No one likes to talk about death. But, have you ever wondered: in the event of a sudden death will your family, besides feeling immense grief, also worry about the financial side of the final rites? They probably will. One way to alleviate these worries is called Funeral Insurance. Funeral insurance plans for you to leave in peace without burdening your family or loved ones, with the costs of your funeral.
Funeral insurance, also called burial insurance or funeral cover, protects your family in the event of your death, removing or contributing to the financial burden of your funeral expenses during an already very trying time of their lives. Funeral cover not only allows you to plan ahead and put your affairs in order, but also to aid you to receive the funeral service that you and your family want for you, without any added stress or worries.
Applying for Funeral Insurance
One good thing about Funeral Insurance is that it is generally guaranteed for all Australian residents that are aged between 17 and 80. It is also possible to apply on behalf of a spouse or a relative, besides getting the policy for yourself.
Benefits you receive when you get your funeral insurance policy from Life Insurance Direct
- First of all, select insurers enable us to give the first three months free. Yes, you pay nothing for first three months.
- Then, if you are two or more people living in the same house and applying for Funeral Insurance cover, you get a further 10% discount on your premiums, as offered by select insurers.
- We also compare a lot of Australian policies to find you very competitive options
- How much you insure yourself (or a family member) is up to you. Generally the minimum amount is $5,000 which can keep on increasing by $1000 up to $30,000, which is the maximum sum insured.
- Once you reach the age 90, your premiums will be frozen or capped and will not increase and, you are still insured to receive the full benefit.
- In case of an accidental death in the first twelve months, you get your full benefit or insured sum.
- In case of an accidental death after the first twelve months, you get up to 3 times the sum insured.
- Absolutely no medical tests or medical questions are required
- You can change your mind! If within the first 45 days, you want to change your policy or if you decide to cancel your cover altogether, you have the full freedom to do so.
- To help keep up with inflation, your benefit amount, with select few insurers, will automatically increase by 5% on each anniversary of your policy commencement date.
- Freedom in Paying the Premiums: Now, you can choose how you’d like to pay those premiums. Depending on your cash flow, you payment options start at paying fortnightly, go on to paying monthly or if it suits you, you can pay yearly. The good thing is you pay the exact same amount whether you choose to pay every fortnight, every month or once a year!
Things to note
While you get paid the full benefit of your policy if an accidental death, occurs in the first twelve months, you get back the premiums you paid with select insurers. This is provided the death (in the first twelve month) is not due to an accident, self-inflicted injury or a suicide.
Who receives the funeral benefit payment?
Ideally, the person that you nominate is the person that arranges the funeral. You may want to nominate a family member, a loved one or a dear friend. You can choose to have up to four beneficiaries and choose the percentage of the benefit payment each beneficiary will receive, as payment of your funeral cover. You may want to nominate your beneficiaries when you apply for the funeral cover or you may choose to nominate them at a later date. It’s up to you!
So how does one determine the funeral costs?
As you know the benefit is adjusted in order to keep up with ongoing inflation. Still, it’s a good idea to take into consideration the future costs of a funeral. While you may not have an exact estimate, the following may give you a fair idea:
- Costs of burial plots
- Costs of cremation
- Funeral home costs that may increase in time.
- Funeral service
- The wake service
- Obituaries and advertising in newspapers
As time goes by, the costs of everything, including funerals, always seem to be going up. Thus, at the event of death, whether it’s after a few years or decades, the cost may go up considerably.
Another good idea is to have a funeral plan. This is to make sure that the costs don’t get out of hand. Funerals are not the time when your loved ones will have their wits about them. A funeral plan is highly advisable.
The funeral plan can help you make a comprehensive list of the funeral process.
Whether you choose to be buried or cremated, what plot you choose, whether you want it to be an elaborate affair or a simple one, what casket would you like etc.
Claiming the Benefit
Claim a funeral insurance cover is very simple. Generally, all you require are the following:
- The death certificate of the deceased insured person
- The policy document that you signed originally along with the policy schedule
- A fully completed claim form
At Life Insurance Direct we believe that it should not cost you the world to get insured. We also believe that Life Insurance has to be as simple as A, B, C. Remember no question is too big or small, just call. Our advice and services are absolutely free. Now, stop worrying and start living!