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Funeral Insurance Over 60

Compare your funeral cover options as someone over 60, including life insurance with funeral protection, with Savvy.

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, updated on August 25th, 2023       

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Funeral insurance over 60

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

Hitting the milestone of 60 can prompt reflection on the future and well-being of your loved ones in case you pass away. This is where funeral insurance for those over 60 comes into play. Tailored for individuals beyond middle age, this insurance provides a means to prepare ahead and ensure your family is financially equipped to handle your funeral costs when the time eventually arrives.  

While we don't directly compare standalone funeral insurance policies at Savvy, our free comparison service does include life insurance which can include funeral cover. Discover the range of options available to you for funeral planning right here with Savvy.  

What is funeral insurance for the over 60s?

Funeral insurance for those over 60 provides a financial safety net to cover funeral-related expenses. It involves making regular premium payments, typically on a monthly or fortnightly basis, in exchange for a predetermined lump-sum payout that is paid to a designated beneficiary upon the policyholder's death. 

This form of insurance is designed to offer assistance to families who suddenly find themselves responsible for funeral costs. Funeral insurance can cover costs such as: 

  • a death announcement 
  • transporting the deceased to the funeral or crematorium 
  • a coffin or casket  
  • costs for organising the funeral, memorial service, or wake 
  • flowers and catering for guests 
  • burial plot, headstone or cremation charges

In most cases, these arrangements are coordinated by a funeral director acting on behalf of the family. 

What's included in funeral insurance for the over 60s?

Funeral insurance typically provides a benefit amount ranging from $3,000 to over $15,000, and some insurers even extend coverage up to $25,000. Additional features that might be included in policies are: 

  • a choice between stepped or fixed premiums 
  • coverage for terminal illnesses 
  • double or triple payouts for accidental death 
  • compensation for significant accidental injuries 
  • family coverage options 
  • early payout alternatives upon reaching a specific age, often over 80 or 85 

Keep in mind there's usually a 12-month waiting period after purchasing such insurance before the full benefit amount becomes payable. During the initial 12 months, the full benefit payout might only be available in case of accidental death, not death from natural causes. 

What’s the difference between life insurance (with death cover) and funeral insurance?

What sets life insurance with death cover apart from funeral insurance? 

Standalone funeral insurance: 

  • Affordability: Generally funeral insurance is more budget-friendly than life insurance, but it offers narrower coverage.
  • Purpose: Provides a lump sum for covering funeral expenses, but can’t be used for any other purpose.
  • Immediate approval: You don’t need to have a medical examination for funeral insurance, and you can get instant approval and coverage.
  • Initial limitations: May have initial coverage restrictions during the first 12 months, typically covering only accidental death.
  • Options for stepped premiums: If you opt for stepped premiums, the cost of your premiums may increase with age.
  • Family policies available: You may be able to one policy that covers all your family members, including children, parents, brothers and sisters.
  • Suitability for over 60’s: Ideal for older individuals who may not qualify for or afford life insurance.

Life Insurance (with funeral cover): 

  • More comprehensive coverage: Offers broader coverage extending beyond funeral costs, including income protection and disability payouts.
  • Medical examination: Sometimes requires a medical exam tailored to your risk profile before you get approval.
  • Varied costs: Premiums fluctuate based on individual risk factors, which include things like where you live, your health status, age and policy preferences.
  • Versatile payout: Provides larger payouts starting at around $100,000 which are suitable for various needs, and are not limited to paying for funeral expenses.
  • Level premiums: Premiums can be structured to remain consistent over time, as opposed to stepped premiums, which get higher as you get older.
  • Cost-effectiveness: Potentially offers greater long-term cost-effectiveness due to its comprehensive coverage compared to standalone funeral insurance.

These differences highlight that while funeral insurance focuses on specific funeral expenses and offers immediate approval, life insurance offers more comprehensive coverage and versatility, with premiums and benefits tailored to individual circumstances. 

What alternatives to funeral insurance are available to help pay for my funeral costs?

When looking for alternatives to funeral insurance to cover your funeral expenses, consider these options: 

  • Savings account: Set up a dedicated savings account specifically for funeral expenses. Regular contributions over time can accumulate a fund to cover your funeral costs. This method of paying for a funeral is particularly relevant for the over 50s who don't like the possibility of paying funeral insurance premiums potentially for over 30 years. The average age of death in Australia is currently around 83 years. 
  • Term deposits or bonds: Invest in term deposits or bonds that mature around the time you expect your funeral expenses might occur. The average age of death in Australia for non-Indigenous people is currently around 83 years. 
  • Funeral bonds: Invest in funeral bonds, which are managed investment products designed to help you save regularly towards your funeral expenses.
  • Pre-paid funeral plan: Arrange and pay for your funeral in advance through a specific funeral director. This ensures your preferences are recorded and can potentially save you from future price increases.
  • Life insurance with funeral cover: At the age of 60 you may still be able to get a life insurance policy that includes funeral coverage as part of its benefits. This will offer you broader financial protection beyond just funeral costs. However, many insurers have an upper age limit of either 60 or 65 for their life insurance policies, so your options may be more limited than a younger person aged over 50 but under 60.
  • Superannuation: Check if your superannuation fund provides any benefits or options for covering funeral expenses. Be aware that accessing these funds might require your family to cover upfront funeral costs.

By considering these alternatives, you can choose the option or combination of options that best aligns with your financial situation and preferences for covering your funeral costs. 

Why compare life insurance through Savvy?

Frequently asked questions about funeral insurance for the over 60s

What is the average cost of a funeral in Australia?

Calculating the cost of a funeral service is not an easy task, as it depends on so many variables. The cost will vary depending on factors like service type, location and religious preferences. On average, the cost of a burial service is over $9,000, while cremations may cost around $6,300. However, basic options can start from $3,000 for cremations and $6,000 for burials. 

Can I still apply for funeral insurance when I'm aged over 60?

Yes, you can often still apply for funeral insurance when you're aged over 60. While eligibility criteria and policy terms may vary among insurers, many offer coverage options for older individuals even up to the age of 80 years.  

Do I still have to pay for funeral insurance past the age of 85?

The requirement to pay for funeral insurance typically ceases once you reach the age of 85. At this point, some policies may allow you to continue to be covered without the need to pay additional premiums, while other policies may offer an early cash-in option. 

What does early cash-in involve with a funeral insurance policy?

Early cash-in with a funeral insurance policy allows you to cancel your coverage at a specific age, often around 80 or 85, and receive a lump-sum cash payment. This payment may represent a higher portion of your total benefit amount (for example 120% of your agreed benefit amount) and can help cover your immediate financial needs or expenses.  

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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.

Funeral insurance over 60

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