Funeral Insurance FAQs

 

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Frequently asked questions

You will need to work out what type of funeral insurance plan you need (either a single plan or family plan), and how much cover you will need for any final expenses that your family may need to cover. A lump sum payment will be made to the beneficiary when either you or your partner/child dies if they are covered under the policy.
The amount of cover you need and apply for will be dependent your needs and your personal circumstances. You may want to consider what type of funeral you would want and how much your family will need to meet the cost for that funeral. You may also want to consider any other final expenses that your family may need to meet after you are gone.
For most Funeral Insurance or Final Expenses Insurance Policies directly available through Choosi you must be an Australian resident aged between 18 and 79 years to apply.
Yes, you can take out a policy on behalf of your partner, however you will not be able to nominate yourself to receive the benefit. You can also include your partner on your policy if joint cover is available as an option.
Yes, your partner can take out a policy on your behalf, however they will not be able to nominate themselves to receive the benefit.
Yes, you can take out a policy on behalf of your parent, however, you will not be able to nominate yourself to receive the benefit.
Final expenses insurance is essentially a type of funeral insurance, which can help go towards your funeral and other end of life costs. You nominate how much money you would like your beneficiaries to receive, pay in a regular premium and when you pass away your beneficiaries are paid the nominated amount.
Funeral insurance is a smart way to ensure that final expenses related to you passing away are taken care of, alleviating your family from the financial burden. These expenses could include paying for your funeral or paying off any unpaid debts like credit cards.

A small benefit of funeral insurance is that you pay a small regular amount (the premium), and the full benefit is paid in the event of death, regardless of how much money has been paid in. Cover is for Accidental Death only in the first 12 months, then death by any cause thereafter. Check the Product Disclosure Statement of the funeral policy you are interested in as these details may differ slightly.
You will need to assess how much money will be required to cover any final expenses that your family may need to cover; the main expense will be the cost of your funeral (which can  generally range anywhere between $4,000 to $14,000); other final expenses could include unpaid debts, travel costs for your family to attend the funeral or to cover your family for any unpaid leave they may need to take at the time of your passing.
Your funeral cover will start as soon as your application has been accepted by the insurer that you choose to take out your policy with. For Policies directly available through Choosi, coverage is limited to accidental death for the first 12 months and full cover applies thereafter. Your first premium is deducted from the policy commencement date, which will be set out in the policy schedule.
You will need to check the Policy Disclosure Statement for the policy that you are looking to purchase, however as a guide, most policies offer cover whilst you are travelling overseas.
This will all depend on which policy you select. For a majority of our direct insurance policies available through Choosi, your premium will depend on the type of policy (age-based or fixed options).

If you select the age-based premium option, your premium rate will increase on each Policy Anniversary if the oldest Life Insured on the Policy is aged between 44 and 80. If the oldest Life Insured on the Policy is younger than 44, or older than 79, your premium rate won’t increase due to age.

If you choose the fixed premium rate option, your premium rate will be fixed at the rate you are paying at the commencement of your Policy. However your premium may still increase if you choose to amend the amount of cover or if you do not opt out of any automatic sum insured increases that we offer you.

Also with some policies available through the direct insurance brands, whichever premium option you choose, your Benefit Amount will automatically increase by 5% at each Policy anniversary with a corresponding increase in premium; this is designed to help your level of insurance keep pace with the cost of living. You can decline these automatic increases if you wish. Your premium will increase with any Benefit Amount increase that you request or accept.
When you purchase your policy you have a cooling off period, and so long as you cancel within this time you will get a full refund of the premium that you paid.

Because final expenses insurance is not a savings or investment plan, if either you or the insurer cancels your cover after the 30 day cooling off period, cover ends and no benefit is payable and there are no premium refunds.
This will depend on the insurer but there are single plans and family plans available. Family plans will generally cover yourself, your partner and any children you have until they reach the age of 21.
You will need to check the Policy Disclosure Statement for full details of exclusions of any policy that you are looking to purchase. Generally, however, you are only covered in the first 12 months for accidental death, after that time you will be covered for death from any cause including accidental death and sickness.
No, the benefit paid out for final expenses cover is generally a tax free payment. You should obtain your own tax advice to determine the tax impact of the policy.
You can apply to change the level of final expenses cover, as long as it is within the range of cover offered by the insurer.
Important Note:
The answers above are to be used as a reference guide only and do not substitute or replace your insurance contract, the Product Disclosure Statement (PDS) or Certificate of Insurance.

 

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