Best funeral insurance

Compare Australian funeral insurance brands

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Maximum cover	Maximum entry age	Minimum sum insured	Terminal illness cover	Sum Insured	Expiry age
Promoted Apia Funeral Insurance	$15,000	80	$3,000		$15,000 million	No expiry age as long as premiums are paid	Save 5% on Apia Funeral Insurance premiums every year for the life of your policy. T&Cs apply.	Get quote View details Compare product selection Compare	loading
Promoted Real Funeral Cover	$15,000	79	$3,000		$15,000 million	100	Get 10% cash back on the premiums you've paid after your first 12-months with The Real Reward™. T&Cs apply.	Get quote View details Compare product selection Compare	loading
Seniors Funeral Insurance	$15,000	79	$3,000		$15,000 million	100	Get up to $15,000 in funeral cover, including an extra 25% bonus cover when you turn 85.	Get quote View details Compare product selection Compare	loading

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How we picked these

Our top picks for best funeral insurance

Maximum cover	Maximum entry age	Minimum sum insured	Terminal illness cover	Sum Insured	Expiry age
Best for trust
Apia Funeral Insurance	$15,000	80	$3,000		$15,000 million	No expiry age as long as premiums are paid	Save 5% on Apia Funeral Insurance premiums every year for the life of your policy. T&Cs apply.	Get quote View details Compare product selection Compare	loading	Why we like it It's issued by TAL, which had only 8.9 claims-related disputes per 100,000 lives insured. Only level premiums are offered – this means your insurance generally won't increase in price as you get older. Apia offers a 5% discount if you add another adult to your funeral insurance policy. One senior-friendly feature is that it will also reduce a policyholder's premium by 5% following their 84th birthday.

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Our expert says

"Before you get funeral insurance, make sure the provider offers capped premiums. This means your funeral insurance payout shouldn't exceed the total amount you've paid in premiums. It's really important a policy has this. Otherwise, you may as well just be putting money aside. If you're unsure, ask the insurer directly."

Gary Ross Hunter

Journalist

When evaluating these top picks, it is worth considering life insurance with funeral cover as a more comprehensive alternative. While dedicated funeral insurance provides a specific lump sum for end-of-life expenses, many Australians find that integrated funeral benefits within a broader life policy offer superior value and higher cover limits. According to Finder data, these integrated benefits often trigger a faster payout to help families manage immediate costs while the larger death benefit is being processed.

Best funeral insurance: Features to compare

There's no single best funeral insurance policy for everyone. Each of our circumstances are different. Use our top picks as a starting point. Funeral costs can add to cost of living stress, and at a time when Finder research shows 18% of Australians have faced a financial emergency in the last year, it's worth making sure you're covered - our analysis shows it can cost as little as $3.10 per week.

Choosing between a standalone policy and life insurance with funeral cover depends on your long-term financial goals. Standalone policies typically offer simpler application processes and guaranteed acceptance for older Australians, whereas life insurance often requires more detailed medical underwriting but provides significantly larger payouts for dependants.

Benefit amount

This is the lump-sum benefit your policy will pay to your beneficiaries when you die. Most plans in Australia range between $3,000 and $15,000 in cover. Apia and Suncorp let you increase the sum insured to $25,000. Australian Seniors pays an accidental serious-injury benefit of up to $45,000 (three times the Funeral Insurance Benefit Amount).

For those seeking larger sums, life insurance with funeral cover can provide hundreds of thousands of dollars in total protection. In these instances, the funeral benefit is usually an advancement of the total death benefit (often capped around $10,000 to $15,000) specifically designed to be paid out quickly upon receipt of a death certificate or medical evidence of terminal illness.

Guaranteed acceptance

There's no medical exam or blood test needed prior to being offered cover. As long as you meet the age eligibility requirements – usually ranging between 40 and 80 years of age – you'll automatically be accepted for your insurance.

