Quite simply funeral insurance is a policy you can take out now; then when you die the policy will pay your nominated amount to your beneficiaries which they can use to cover your funeral or other final expenses.
It is a very simple form of insurance, available for a fortnightly or monthly premium, covering these costs can make the process of burial or cremation smoother and less stressful for those left behind.
Why Should You Cover Your Funeral Costs?
The death of a loved one is a sad and traumatic experience and organising a funeral involves a lot of decisions and details, including the coffin, flowers, transport, the service and other related costs.
Families don't always have the ready finance to meet these costs and it typically takes a while before the assets of the estate are distributed. Someone has to pay for the funeral and this in itself can cause friction between family members at a very emotional time. Your family will be grateful to you for making it easier for them by ensuring access to cash, as a lot of policies pay within 2 business days of completing the required claim documentation. You will need to read the relevant Product Disclosure Statement (PDS) for full details of the policy you are interested in.
A regular payment now may save your family a lot later!
Funeral insurance helps reduce your family's financial burden, in an emotional time. Funerals can be very expensive. It can be very difficult for grieving families to come up with thousands of dollars at short notice.
When purchasing a funeral insurance policy, you will need to select the cover that best suits both your budget, as well as the benefit you would like to have paid out. You are also able to take out policies which cover your partner and children until they reach the age of 21 (they will need to be financially dependent on you).
What Does Funeral Insurance Cover?
The type and level of cover available will depend on who the insurer is. There will be variations in what they cover, minimum and maximum cover, how much the premiums are and how premium payments are scheduled, which is why you need to compare. To get the right deal you should compare the funeral insurance products offered by various companies.
The premiums may vary, but generally funeral insurance policies available through Choosi will offer:
You should read the product disclosure statement of the policy you are looking to purchase to find out exactly what is and isn't included in the policy.
Funeral cover buys you peace of mind
You may well think "What benefit is there for me, I'll be dead?" The real benefit to you, of course, is peace of mind.
With the expenses covered, you know your family can arrange a funeral that pays fitting tribute to you and the life you led. Your family will be able to give you a funeral that will express their love and respect for you and give them the closure they need as they bid you farewell.
These articles are provided as reference material to allow more informed decision making, but are not intended as being a complete source of information on any topic. All readers should make their own independent analysis on the topic to make sure they have considered the aspects that are important to them.