Funeral Advancement

Funeral Advancement is generally a built-in feature with your life insurance policy and pays an advanced benefit to your beneficiaries if you pass away.

Also known as Advance Assistance Benefit or Funeral Benefit, it is designed to help make money available following the life insured’s death, for immediate funeral expenses and other associated costs.

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How does it work?

Funeral Advancement is an advance on your life insurance benefit and is not paid on top of your policy.

The benefit will generally be paid to your beneficiaries 10 – 14 days once the following have been submitted to your insurer:

  • Death certificate
  • Treating doctors report
  • Claim form
  • Any other evidence or forms requested

Generally the full life insurance benefit will take longer to pay out and can take a number of weeks depending on the circumstances.

Please note that life insurance companies may differ on what documentation they need in order for you to claim the benefit and how long the process will take.

Why should I use the Funeral Advancement Benefit?

The benefit is designed to help cover any immediate funeral costs and is put in place so your beneficiaries can receive some money as soon as possible.

Generally, once the relevant documents are submitted to your life insurance company, the funeral advancement benefit will be paid in a much shorter period of time.

Having this benefit built-in can reduce the need to have a separate funeral insurance policy which will only cost you more.

How much will I receive?

The amount you receive will differ depending on your insurer. Generally the amount you receive will be either a certain percentage of your sum insured or it may be a set cash amount and may range between $15,000 and $20,000.

Other insurers may pay you the lesser of the two amounts such as the lesser of $20,000 and 25 per cent of the amount insured.

When comparing quotes from different insurers, you should ask one of our specialists how much is payable.

How long does it take for a funeral insurance claim to be paid?

During the claims process you will be required to provide documentation and evidence such as a death certificate as proof that the life insured has died. This will need to be submitted along with a claim form to your insurer.

Once all necessary information has been received by your insurer, the funeral insurance claim will be assessed. This can take up to 5 working days before you may receive the proceeds. However please note that this process cannot start until all relevant documentation is received.

Published: March 7, 2017

Ask an Expert?


  • John |

    When is the funeral advancement benefit paid following the Insurance Company being notified of the life insured passing away?

      Brett Lenertz |

      Thanks for your question John. The funeral advancement benefit is generally paid within 2 weeks of submitting the completed claim forms back to the Life Insurance company. It is imperative that the forms are returned quickly in order to expedite this payment especially if these funds are required for the associated funeral costs. It is important to note that payment of the funeral advancement benefit does not automatically imply that the Life Insurance benefit will be paid as that will proceed through the normal claims process and checking procedures before the benefit is paid.