3 things you didn’t know about funeral insurance

TOPICS:
3 things you didn’t know about funeral insurance

We’re not going to lie - funerals are a sad, inevitable part of our lives. They’re also not a particularly fun topic. But the reality is that, at some point, we’re going to have to arrange a funeral or need one for ourselves. That’s life.

The problem is that funerals cost quite a bit of money and are often a sudden expense — a financial burden at an already difficult time for those left behind. No one wants this for their family, which is why funeral insurance may be an option to consider.

Funeral insurance is a simple policy that gives a lump sum payout to help your loved ones pay for your funeral and associated expenses, which can help reduce your family's stress during an emotional time.

If you’ve never thought about funeral insurance, here are three things you probably don’t know (but should!):

Funerals can be expensive

No one really knows how much a funeral actually costs until they have to organise one. But in general, funerals can range from around $4,000 for a basic cremation to $15,000 for a more elaborate affair that includes a fancy coffin, flowers and burial.1 There are also lots of additional services to pay for, including funeral director fees, hearse transportation, permits and death certificates, a celebrant, newspaper advertising, and the wake.

Funeral insurance provides an immediate cash benefit for your loved ones  

The main benefit of funeral insurance is that it provides your loved ones with quick access to a lump sum amount upon your death — usually within 24 hours of submitting the completed paperwork. Imagine the relief of knowing that, during the difficult grieving process, the financial costs are taken care of. It’s one less thing for your family to worry about.

Funeral insurance differs depending on the provider

Funeral insurance can vary depending on your provider, including how much they cover (what the minimum and maximum amounts are), how much your premiums are, the frequency of payments and so on.

This is why comparing policies can be helpful in finding the best option for your needs. All funeral insurance providers in Australia are required to issue a Key Fact Sheet which will allow you to compare certain key features of a policy more easily. You should ask for this when you’re shopping around.

In general, funeral insurance provides:

  • an immediate lump sum paid to your loved ones upon death once proof of death is received by the insurer;
  • funds that can also be used for other related expenses; and
  • varying choices of cover (usually between $3,000 to $15,000) depending on the insurer

Just remember that it can vary across policies. It’s important to read the Product Disclosure Statement of each policy you’re looking to buy to find out exactly what is and isn't included. 

How many of these did you know?

Well, luckily — now you know all three! If you want to know more, you can read our article What is funeral insurance? Or if you’re ready, compare a range of funeral insurance policies with Choosi today and secure peace of mind for you and your loved ones. Choosi makes it easy to compare, choose and apply for funeral insurance. Not only does Choosi do hard work for you, you won’t pay extra when you purchase a policy through us!

References

1.Paying for your funeral – MoneySmart ASIC

Posted: 25 Jul 2019

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 any product. Choosi offers insurance products from a range of brands but does not compare all products available in the market.

TOPICS:

Search blog

Topics

Signup to our newsletter

GET MORE ARTICLES

Receive articles, news & tips as soon as they are published. We'll send occasional updates on the latest product offers, competitions and more!
By subscribing you consent to us contacting you and agree to our Privacy Policy



Related articles

How the insurance claims process works
09 Apr 2014

How the insurance claims process works

When it comes to insurance, it pays to know how a claim is processed but here are some steps you can take to ensure a smooth claim process

Read More
TOPICS:
Online shopping: PayPal or credit card?
03 Apr 2014

Online shopping: PayPal or credit card?

Evaluate the two most popular online payment methods and find out how you can pay safely online so you don't fall victim to fraud.

Read More
TOPICS:
6 quick facts about the race that stops the nation
27 Oct 2015

6 quick facts about the race that stops the nation

The Melbourne Cup is coming up for 2015, and while betting on the horses can be exciting you don't want to do the same with your finances.

Read More
TOPICS:

Ready to compare?