A guide to understanding funeral insurance

Funeral insurance is a lump sum of money paid to your family to cover your funeral costs and any other expenses when you pass away.* This is an important way to plan ahead as it ensures your family won’t be left with the added financial stress during an already difficult time.

A funeral in 2019 can cost anywhere from $4,000 upwards, with some costing as much as $15,000. That can be difficult for your loved ones to afford should the worst happen, which is why funeral insurance is essential for those concerned about their family’s finances when they’re gone.

How funeral insurance works

Funeral insurance works much the same way as other insurance policies – you pay a premium based on your level of cover and age. Most funeral insurance policies range between $3,000 and $15,000 cover.

Any Australian resident aged 18–79 can apply for Seniors Funeral Insurance, and you can choose between a single plan for yourself, or a joint plan to include your spouse or partner. You may also have the option to insure your children.

This money is paid out to your nominated beneficiaries shortly after you pass away so they can use it to carry out your funeral or any other final wishes. However, the processing time for claims varies depending on your provider. With Seniors Funeral Insurance, your family will be paid out as soon as the required documentation is filed – usually within one business day.

What to look out for

Most funeral insurance policy premiums increase with age, which can make it difficult to keep up with your payments as you get older.

However, Seniors Funeral Insurance Top Cover guarantees that not only will your premiums never increase, they’ll actually reduce by 5% for every five years you hold your policy, unless you choose to change your cover. That means you won’t have to worry about the long-term affordability of your policy or potentially losing out on your benefit.

Another consideration to look out for is whether a provider will let you cancel your policy once you reach a certain age in exchange for an early payout. This can be useful if you decide to plan your funeral yourself or if your financial situation changes. That’s why Seniors Funeral Insurance Top Cover also comes with an Early Cash Back Payment, which means you can choose to cancel your cover and receive 150% of your funeral insurance benefit once you turn 85.**

You can read more about comparing policies on our funeral insurance comparison guide.

Why take out funeral insurance?

In most instances, your Next of Kin (spouse, child, parent, legal partner or sibling) is responsible for arranging and paying for your funeral, and the cost of a funeral will vary depending on selections made by the family.

Funeral directors usually ask for an up-front deposit, with the full fee due immediately after the funeral. This can cause pressure on the family. Funeral insurance takes this pressure off, protecting your family from financial stress.

What are some of the funeral costs covered?

The good news with Seniors Funeral Insurance is that it offers a lump sum payment of up to $15,000. What your family spends this money on is up to them, meaning your funeral can be arranged to suit your specific requirements.

Here’s an itemised breakdown of common funeral costs which will need to be considered.

Item DescriptionCost
Service feefrom $2,000
Flowersfrom $100
Transport of mournersfrom $330 per car
Minister and organist feesfrom $500
Removal of body$300
Preservation of body$210
Burial (basic service)from $8,048
Coffin/casketfrom $800 to $10,000+
Cemetery/grave fees (includes opening and may include plaque) single or doublefrom $3,500+
Cremation (basic service)from $3,108
Disposal of ashes via wall, niche, urn, rose gardenfrom $1,200

To find out how much your funeral might cost, try our handy funeral cost calculator.

Could your loved ones afford the funeral they would want for you? By choosing the right type of insurance, you can help them meet their immediate financial needs, so paying for a funeral becomes one less thing to worry about.

When considering funeral insurance, talk to your family about what you would like from your funeral such as cremation or burial, casket choice, flowers and service.

To find out more about how Australian Seniors provides peace of mind for you and your loved ones, call our friendly, Australian-based customer service team on 1300 078 596 or request a quick quote now.

Funeral Cover from $3,000 up to $15,000*


* Cover for Accidental Death only in the first 12 months.

** If you choose the Early Cash Back Payment 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.