Compare Funeral Insurance Quotes

Before taking out a new policy to cover your funeral costs or replacing your current policy, it’s important first to comprehensively compare funeral insurance quotes as this provides you with the opportunity to review the benefits, features and costs before making a decision.

Published August 30, 2017

When looking at different policies, start with the amount of cover you need and what you can afford to pay. In Australia funerals can be ridiculously expensive, so you need to make sure that you have enough funds available for your final expenses. However, the more cover you take, the more expensive your premiums will be.

How much does it cost for a funeral in Australia?

In Australia, funerals can range from as little as $4,000 for a basic cremation to as much as $30,000 for a lavish farewell. The cost of your funeral is dependent on the type of funeral you want, the funeral director you use and the amount you want to be spent on the ceremony, flowers and extras

How much does funeral insurance cost?

Your funeral insurance cost is determined by a variety of factors, including your age, sum insured, gender, smoking status and the premium style. Stepped premiums start off cheaper but increase every year due to your age, while level premiums do not go up with your age. Another influential factor is whether you have a capped or a non-capped policy.

To help you select a funeral policy that fits your needs and budget, we’ve listed the top 10 factors that you should consider when completing a funeral insurance comparison.

How to compare funeral insurance quotes

There are many factors that will influence the affordability of your premiums and the benefits provided by a policy. We’ve listed the top 10.

1. The Sum Insured

The amount you want to be covered for. This is usually between $5,000 and $15,000, although select insurers can offer more.

2. Premium type

You generally have a choice between stepped and level premiums.

3. Capped Options

Your real funeral insurance quote will also be dependent on whether your policy is capped or non-capped.

4. Your age when cover begins

The older you are when applying for a policy, the more expensive your premiums will be, because of your increased risk to the insurer that you will die sooner.

5. Payment frequency

Select companies charge less if you pay a yearly premium, as opposed to paying monthly or fortnightly. You can save up to 5% – 8% per year on your premiums, you should ask your insurer if they offer this discount.

6. Smoker status

You’ll generally pay higher premiums if you’re a smoker or have smoked tobacco in the past 12 months.

7. Accidental death period

Generally 12 months, however, it can be as long as 24 months (be weary of 24 month periods). Secondly, if you are replacing an old policy with a new one – you can often get this period waived.

8. Multiple policies

Some insurers will provide you with a discount of up to 10% when you and your spouse take out a policy at the same time with the same insurer.

9. Free periods

Select companies offer new customers the first month free.

10. World wide cover

Check if your policy provides world wide cover 24 hours a day 7 days a week, as you may end up spending time overseas and it’s important to ensure you are covered everywhere.

Old style funeral policies vs. New funeral policies

When comparing funeral insurance to replace your existing policy with better value, it’s important to know whether you have an old style or new style policy.

New style funeral policies refer to those that have implemented some or all of the recommendations made by ASIC regarding improving funeral insurance, while old style policies have not.

Old style policiesNew style policies
Stepped premiums: These premiums start off more affordable, but increase every year, almost quadrupling after age 79.Level premiums: While they are more expensive at the start, level premiums generally do not increase every year due to your age change.
No capped premiums.Capped premiums are offered.
You could pay more in premiums than the total worth of your policy.Capped premiums mean you’ll never pay more for your policy than its worth.

Not all insurers have implemented ASIC’s funeral insurance recommendations, and many still maintain the old style funeral insurance cover. That is why it’s important for you to review your funeral cover, especially if you’ve purchased it before ASIC’s 2015 report.

Average premium by age group before ASIC recommendations had been implemented

Average annual premium by age group

Although new funeral policies generally have more advantages and benefits than old style policies, new style policies might not suit everyone. However, in many cases, they are a vast improvement on the old style policies, which is why you need to know what you do and don’t have before comparing policies.

When replacing an old style policy with a new style policy, for example when replacing one $5,000 funeral policy with another $5,000 policy most insurers will waive the waiting period. Meaning you’ll have full coverage if death is due to natural or accidental causes when you decide to replace your funeral policy. However, make sure to confirm this with them, in writing, before taking out the new policy, replacing your existing one.

Can you have multiple funeral insurance policies?

Yes, generally you can have multiple funeral insurance policies. When you have more than one funeral insurance policy across multiple insurers however it’s important to note many brands use the same underlying insurer. In this circumstance, they may place a limit on how many policies you can hold with them in total.

Thus, you can take out multiple funeral insurance policies, but it’s important that you first make sure the policies are from different insurance companies and that they do not have the same underlying insurer. However, when in doubt, always ask before you make a purchase.

Funerals usually aren’t cheap. To help pay for these future expenses, it makes sense to have some sort of funeral cover in place. When conducting a funeral insurance comparison, you need to think about the amount of cover you need and if you’ll be able to afford the ongoing premiums as you get older.

Before you take out funeral insurance, make sure you know the policy you have chosen offers value for money.

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