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Have you considered funeral insurance?

Have you considered funeral insurance?

Nobody wants to leave their loved ones with a large funeral bill. With the average cost of a funeral between $4,000 and $15,0001, it can become a financial strain for many.

Funeral insurance offers peace of mind knowing your family is protected from this expense. At an already difficult time for them, your funeral insurance payout can be a welcome comfort and helping hand to your family when you pass away.

These are the need-to-know details about funeral insurance to see if it’s the right helping hand for you and your family.

Of those who have made preparations for their funeral, 74% have chosen their interment preference, 43% have chosen the songs to be played at their funeral, but almost no one (2%) has made provisions for how it will all be paid for!

Circle of Life Survey

What is funeral insurance?

Funeral insurance helps protect your loved ones from high funeral costs by providing a lump sum payout to them when you pass away. It isn’t locked into a funeral company or director, so your family are free to spend the money where it’s needed most.

Your family can use your funeral insurance payout to cover your funeral costs or put towards any expenses they face such as unpaid bills or loans you may have left behind.

Funeral insurance vs. savings account

Funeral insurance can be a helpful option for those who struggle to save. Unlike a savings account, where your loved ones only have access to what you’ve managed to put aside, funeral insurance will pay your family the full amount you’re insured for regardless of how much you’ve paid into your policy via premiums.

In the event you pass away, it may take your family a while to access money in your bank accounts, whereas some funeral insurance providers such as Australian Seniors Insurance Agency can payout your benefit within one business day from the time completed documentation is received.

How it works

Getting cover is easy. There are generally no medicals or blood tests required if you buy funeral insurance through a direct insurer – you can simply apply over the phone in minutes or request a quick quote online. If you’re an Australian resident aged 18–79, you’re guaranteed cover with Australian Seniors Insurance Agency.

You’ll choose a benefit payout amount, and pay either a fortnightly or monthly premium. When you pass away, your chosen beneficiary will receive your payout to use how they choose, after following your provider’s claims process.

What to consider when choosing funeral insurance

  • The style of funeral you want. Do you want to be cremated or buried? Are you wanting a traditional service? Consider how much these options cost.
  • The benefit amount you want to receive. Take into account your savings and other insurance policies to make sure you don’t buy cover you don’t need.
  • Quality providers. Industry awards and associations with the industry code of practices are good indicators of reputation when it comes to insurance providers.

What to look out for

  • A policy where premiums don’t get more expensive as you age. This means you can keep your policy no matter how long you live.
  • A policy that protects you against paying more in premiums than your family gets back when you pass away.

Seniors Funeral Insurance Top Cover boasts a Seniors Promise – your premiums will reduce by 5% for every 5 years you hold your policy.

It also offers you choice. When the time comes, your family will receive your covered amount or all of the premiums you’ve paid in for your cover – whichever is greater, or once you turn 85 you can choose to cancel your cover to receive an Early Cash Back payment of 150% of your funeral insurance benefit.*

Find out more today

To give your family the gift of peace of mind after you pass away, simply contact Australian Seniors Insurance Agency on 13 13 43.


Reference

  1. Paying for your funeralASIC’s MoneySmart

Disclaimer

* Cover is for accidental death only in the first 12 months of your policy.

* If your policy is cancelled prior to age 85, no benefit amount is payable. There is no refund of premiums after the cooling off period. 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.

^ Based on a single plan, providing a $3,000 benefit for a person aged 60. Cover for Accidental Death only in the first 12 months.