Discount deals and offers

Many providers offer deals when you sign up to a policy as well as loyalty discounts and early cash-out options. There are 2 offers worth highlighting: Real Insurance gives back 10% of your premiums after 12 months and Australian Seniors gives a 25% bonus cover when you turn 85.

Policy expiry age

Whether your policy ends during your lifetime will be an important consideration for some people comparing funeral insurance. 5 out of 8 providers we compared specify that policies never expire as long as you keep up with your premium payments. 3 brands – Real Insurance, Australian Seniors and Guardian Insurance – offer cover until the policyholder's 100th birthday.

Premium choice

A choice of stepped premiums (that increase over time) or level premiums (a fixed amount for the life of the policy). Choose how affordable your cover is in the short and long terms based on your needs.

Premium structures vary significantly between these products. Standalone funeral insurance often uses level premiums to maintain affordability for retirees, while life insurance with funeral cover frequently utilizes stepped premiums that increase as you age. It is vital to assess whether you can sustain these rising costs in your later years to avoid losing cover.

Payout time

Some providers call out that payouts are typically made within a day of receiving all necessary claim details. 3 providers – Suncorp, Apia and Insuranceline – called out fast payout times of within 24 hours.

Terminal illness benefit

Get an early payout if you're diagnosed with a severe illness for which there's no known cure. We compared life insurance from the 8 providers above and all of them offer this benefit payment.

Accidental death cover

If you pass away after an accident, your family may get a payout of 3 times the amount you were insured for. Again, all 8 providers on Finder offer this cover type as standard. They also offered a lump sum for an accidental serious injury.

How much will a funeral actually cost me?

The cost of funerals varies greatly, with a basic cremation costing around $4,000 and a more elaborate service costing anything up to $15,000. Factors that might influence the cost of your funeral include the following:

• Whether there are religious or family requirements
• Whether there will be a wake
• Whether you are being buried or cremated
• If buried, the cost of a burial plot, casket, gravestone, transportation, etc.
• If cremated, the cost of an urn, flowers, funeral director, etc.
• Mandatory costs such as newspaper notices, death certificate, etc.

The amount of funeral insurance you need will depend largely on the type of funeral you're planning for.

When will funeral cover typically pay out benefits to my dependants?

Understanding whether your dependants will be paid is essential to ensure your policy provides value. Payment is typically dependent on 2 factors:

1. The circumstances of an insured person's death or terminal illness
2. How long after cover is issued the death or terminal illness occurs

Example breakdown of how a funeral insurance policy may pay out

Make sure you check the product disclosure statement for exact situations where a payout will be made.

When dealing with life insurance with funeral cover, the payout timeline for the funeral portion is usually accelerated. Most insurers aim to release the funeral advancement (the portion of the life cover designated for immediate use) within 24 to 48 hours of receiving initial documentation. This ensures families have liquidity while the full death claim, which can take weeks or months to process, is being investigated by the insurer.

What should I be aware of with funeral insurance?

Funeral insurance has a few potential pitfalls you'll want to look out for, including the following:

• Paying more over time than a funeral would cost. Choosing a policy with capped premiums would help you to avoid this risk. Some policies now state that you'll never receive less money than the total amount you've paid in premiums.
• Choosing the cheapest policy. If it doesn't cover all the basic benefits, you could find yourself underinsured.
• Falling behind with premium payments. This could lead you to having your policy cancelled. Finding a policy with a "premium pause" option could give you breathing space.
• Choosing a stepped premium policy if you're on a lower income. Stepped premiums increase with your age and could become unaffordable later in life.

Use cases for holding both life and funeral insurance

While it might seem redundant, there are specific scenarios where holding both a life insurance policy and a dedicated funeral plan is a sound strategy:

• Bridging the liquidity gap: If your life insurance is held within superannuation, the payout can be significantly delayed as it often goes to the estate or a trustee first. A small standalone funeral policy ensures your family has cash immediately available for the service.
• Complexity of estate planning: For those with complex estates, life insurance might be intended for debt clearance or inheritance, whereas funeral cover is ring-fenced specifically for burial or cremation costs.
• Maximising total cover: If you have reached the maximum benefit limit on your life policy, adding a funeral-specific plan can provide that final layer of protection for end-of-life expenses.

