Everything You Need to Know About Funeral Insurance

There's no telling what will happen in the future. But the good thing is that you still have the chance to prepare for it. That is why when you die, the last thing that you want your family to do is to worry about their finances, particularly the one relating to your funeral.

With funeral insurance, your family would have enough funds to cover the expenses of laying you to rest. Through the payment they receive, they wouldn't have to dip into your savings or your other sources of funds, as your insurer will have all the funeral expenses taken care of.

In this article, we will share with you some of the things that you need to know about this type of insurance. These pieces of information will be essential especially when you're shopping for a policy and are looking for the best deal in the market. Let's get started with...

  1. The amount of cover. As with other types of insurance, the amount of cover varies widely depending on your needs. Some start at $1,000, up to about $30,000.
  2. How benefits are given out. Like life insurance, funeral insurance is given out as a lump sum payment. This enables your loved ones to have ready funds in the event of your death.
  3. Medical exams. Unlike most forms insurance policies, this one doesn't require you to undergo medical exams during your application.
  4. What your exact coverage is. This of course varies from insurer to insurer. However, basics such as the casket or urn, the funeral services, and burial plot are included in the policy. There are also exclusions. For example, many only cover accidental deaths within the first 12 months upon taking out the policy. Thus, the beneficiaries may not receive a payment in the event of the policyholder's self-inflicted death or other causes. It is always best to consult with a qualified advisor or the insurance company for specific details about a policy.
  5. Standalone policy? You may apply for funeral insurance by itself, or as a part of your life insurance policy.

Basically, these are the things that you need to look out for when taking out a funeral insurance policy. Again, it's always better to get yours via a qualified advisor, as they can help you choose the best policy for your needs and budget. That's where the advisors at Rate Detective can help you. They will assess your needs as well as provide you with rate comparisons of Australia's top insurers to help you find a policy that's perfect for you.

Get your quotes now

What to find out more? Enquire now

Published on June 6-th, 2013 in Insurance
Damon Rasheed is the CEO of Rate Detective, an Australian financial service comparison sites specialising in Life Insurance, Income Protection Insurance and home loans. Damon holds a Master's Degree in Economics from the University of Melbourne and has been involved in many start-up internet businesses.
Enquire about Insurance

Important Information

Not all providers in the market are included in the comparison.

Any information or advice contained on this website is general in nature and has been prepared without taking into account your objectives, financial situation or needs.