Funeral Insurance

Like other types of insurance, you pay monthly or fortnightly premiums (ongoing payments) for a fixed amount of cover. Usually you can choose between $5,000 to $15,000 cover which will be paid to your beneficiary when you die. With funeral insurance, you are not saving for funeral costs but buying insurance to meet those costs at some future date. Unlike taking out insurance for a car accident which is an unknown event, we all know that we will die sometime. Because you don't know when you are going to die, you need to think about whether you can afford funeral insurance over the next 10, 20 or more years.

Things to consider

Before you buy funeral insurance, check whether it is worth the money. We generally find that most clients will be able to apply for an increased level of life insurance through one of our insurers for the same premium. If you already have or are considering funeral insurance, it may be worthwhile contacting our office for a life insurance quote at the same time.


  • You can get cover from day one but most policies only cover accidental death in the first year or

  • Insurance may seem familiar and affordable when you take it out and may suit you if you aren't sure if you can save for funeral costs


  • Premiums generally go up over time. This means what started out as a cheap way to pay funeral costs can become very expensive, especially if you are living on a fixed income

  • If you can't afford to keep up the premiums or want to cancel your policy you are not likely to get back the premiums that you have paid

  • If you live another 5 to 10 years you may end up paying more in premiums that the cost of the funeral.

  • Visit the My Longevity website to work out your life expectancy, as most insurers only cover accidental death in the first 2 years, if you die from a terminal illness in this time you may not be covered. Check the policy's terms and conditions.

  • Sometimes it can take a while for your family to receive the insurance payout to cover funeral costs.Your own funeral can be hard to think about, but if you want to sort it out in advance, make sure you check out your options to get the best value for your money.

  • Pre-existing conditions may be excluded

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