Everything you need to know – Funeral Insurance
Losing a loved one can be very devastating. And if everyone came unprepared for this, including the deceased, the funeral expenses that go with this tragedy can cause even more stress to the bereaved family. This won’t be the case, however, if the deceased got funeral insurance in Australia.
Funeral insurance provides a lump sum benefit amount to the policyholder’s beneficiaries to be used as payment for necessary funeral expenses. This, therefore, gives you peace of mind, knowing that in the event of your death, your loved one’s won’t be left to shoulder all the costs that go with your funeral while they go through emotional turmoil at the same time.
However, with the vast number of different policies available from various Australian insurance providers, choosing the right coverage may be harder than you think. So here are some tips to help you get started.
Compare funeral insurance quotes
This is highly important in order to find the best coverage that meets your needs. But to ensure you get only accurate life insurance quotes, you need to be as honest as possible when providing your personal details. Why? Because insurance providers look at these factors when giving assessments:
- The sum-insured
- Your age
- Your gender
- Whether you smoke or not
- Where you live
- The features of the policy
Understand the features included in the policy
If you think choosing the one with the lowest premiums is the best buying decision, well think again. Often times, very low premiums equate to insufficient coverage. So when comparing quotes, you must understand the features included in the policy to ensure you get the best coverage out of your hard-earned money. Here are some of the features that you must carefully analyze before buying:
- Guaranteed acceptance
- Range of cover
- Premium cap
- Cooling off period
- Medical underwriting requirement
- Premium refund
- Worldwide cover
- Benefit when accidental death occurs after the first year
To help you understand all these criteria better, might as well call one of our advisers today.
Determine the right amount of funeral cover
The amount of funeral cover that you get will depend mainly on your personal needs. But to give you an estimate, according to MoneySmart, funerals in Australia may cost between $4,000 and $15,000. This cost may likely include the following:
- Cremation or burial
- Funeral director fees
- Burial plot
- Flower arrangements
- Transportation (if necessary)
So for this cost, the policy that you take out should cover you in between $5,000 to $30,000 at $1,000 intervals.
Read the fine print when comparing quotes
Do take the time to read the policy carefully before you buy. This will prevent you from paying more today and ending up getting less when your family claimed for benefit payment years later. Tradional funeral insurance is very expensive. It is significantly cheaper if you buy a life insurance policy.
Apply for funeral insurance policy
Yes, act by submitting an application once you’ve decided which policy to get. But if you find the process somewhat complicated, you’d better contact one of our insurance consultants for advice.