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Compare Funeral Insurance

Wondering how to compare funeral insurance policies to make sure you’re getting a good deal? Find out with Savvy!  

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, updated on August 25th, 2023       

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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 looking at taking out a funeral insurance policy? Are you wondering what are the best ways to compare funeral insurance to ease the financial burden on your family if you should pass away?  Funerals can be very expensive, costing several thousand dollars to over $15,000. Having the right insurance in place can reassure your family that they're protected if the unexpected occurs. 

Here at Savvy we don't compare standalone funeral insurance policies. However, we can help you compare different types of life insurance policies that will also cover your funeral costs, which may possibly offer better long-term value. Our free comparison service lets you compare life insurance policies side-by-side, helping you choose one that suits your needs from our panel of respected insurers.  

How should I compare funeral insurance policies?

There are relatively few insurers offering standalone funeral insurance in Australia. There are currently less than ten policies to choose from, so choice is quite limited. However, when comparing these funeral insurance policies, look at the following areas to compare the differences between them:  

  • Benefit amount: Look at the lump-sum payment the policy pays to your beneficiary upon your passing. Different insurers offer a range of coverage amounts ranging from $3,000 up to $15,000, with some insurers offering even higher options. 
  • Policy expiry age: Contrast policies that provide lifelong coverage or come with a high expiry age. Some providers extend coverage until the policyholder's 100th birthday, or offer other deals for seniors aged in their 80s or 90’s. 
  • Guaranteed acceptance: Check the policy doesn't require a medical examination, and guarantees automatic approval if you meet their age criteria (which is usually between 40 and 80 years old). 
  • Special discounts and offers: Explore different introductory deals, loyalty rewards, and early cash-out possibilities offered by the various insurance providers. 
  • Premium choice: Decide between stepped premiums (which increase over time) or level premiums (which are a fixed amount). Tailor your decision based on your short- and long-term budget considerations. 
  • Payout time: Make sure the provider you choose has a reputation for prompt payout times, usually within one day of receiving necessary claim information. Some insurers even promise payouts within 24 hours to ensure timely funeral arrangements can be made. 

Consider all these aspects of funeral insurance before deciding if a standalone funeral policy is the right choice to provide financial security for your family. 

Is funeral insurance, or life insurance with funeral options, the better choice?

Deciding between funeral insurance and life insurance with funeral options depends on your circumstances. Each option offers distinct benefits: 

Standalone funeral insurance: 

  • Is cheaper than life insurance, but offers less coverage
  • Provides a lump-sum payout specifically for funeral costs
  • Guarantees immediate coverage without a medical examination
  • May have limitations on coverage for the first few year
  • Premiums may increase as you age if you choose a policy with stepped premiums
  • Generally offers benefit options ranging from $3,000 to $15,000.
  • Suitable for older people who may not qualify for life insurance, or can’t afford life insurance premiums

Life insurance with funeral options: 

  • Offers broader coverage beyond just funeral expenses
  • Typically requires a medical examination for approval
  • Cost will vary according to your personal risk factors
  • Can provide larger payouts for a wider variety of needs
  • Premiums can be adjusted to remain level over time
  • Beneficiary can use the payout as needed, not just for funeral costs
  • May be more cost-effective in the long run and will certainly offer more comprehensive coverage

The choice hinges on your age, budget and priorities. If your primary concern is just covering your funeral costs, funeral insurance might suit you. However, if you're seeking comprehensive coverage that extends beyond funerals, life insurance with funeral options could be the better fit. Carefully evaluating your needs and preferences will guide you towards the most suitable choice. 

How much does funeral insurance cost?

The cost of funeral insurance in Australia varies depending on several factors, including which state you live in, the level of coverage you choose, and the insurer you select. On average, monthly premiums range from around $20 to $60. However, these costs can increase over time, especially if you choose a stepped premium policy where payments rise as you age.

It's crucial to carefully review the terms and conditions, compare quotes from different funeral insurance companies, and consider the long-term affordability of the premiums before making a decision to purchase funeral insurance. 

Why compare life insurance through Savvy?

Frequently asked questions about comparing funeral insurance

How does funeral insurance compare with a pre-paid funeral plan?

Funeral insurance provides a lump-sum payout to cover funeral costs upon the policyholder's passing. A pre-paid funeral plan involves pre-paying for a specific funeral service of your choice at today's prices. You choose the sort of funeral you want, arrange the details with a specific funeral director, and pay for it in advance.  

Can I also get coverage for accidental injury with funeral insurance?

Yes, some insurers provide additional accidental injury coverage as part of their funeral insurance policy. This offers extra financial protection in case of severe injuries caused by an accident. 

Is it possible to get a family funeral insurance policy?

Yes, it's possible to obtain a family funeral insurance policy from certain insurers. A family funeral insurance policy typically covers the policyholder, their spouse or partner, and dependent children under a single plan. This arrangement can provide a comprehensive coverage solution for the entire family, offering financial support in the event of unexpected funeral expenses. 

What happens if I miss a premium payment for my funeral insurance?

If you miss premium payments, your coverage may be impacted. Some policies offer a grace period during which you can catch up on missed payments, while others have more strict rules, and this may lead to policy cancellation.  

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Disclaimer:

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.

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