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Difference between funeral insurance, funeral plans, and funeral bonds

When you compare funeral insurance with a pre-paid funeral plan and funeral bonds, you may find that funeral insurance offers more benefits and greater peace of mind.

What is funeral insurance?

Funeral insurance gives your loved ones an immediate lump sum benefit when you pass away. You can choose the amount they receive and, rather than having to make a large upfront financial investment, you can simply pay a fortnightly or monthly premium over time.

Read more about funeral insurance.

What is a pre-paid funeral plan?

A pre-paid funeral plan requires you to plan and pay for your funeral upfront before you pass away. Even if your funeral director allows you to pay in instalments, there is likely to be a large, non-refundable deposit required upfront.

A pre-paid funeral plan gives you full control over the details of your funeral service, and the funeral costs are likely to be fixed at current prices, which won’t rise with inflation or market fluctuations.

62% of Australian Seniors plan to be cremated instead of buried when they pass away.1

What is a funeral bond?

Funeral bonds are an investment product that allow you to put money aside for your funeral. In a way these bonds are an enforced savings account, as the funds from the bonds can only be withdrawn once you have passed and are to be used to pay for your funeral.2

Why choose funeral insurance over a pre-paid funeral plan?

Full cover, whatever you’ve paid

With Seniors Funeral Insurance, you’re immediately covered for your chosen benefit, from $3,000 up to $15,000, no matter how much or how little you’ve paid in premiums.a This is in contrast to a pre-paid plan, where you may be required to pay upfront and in full.

With the average cost of a funeral in Australia being $4,000 to $15,0002, this can be a welcome relief for your family at a time when they need financial support most.

No decisions to make

Apart from selecting your cover amount and nominating your beneficiaries, there are no major decisions to make when you take out funeral cover. You can leave all the details of your funeral service in your will, without having to finalise arrangements and pay suppliers upfront.

Flexible payout

A funeral insurance payout can be used by your family for whatever is needed at the time. This could include putting your financial affairs in order and settling your outstanding bills or personal debts.

This flexibility is not possible with a pre-paid funeral plan, which locks your money away until you die and cannot be used for any other purpose than your funeral.

Easy application

Organising a pre-paid funeral plan can be complex and time consuming. It requires you to make a number of decisions regarding your funeral service, and to commit to suppliers upfront.

With Seniors Funeral Insurance, on the other hand, the process is easy. Just pick up the phone and you’ll be covered in minutes, as if you’re an Australian resident between the ages of 18 and 79, you’re guaranteed cover with no medical or blood tests required.

Freedom of choice

Australian Seniors gives you the freedom to choose, with your choice of cover from $3,000 to $15,000, which is paid in full when you pass away regardless of the premiums you’ve paid.a

Read more about why funeral insurance over other forms of funeral cover.

How Australian Seniors can help

Australian Seniors Funeral Insurance pays a lump sum to your family upon your death, which they can spend as they see fit.

Benefits of Seniors Funeral Insurance include:

  • Choose cover that suits your needs from $3,000 up to $15,000
  • With our Top Cover, when you claim, receive your covered amount, or all of the premiums you’ve paid in – whichever is greaterb
  • With our Top Cover, you have the choice to cancel cover when you turn 85 to receive an Early Cash Back payment of 150% of your benefitc
  • No forms, medical exams or blood tests required to apply
  • Guaranteed acceptance for Australian residents aged 18–79
  • Premiums that reduce by 5% every 5 years that you hold your policy
  • Triple your benefit amount if your death is due to an accident (up to $45,000)
  • 30 day cooling-off period with money back guarantee.


  1. The Australian Seniors Series: The Circle of Life SurveyAustralian Seniors Insurance Agency
  2. Paying for your funeralAustralian Securities and Investment Commission

Things to know

  1. Cover for Accidental Death only in the first 12 months.
  2. This is subject to you keeping your policy in force without changing your level of cover. There is no refund of premiums after the cooling off period. If your policy is cancelled prior to age 85, no benefit is payable.
  3. If you choose the Early Cash Back option, you will no longer be eligible to claim and you may receive less than the total premiums you’ve paid into your policy to date.
  4. Based on a single plan, providing a $3,000 benefit for a person aged 60.

This is general information only and does not take into account your personal objectives, financial situation or needs. You should consider the relevant PDS available on this website prior to purchasing.