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Estate PlanningWhat is Funeral Insurance?
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Funeral insurance provides valuable financial assistance to your family to help pay for your funeral, and other unpaid bills, when you pass away. It helps to ensure your final expenses are taken care of, relieving your loved ones during this emotional time.
How funeral insurance works
Funeral insurance is paid in the form of a lump sum benefit your family can use to pay immediate expenses, such as your funeral service or any outstanding debts you may have.
It works in much the same way as other types of insurance, where you pay a fortnightly or monthly premium calculated according to factors such as your age and the amount of cover you require.
Did you know?
While traditionally burial services were always held in a church, mosque, temple, synagogue, or other religious building, of recent times there has been more of a trend to personalising the service and having the service in parks, by rivers, on beaches, and even at local football ovals.1
What does funeral insurance cover
A funeral in Australia can cost anywhere between $4,000 to $15,0002, which can be a large sum of money for your family to find at short notice. Having funeral insurance means they can provide you with a fitting send-off that honours you and celebrates your life in a manner that suits your individual style.
By choosing a benefit amount that matches your needs, you and your loved ones can take comfort in the knowledge that whatever immediate expenses may arise at the time of your passing, your funeral insurance will cover them.
A funeral insurance lump sum payout can be used to cover things such as:
- your funeral service
- outstanding bills or expenses
- any immediate financial needs your family may have at the time.
What to consider when purchasing funeral cover
When deciding whether funeral insurance is right for you, you should consider the style of funeral you would like and then ask yourself whether your family could afford to pay for it at short notice? In most cases, the answer would be ‘no’ and this is where funeral insurance can help to cover the costs and other related expenses.
Who normally pays for your funeral?
In most cases, the responsibility for arranging and paying for your funeral falls on your next of kin (your spouse, child, parent, legal partner or sibling). So, by taking out funeral insurance, you can take comfort in the knowledge that you are giving them one less thing to worry about when the time comes.
You should consider the following when choosing the benefit amount of your funeral insurance cover:
- the likely cost of your funeral service
- any bills or small unpaid debts that you may leave behind.
Your family might be eligible for a government bereavement payment, depending on your financial circumstances at the time of your passing3, but when compared with the cost of the average funeral, it may fall considerably short of what would be needed.
Funeral expenses will vary depending on your personal wishes and your family’s needs, but at the very least costs can include:
- funeral director fees
- burial fees or cremation fees
- flowers
- catering
- death certificate
- celebrant
- newspaper notices
- casket.
To find a more detailed breakdown of how much a funeral costs, visit our expenses page here. Alternatively, if you would like to determine how much your personal funeral may cost, try our funeral cost calculator.
What if my personal situation changes over time?
The great thing about funeral insurance is that you can often take advantage of many flexible benefits in case your financial situation changes. With Seniors Funeral Insurance, you will receive an extra 25% Bonus Cover when you turn 85, which can be useful if you are worried about additional expenses that might come up. Plus, after this age, you will no longer need to pay any more premiums. This means you can keep your cover in place regardless of your financial situation.
If you’d prefer to end your policy when you turn 85, you can choose to cash out up to 75% of your benefit amount, giving you and your family an upfront payment to use however you wish.
How Australian Seniors can help
Seniors Funeral Insurance will pay a lump sum to your loved ones (up to $15,000) when the times comes, to be spent as needed to cover immediate expenses.
Benefits of choosing Seniors Funeral Insurance
Choose a level of cover that suits you
Seniors Funeral Insurance pays a lump sum to your family from $3,000 up to $15,000 upon your death.
Guaranteed acceptance
If you’re an Australian resident aged 40 to 79, you’re guaranteed acceptance. No medical screening, complicated paperwork or blood tests required.
A quick payout to your family
Claims are usually paid within 1 business day of all completed documentation being received, so you can be sure your family has the financial help they need with little fuss.
Bonus Cover at age 85
Once you turn 85, you’ll receive an extra 25% Bonus Cover on top of your cover amount, so you can enjoy even more peace of mind for the years ahead.
No more premiums after your 85th birthday
From age 85, we’ll stop charging you for your cover so there will be no further premiums to pay.
Cover for terminal illness
Get 100% of your benefit paid if you are diagnosed with a terminal illness, helping you plan your final wishes without financial worries.
Triple benefit for accidental death
From the day your policy starts, your loved ones will receive triple your cover amount if your death is the result of an accident.
More control over your policy
Choose a payment frequency that works for you and your budget and list up to 5 different beneficiaries.
Early Cash Out Option
Once you turn 85, you can choose to end your policy and receive 75% of your cover amount paid to you.
Guaranteed cash payout
When you reach 100 years of age, we’ll end your policy and pay you 125% of your cover amount to spend however you wish.
Things you should know
- Cover is for accidental serious injury and accidental death only in the first 12 months.
- Terminal illness with diagnosis of 12 months or less to live.
- There is no refund of premiums after the cooling off period. The total amount of premiums payable over the life of the policy has the potential to exceed the cover amount.
- If you choose the Early Cash Out Option, you’ll no longer be eligible to claim as this option will cancel your policy.
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Health- Where is an appropriate place to hold a funeral? Councils decide as mourners move away from tradition – ABC News
- Paying for your funeral – Australian Securities and Investments Commission
- Bereavement Payment – Department of Human Services
Cover the people that matter most today
For total peace of mind for your entire family, call our friendly team now. We’re here between 8am and 8pm Monday to Friday on 1300 078 596. You can also request a call-back at a time that suits you.