Death is inevitable. It is only a question of when that time comes. The hour of death cannot be predicted, so a funeral insurance can come in handy to save the family from the shock of its cost.
In Australia, funerals can cost anywhere between $4,000 and $15,000, depending on how elaborate or simple the entire arrangement is. Because funeral costs often have to be paid up front, it is highly recommended that you save up for it to give your family peace of mind in the process.
Do you think it’s too late for you? Think again. Although it is a good idea to start at an early age so you can pay a funeral insurance off early, you can still start pre-paying for your funeral at the age of 40 or 65. It really depends on the insurance provider.
Which insurance company is right for me?
The best insurance provider has your best interest at heart. They offer products and services that give value for money. So making a choice depends on the following:
- Acceptable age
Anyone aged between 45 and 75 years, for example, is eligible for Apia funeral insurance. The Allianz Life Cover, on the other hand, which is inclusive of the funeral costs, accept insurers less than 45 years old. - Premium cost
In most cases, it all goes down to the monthly premiums – whether it is affordable or not. Make sure that the insurance company offers substantial coverage at affordable monthly premiums and ideal payment arrangement. - Fixed or Variable
With a fixed premium, you are assured that the cost will never increase until your insurance is fully paid. Variable premiums work the opposite way. The former is the better choice, so choose an insurance provider that offers fixed premiums.
Finding the right funeral insurance
The best funeral insurance is one that meets you and your family’s needs. In choosing, ask yourself the following questions:
- Can I afford the monthly premiums without causing financial strain on my household?
- How long before I can fully pay my insurance?
- Does it cover typical items needed in arranging a funeral, such as a coffin, burial or cremation, cemetery plot, transport, death certificate, permits, funeral director fees and flowers?
- How easy would it be for surviving members to use the benefits from the funeral insurance?
- Does it cover the full cost of a funeral and still have extra that my family can use?
Aside from finding answers to these questions, it pays to look into a product’s features and possible alternatives to funeral insurance, along with their pros and cons. A great feature offered by Apia, for example, is that you will no longer pay any premiums after the age of 85 and your cover still stands.
Flexible assistance
Most funeral insurance plans these days not only cover funeral and burial but also serves as a whole life insurance policy. The only difference is that it is inclusive of a death benefit that may range anywhere from $5,000 to $25,000.
The Allianz’s life cover, for example, offers advanced funeral expenses of up to $15,000 with up to $85,000 lump sum pay out that beneficiaries may be able to claim. So even if you already have life insurance, you should still buy funeral and burial cover.
Numerous inclusions
Every funeral insurance is different, but a cover must include the basics, such as casket or urn, cost of embalming, cost of cremation, cost of the plot, headstone, digging and filling the grave, flowers, and hearse or other vehicles needed for the burial service. Would you rather pay for all these in advance or have surviving family members pay for them up front? The former is likely to be a better choice.
Spare the bereaved from financial stress
There are several considerations for burying the dead, including cultural traditions, family arrangements, among other things. We don’t want financial strains to cause additional stress on the grieving family.
A funeral insurance that is fully paid and ready for use can help alleviate the suffering of the surviving family. Depending on the inclusions, all funeral and burial requirements and services will be handled by the insurers as well, making it less stressful for the bereaved.
Some people say that funeral insurance has certain disadvantages, so they prefer to use their super fund, to pre-purchase funeral products, such as a cemetery plot, or invest in funeral bonds instead. It pays to check out all your options.
Buying funeral insurance is definitely sensible and practical. Planning your own funeral may seem like a morbid idea, especially for your loved ones, but they would probably thank you when the time comes because you provided for them even after death.
Did you find this article useful? Do you have some ideas of your own that you can share to our readers? Share your experience by leaving a comment below.