Keep in mind: When comparing policies, get on the front foot by raising any concerns or questions with a provider when reviewing their insurance.

Frequently asked questions

• What's the best funeral insurance in Australia?

  There's no single "best" funeral insurance, as it depends on your personal circumstances. But looking for competitive pricing, good cover options and underwriters you can trust will put you on the right path. That's why our top picks were Apia and Woolworths.

  Additionally, many consumers find that the best life insurance with funeral cover provides a superior balance of high cover and fast payout features.

• How much is funeral insurance per week?

  Finder research has found that funeral insurance can cost just $3.10 per week. The price of your cover will vary depending on factors such as your age and the benefit amount.

• What steps are being taken to improve funeral insurance?

  In 2023, the industry's new Life Insurance Code of Practice came into force. The self-regulated code added more than 50 new protections for consumers, including some aimed at helping the more vulnerable in the community, according to the Financial Services Council.

  The Council of Australian Life Insurers (CALI) told ABC News there'd be specific obligations for funeral insurance providers to call out that policies are not savings plans and that the total sum of premiums paid can exceed the payout.

• Aside from funeral insurance, what other options are available to me?

  If you don't feel that funeral insurance is right for your situation, there are several other ways you can cover your funeral expenses:

  • Pre-paid funeral. Either in a lump sum or through payments to a funeral director. You could also put the money aside in a high interest savings account to ensure it is there when needed.
  • Funeral bond. Your money is invested on your behalf by an insurance company or friendly society so that it holds its value and is exempt from taxation.
  • Super or life insurance. Life insurance inside or outside of super will cover your funeral expenses, although payment from a super fund can take time.

  While it's a great idea to shop around for a competitive price, keep in mind that searching for the cheapest policy alone can leave you with less than you were hoping for. Make sure you compare cover and features with care before you go with a policy.

• Which company offers the best burial insurance?

  Australian Seniors, NobleOak and Real Insurance are popular choices offering affordable and flexible funeral insurance plans.

• Is funeral insurance worth the money?

  Funeral insurance can provide peace of mind, but it can actually cost you more in premiums over time, than the benefit your family will receive when you pass away. If you stop making monthly payments on your premium and you cancel your policy, you lose what you've already paid and no longer have cover. Many have found that saving money in a dedicated savings account can be an effective alternative. It is essential to compare plans to ensure the premiums you pay do not exceed the funeral insurance payout.

• What is the average cost of funeral insurance in Australia?

  The average cost for a middle-aged person starts from around $10-20 per month for the cheapest plans, which typically have longer waiting periods for non-accidental death claims, claims limits of around $5,000, and may have age restrictions. Premium plans with higher payout figures of ~$15,000 and shorter waiting periods, have policy premiums of around $30 to $100 a month. Premiums increase with age.

To make sure you get accurate and helpful information, this guide has been edited by Angus Kidman as part of our fact-checking process.

Written by

James Martin

Journalist

James Martin was the insurance editor at Finder. He has written on a range of insurance and finance topics for over 7 years. James often shares his insurance expertise as a media spokesperson and has appeared on Prime 7 News, Insurance News, 7NEWS and The Guardian. An experienced journalist, James' work has featured in publications including The Irish Times, Companies100 and In Business. He holds a Tier 1 General Insurance (General Advice) certification and a Tier 1 Generic Knowledge certification, both of which meet the requirements of ASIC Regulatory Guide 146 (RG146). See full bio

James's expertise

James has written 181 Finder guides across topics including:

• Car, home, life, health, travel and pet insurance
• Managing the cost of living
• Money-saving tips