To help you going through these heartfelt times, we will give a comprehensive overview of funeral insurance costs and features in Australia as of August 2024.
The cost of funeral insurance in Australia typically ranges from $10 to $30 per month. However, premiums can vary significantly based on factors such as age, coverage amount, and policy features. Here is a more specific breakdown:
Funeral insurance policies in Australia typically offer coverage ranging from $3,000 to $15,000. The coverage amount you choose should align with the estimated cost of your desired funeral arrangements.
Average Costs of Funeral Insurance In Australia
The cost of funeral insurance in Australia typically ranges from $10 to $30 per month. However, premiums can vary significantly based on factors such as age, coverage amount, and policy features. Here is a more specific breakdown:
- Low-Cost Plans: $10 – $15 per month. Typically offer coverage between $3,000 and $5,000
- Mid-Range Plans: $15 – $25 per month. Coverage usually ranges from $5,000 to $10,000
- Premium Plans: $25 – $30+ per month. Can provide coverage up to $15,000 or more
Coverage Amounts of Funeral Insurance In Australia
Funeral insurance policies in Australia typically offer coverage ranging from $3,000 to $15,000. The coverage amount you choose should align with the estimated cost of your desired funeral arrangements.
Key Features by Cost Range
Low-Cost Plans ($10 – $15 per month)
- Basic coverage (usually $3,000 – $5,000)
- Longer waiting periods for non-accidental death claims (often 12-24 months)
- Limited or no additional benefits
- Age restrictions may apply (e.g., only available for those under 70)
Mid-Range Plans ($15 – $25 per month)
- Moderate coverage ($5,000 – $10,000)
- Shorter waiting periods (often 6-12 months)
- Accidental death benefit (usually pays out 2-3 times the chosen cover amount)
- Option to cover spouse or partner
- Flexible premium payment options (e.g., fortnightly, monthly)
Premium Plans ($25 – $30+ per month)
- Higher coverage amounts (up to $15,000 or more)
- Shortest waiting periods (some offer immediate coverage for accidental death)
- Enhanced accidental death benefits (up to 3 times the cover amount)
- Terminal illness benefit (early payout if diagnosed with a terminal illness)
- Bonus cover (e.g., 25% increase in cover after a certain period)
- Premium capping or freezing options
- Wider age range for applicants (often up to 79 years old)
Additional Considerations Of Funeral Insurance In Australia
- Premium Increases: Many policies provide premiums that increase with age, potentially becoming significantly more expensive over time.
- Lifetime Premium Cap: Some insurers offer a cap on total premiums paid, ensuring you never pay more than your benefit amount.
- Cooling-Off Period: Most policies offer a 30-day cooling-off period during where you can cancel without penalty.
- Guaranteed Acceptance: Many funeral insurance policies offer guaranteed acceptance for Australian residents within the eligible age range, typically 40-79 years old.
- Claim Processing Time: Some insurers promise to process claims within 24 hours of receiving completed documentation.
Alternatives to Consider
While funeral insurance can provide peace of mind, it’s worth considering alternatives such as:- Prepaid Funeral Plans: Lock in today’s prices for future funeral costs.
- Funeral Bonds: A tax-effective investment option to save for funeral expenses.
- Savings Accounts: Dedicated high-interest savings accounts for funeral costs.
- Living Legacy Forest: Cremate your loved ones and treat their ashes to become nutrients for plant growth. You will become a Legacy Tree in your afterlife, giving life to nature and forever connect with your family through unlimited visits to the gardens at Mornington Green and ongoing care in perpetuity.
