The death of a family member or loved one can be an extremely difficult time in your life and can leave you physically and emotionally drained. While an insurer cannot help in those instances, Funeral Cover can protect you from being financially drained as well.
A funeral is an expensive exercise and often needs to be arranged in a short period of time. By taking out cover, you can have the necessary funds available in a short period of time.
- What does it cover?
- How much can my family receive?
- Discounts Available
- Who receives the benefit?
- Funeral Insurance vs Life Insurance
- Applying for a policy
- Cooling off period
- Entry and Expiry Ages
- When will my cover end?
- Claiming a Benefit
What does it Cover?
The policy provides a lump sum benefit to help pay for the cost of funeral or other related expenses upon your death. The policies we compare generally provide worldwide cover 24 hours a day, 7 days a week.
How much can my family receive?
A funeral insurance lump sum benefit can be anywhere from $5,000 to $30,000, depending on your insurer, you individual requirements and your level of affordability. Depending on your insurer, you can generally increase your level of cover in $1,000 increments.
Select insurers offer the first 3 months premium free, allowing you to pay nothing for the first three months and giving you greater affordability.
You may also be able to receive a discount on your premiums if two or more people at the same residential address sign up for a policy.
Who receives the benefit?
Your nominated beneficiaries will receive the benefit. Your beneficiaries can be a family member, friend or a combination of both. If the cost of your funeral is being paid for by a number of people, you can generally nominate up to four beneficiaries to receive your benefit. You can also choose the percentage of your benefit each beneficiary or policy owner will receive.
Funeral Insurance vs. Life Insurance
Generally, life insurance offers more comprehensive cover than a Funeral Insurance Policy. However as life insurance may not be suitable for everyone, Funeral Cover may be more appropriate for your circumstances.
If you are unsure of the difference and advantages and disadvantages of both policies, speak to your financial adviser or contact us today.
Applying for a Policy
Applying for policy is simple, quick and can be done over the phone or by completing an application form. You are generally not required to go through a medical examination or provide your medical history to take out cover. It is also generally guaranteed for all Australians aged 17 – 80.
Cooling Off Period
Funeral Cover generally come with a cooling off period, which is the period in which you can cancel your policy and any premiums paid will be fully refunded. The cooling off period will differ between insurers but may be between 30 – 45 days.
Entry and Expiry Ages
The entry age cover will differ between providers. The two policies we provide offer entry ages of 17 – 80 and 45 – 70 respectively.
The policies we offer do not have expiry ages, meaning your policy will be available until you pass away as long your keep paying your premiums until you pass away or your premiums becomes capped.
It is always important to consult the relevant PDS when it comes to exclusions as they are always policy specific.
A couple of exclusions which may exist include:
- Exclusions on death not caused by an accident in the first 12 or 24 months of your policy depending on your provider.
- Death caused by self-inflicted injury or suicide in first 12 or 24 months
Please note that any increases to your benefit outside of indexation increases may be subject to the same exclusions. For example, if you increase your level of cover from $20,000 to $25,000, the additional $5,000 will only be payable for suicide after the end of the exclusion period.
Please consult the PDS for more information or speak to your financial adviser.
When will my cover end?
While there is no expiry age on the policies we offer, cover will generally end if the following occurs:
- Payment of your benefit
- Cancellation of the policy
- Non-payment of premiums within the required time frame
- Death of the insured where the benefit is not payable
Claiming a benefit
To claim a benefit you will generally be required to produce:
- A death certificate of the insured deceased person (not always)
- Provide the original policy document
- A fully completed claim form