Best Funeral Insurance

Compare life insurance policies with funeral insurance included through Savvy to help you find the right policy for your needs.

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, updated on August 25th, 2023       

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Best funeral insurance

We’ve partnered with Compare Club to bring you a range of life insurance policies to help you compare them side by side.

Are you wondering how to find the best funeral insurance to ease the burden on your family during a very difficult time? Funerals can place a considerable financial strain on families, with costs ranging from thousands of dollars to well over $15,000. Having appropriate insurance in place to cover this expense can provide your family with reassurance that they are protected just in case the unexpected does happen.   

Here at Savvy, we don't compare stand-alone funeral insurance policies. However, we can help you compare life insurance policies that include coverage for the costs of a funeral. This option may offer the best value for money in the long term. Our free comparison service lets you compare life insurance policies side-by-side so you can clearly see which one best fits your personal needs. Start comparing insurance policies with Savvy today, so your loved ones can rest assured they are financially protected. 

What is funeral insurance and how does it work?

Funeral insurance is a type of insurance that covers the cost of your funeral when you pass away. It's designed to provide financial support to your family or loved one during a difficult time. Typically, funeral insurance policies offer a lump sum payout, usually up to $15,000, which can be used to cover expenses directly related to the funeral. These expenses might include:

  • death notification in a newspaper  
  • fees for a funeral director, clergy or celebrant 
  • hearse transport 
  • burial or cremation costs 
  • flower arrangements 

The insurance benefit is usually paid out to a named beneficiary that the policyholder nominates when they sign up for the policy. This is usually a spouse, partner or close family member. 

Such policies tend to appeal to seniors and older people who can no longer afford a life insurance policy, perhaps due to a pre-existing medical condition, or being aged past the cut-off date for acceptance for general life insurance.   

The best funeral insurance, whether purchased as a standalone policy or as part of a general life insurance policy, ensures that your loved ones won't face a financial burden when planning your funeral, allowing them to focus on remembering and honouring your life without added stress. 

What features should I consider when looking for the best funeral cover for my needs?

When searching for the best funeral cover that suits your needs, it's important to think about the following features: 

  • Benefit amount: This refers to the lump-sum payment your policy gives to your beneficiaries after your passing. Compare the coverage amounts, usually between $3,000 and $15,000, with certain insurers providing higher options.
  • Guaranteed acceptance: Seek policies that don't demand medical examinations, assuring automatic approval if you meet the age criteria (typically between 40 and 80 years old).
  • Special discounts and offers: Look at the introductory deals, loyalty rewards, and early payout possibilities provided by various insurance companies.
  • Policy expiry age: Compare policies that either last throughout your lifetime, or come with an expiry age. Some providers extend coverage until the policyholder's 100th birthday.
  • Premium choice: Decide between stepped premiums (which increase over time) or level premiums (which are a fixed amount). 
  • Payout time: Consider the advertised payout time, which can be within one day of receiving the necessary claim information. Some insurers even promise payouts within 24 hours to ensure funeral arrangements can go ahead.

What are the differences between life insurance and funeral insurance?

There are plenty of differences between life insurance (which may include funeral cover options) and basic funeral insurance. These are some of the main differences:   

Life insurance Funeral insurance
Policy coverage
Comprehensive coverage which provides a lump sum to cover a variety of financial needs, not just funeral costs
Limited coverage which is solely for funeral expenses
Premium cost
The cost of premiums depends on factors like your age, your health, and the coverage amount you require
Premiums are not dependent on personal risk factors, but may increase as you age, potentially costing more as you get older
Premium payments
Offers both stepped premiums (which increase as you age) and level premiums (which remain constant except for inflation rises)
Also offers fixed premiums or options for stepped premiums
Eligibility requirements
Often requires a medical exam and health assessment to determine premium cost
Doesn't require any medical exam, but there may be some exclusions
Age restrictions
Maximum age to purchase life insurance cover varies between insurers, but is typically between 60-75 years
New policies are often available until about age 79, with premium payments required until age 90 (after which coverage is often provided free)
Benefit payout potential
Provides an agreed lump sum payout amount which can range from $100,000 up to more than $10 million
Provides an agreed lump sum usually between $3,000 and $15,000 to specifically cover funeral costs
Policy customisation
Offers flexibility to choose the type of cover you want, the coverage amount, the extent of events covered and other options
Generally limited to a fixed coverage amount which can only be used to pay for funeral costs and so may not offer any customisation options
Benefit use
Lump sum payment can be used for various financial needs and isn't restricted to funeral expenses
Payment is earmarked only to be used for funeral expenses

Why compare life insurance through Savvy?

Frequently asked questions about the best funeral insurance

Does funeral insurance offer any additional benefits?

The best funeral insurance can go beyond just covering burial or cremation expenses. Some policies provide extra advantages, potentially increasing their value, including: 

  • Accidental death cover: Some insurers double or triple the payout if you pass away accidentally. This may be included on the policy, or offered as an extra option.
  • Terminal illness cover: Some policies pay out if you're diagnosed with a terminal illness. This money can be used for funeral planning or other needs.
  • Accidental injury benefit: Some policies offer a lump sum for serious injuries under a specific age, like paralysis or loss of limbs.
  • Child cover: Certain policies also provide benefits if your child is severely injured or passes away, although usually this is an optional extra.


However, the additional benefits available differ between the insurance companies who offer funeral insurance in Australia, so it's well worth comparing policies so you get an idea of what's available.

What are the alternatives to funeral insurance?

Some of the alternatives to buying standalone funeral insurance include: 

  • A life insurance policy that includes funeral cover 
  • A pre-paid funeral plan with a specific funeral director 
  • Using your existing savings – some people have a savings account specifically set up for this purpose
  • Superannuation – your family may be able to pay for your funeral using funds from your superannuation, but they may have to pay funeral costs upfront first before receiving your superannuation money down the track
Is funeral insurance really worth it?

Funeral insurance can help your family financially, but there are things to be careful about. Two main problems are: 

  • Paying too much: Most funerals cost less than $10,000. If you've had funeral insurance for a long time, you might pay more in premiums than the funeral's actual cost. It's important to calculate the cost of a funeral compared to the amount spent on funeral insurance over the years to decide if it offers good value for money
  • Rising premiums: If you choose funeral insurance with stepped payments, it could get expensive as you get older
Does cause of death have any effect on a funeral plan payout?

During the first 12 months of holding a funeral policy, you may only be covered for accidental death. However, after this exclusion period is over, the policy will usually pay out for any cause of death, with the exception of death by suicide.  

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Savvy is partnered with Compare Club Australia Pty Ltd (AFS representative number 001279036) of Alternative Media Pty Ltd (AFS License number 486326) to provide readers with a variety of life insurance policies to compare. Savvy earns a commission from Compare Club each time a customer buys a life insurance policy via our website. We don’t arrange for products to be purchased from these brands directly, as all purchases are conducted via Compare Club.

Savvy does not compare all life insurance policies or providers currently operating in the market. Any advice presented above or on other pages is general in nature and doesn’t consider your personal or business objectives, needs or finances. It’s always important to consider whether advice is suitable for you before purchasing an insurance policy.

For any further information on the variety of insurers compared by Compare Club or how their business works, you can read their Financial Services Guide.

Best funeral insurance

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