.
Here are the features of this insurance policy:
- You can apply through a single phone call without any blood / medical tests.
- The cover can be kept for life.
- You can pay every two weeks or monthly, without any additional charges.
- You can choose the level of cover to keep premiums manageable.
- Select from a number of optional covers to enhance your protection.
- You’ll be refunded 10% of your premiums paid within the first 12 months thanks to The Real Reward™.
- A personal specialist present in Australia will be assigned to handle your claims.
- Your policy has the backing of the third biggest insurer in the world.
Insurance Line Funeral Insurance claims to be the cover you can count on, where premiums never increase. They promise to provide your family with bankable cover for your funeral expenses to make things for them in their time of loss.
- You have flexible cover, being able to choose an amount up to $15K.
- Swift payment of benefit to your family members once the claim is processed – normally within 24 hours.
- Ease of application – If you’re an Australian resident younger than 80, you can apply for funeral insurance over the phone – it doesn’t take more than a few minutes! Plus, you won’t be bother with medical / health related questions.
- Guaranteed premium levels which are fixed unless you alter the benefit amount. After you have reached the premium cap, you won’t have to pay any more and your cover will carry on for free.
- Accidental death coverage – The policy has you covered in this regard from day one. In fact, as long as you keep paying your premiums, your beneficiaries will get double the amount of chosen funeral cover if your death is a result of physical injury due to an accident. Your loved ones will have extra financial assistance at such a trying time.
- Save as much as 25% over the lifetime of the policy.
- The sooner you buy the insurance, the lower your premiums will remain.
- You’re covered for after turning 90 – from that point on, your insurance will carry on without any further premiums.
- The claims process is straightforward – when the worst comes to pass, Insurance Line keeps the procedure as simple as possible. Once the beneficiary makes the claim, a claims manager is assigned to oversee and assess it, and help your loved ones work out all the details of the process.
- The policy comes with a thirty day money back guarantee.
- If you go for annually paid premiums, you get to enjoy 12 months while paying for only 11.
You can also choose from the following optional extras:
- Extra accidental injury cover: this option protects you and your loved ones in case you suffer from a common injury which the policy covers.
- Extra accidental death cover: this provides your loved ones with added financial support if your demise is a result of an accident.
- Level advantage: this ensures that your premiums never exceed your cover amount over the lifetime of the policy.
- Family discounts: you get a 15% discount for each extra adult family member covered by the policy (however, these discounts are inapplicable to options such as Extra Accidental Injury Cover and Extra Accidental Death Cover).
- Lifetime protection promise: if this option is selection, as soon as you’ve held on to the policy for 5 years, even if you cease paying premiums or cancel the policy altogether, your loved one will get a partial payout.
Australian Seniors Funeral Insurance
No-one wishes to leave behind the burden of a costly funeral on their family at the time of their passing. By buying a funeral insurance plan, you’ll be ensuring that your loved ones are not left with the high funeral costs and can settle small debts / outstanding dues which you may have left behind without having to sell your other assets.
Australian Seniors insurance funeral plan is designed with the core belief that funeral cover charges shouldn’t increase as you age – rather, they should go down. The Seniors Insurance Plus cover promises to provide Australian seniors with a better option when it comes to safeguarding their loved ones against unexpected costs.
Australian Seniors insurance company makes the following promise to you when you buy their insurance:
- That your premiums will never escalate, unless you alter your cover amount.
- That your premiums will lower by 5% every five years you’ve held the cover policy.
- That the benefit your family member get will never be lower than the amount you’ve paid in premiums, so they’ll get either the benefit amount you’ve chosen, or the amount you’ve paid in premiums, whichever is larger.
But there is more than that:
- Your beneficiaries will get a lump amount, as much as $15K, at the time of your passing to spend as they see fit – note that accidental death coverage is only applicable for the first 12 months.
- Accidental serious injury insurance is incorporated into the policy which will give the beneficiaries a lump sum benefit that is thrice the amount you’ve chosen.
- Triple benefit for accidental death – you’ll get three times the benefit amount if you die due to an accident – this can be as much as $45,000.
- Acceptance guarantee – if you’re an Australian resident aged between 18 and 79, you’ll get guaranteed cover.
- Cover can be taken out easily – it takes no more than a few minutes on the phone!
- You won’t have to suffer any questionnaires / tests regarding your medical condition.
- Quick payout to the family – claims will be paid within one business day so your family has the money when it is needed most.
- Optional children’s insurance lets you cover for your child in the event of a listed injury / ailment. This cash will ease the financial burden of paying for medical expenses.
- You’re covered for free after you have crossed the 90 year mark – you won’t have to pay premiums anymore and your cover will continue so you enjoy all the benefits with no further expenses.
However, remember that you won’t be paid anything if you cancel your cover or the cover expires.
Other good funeral insurance options
Besides the ones reviewed above, there are other options you can go for. These include NRMA funeral insurance, Tower funeral insurance, Bupa funeral insurance, Choosi funeral insurance, Westpac funeral insurance, Funeral advantage insurance etc.
Remember that there is no universal best funeral plan – it all depends on your personal requirements and preferences.