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Family Funeral Insurance

Find out about family funeral insurance and the features to look for with Savvy to help you compare your policy options.

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, updated on August 25th, 2023       

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Family 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 considering the financial well-being of your loved ones after your passing? Family funeral insurance might be the solution you're after. The death of a family member can place a significant financial burden on a family, with a funeral often costing thousands of dollars. Family funeral insurance is designed to provide financial assistance during such a challenging time, ensuring the family has the necessary funds to cover funeral expenses. 

At Savvy, we don't offer comparisons between different standalone funeral insurance policies. However, we can assist you to compare life insurance policies that also offer coverage for the cost of a funeral. Our 100% free comparison service helps you compare life insurance policies side-by-side, so you can see the differences and make an informed choice. Compare life insurance options with us today!   

What is family funeral insurance?

Family funeral insurance is a type of funeral insurance that provides a lump sum payout to cover the cost of a funeral for any of the named family members on the policy. This insurance ensures that if you, or any covered family member passes away, a lump sum payment is made to cover their funeral expenses. 

This type of insurance policy can include you, your spouse or partner, your children, and even cover for your parents if required. Available benefits range from a minimum of $3,000 up to $15,000, or sometimes even more if required. It is usually available for anyone aged from 40 to 80 years of age, although younger children can also be offered cover as family members. 

However, as with all funeral insurance cover, it is important to read the fine print on an insurance policy carefully to ensure that you are getting value for money. There are some policies available that do not come with price guarantees, which means you could end up paying more in premiums than the payout amount you eventually receive.  

What does family funeral insurance offer and how do I compare policies?

Some of the features of family funeral insurance to compare include:  

  • Multi-policy discounts: Insurers often offer discounts (up to 20%) when family members purchase policies together, so compare what discounts may be available 
  • Simplicity: Having all family members covered under one policy streamlines claims and payments, reducing the hassle of maintaining multiple insurance policies
  • Flexible premium payments: Choose from stepped or fixed premiums. Stepped premiums for funeral insurance start with lower costs when you begin the policy. However, the premium increases as you age, leading to higher payments over time.
  • Quick payouts: A family funeral insurance policy will pay the benefit amount out very quickly – usually within 24 hours of a claim being submitted so that funeral planning can go ahead 
  • Early cash payout options: If a family member reaches a set age (often over the age of 80 or 85), many insurance policies offer an early cash payout option, which means cancellation of the policy in return for a cash payout that may be higher than the original benefit amount 
  • Comprehensive benefits: Family policies can include standard funeral insurance features plus optional additions such as accidental death or accidental severe injury cover 
  • Children's coverage: Some policies do allow children under 21 to be included in the policy 
  • No medical exams: Generally, no medical exams are needed for those under 70 years old 

Overall, family funeral insurance can offer a convenient and affordable way to provide funeral cover to all your family together under one policy.  

How does family funeral insurance compare with life insurance? ​

Why compare life insurance through Savvy?

Frequently asked questions about family funeral insurance

Can I buy funeral insurance on behalf of another family member?

Yes, you can purchase funeral insurance on behalf of other family members such as your parents. You can be the policyholder and pay the premiums for them, ensuring they have coverage even if they're unable to apply themselves. As long as their name is listed as the insured person, the coverage will apply to their funeral expenses, regardless of who pays the premiums.  

How much will a funeral cost my family?

A survey by Australian Seniors found the average cost of a burial service was just over $9,000, while the average cost of a cremation was $6,334. However, a low-cost basic cremation will cost a minimum of $3,000, while a basic burial service will start from $6,000. Savvy can help you calculate the cost of a funeral and also compare life insurance policies.  

Are there any waiting periods with family insurance?

Yes, in the first 12 months after taking out funeral cover, you may only be covered for accidental death. During this period, if you pass away due to illness your premiums may be refunded. However, after the 12-month period your beneficiary will receive the full benefit amount regardless of cause of death (with the exception of suicide.)  

What other options are there to taking out family funeral insurance?

Other options which will assist you to pay for the funeral costs of a family member include:  

  • Life insurance with funeral cover: Take out a life insurance policy that includes funeral cover for wider financial protection.
  • Funeral bonds: This is a managed financial product similar to a savings plans for your funeral.
  • Pre-paid funeral plan: Pay for your funeral in advance through a specific funeral director. This will ensure your exact wishes are known.
  • Superannuation: Your super fund could also help with funeral costs, but you won’t get a quick payout so you may need to pay for the funeral out of pocket first.
  • Dedicated savings account: Some families save regularly over time, instead of getting funeral insurance. 

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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.

Family funeral insurance

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