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.
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. Stepped premiums, on the other hand, tend to go up on your policy anniversary.
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.
Your premium is guaranteed to reduce by 5% for every 5 continuous years that you hold your policy. The only other provider with a similar feature is Medibank, but its discount is just 3%.
Reassurance that a payout with Woolies won't be less than the total you've paid in premiums since taking out cover.
Further ways to save. Members of Woolies' Everyday Rewards scheme get 10% off for the life of their policy. This is more attractive than Real Insurance's promise of 10% back in premiums after 12 months of your policy.
How we chose top picks for funeral insurance
Our editorial team looked at 25 insurance providers in Australia that offer funeral cover. Most brands offer payouts built within their life insurance policies (the benefit is often referred to as "final expenses" cover).
However, we only included providers that offer standalone funeral insurance.
Those that let you take out standalone funeral cover were: Australian Seniors, Apia, Guardian, Insuranceline, Real Insurance and Suncorp.
We chose each top pick because of its value and features compared with other providers in Australia.
Our editorial team analysed the brands based on their existing sign-up offers and ongoing premium savings.
Additionally, we took into account policy features including:
Cover limits
Guaranteed acceptance
Option to increase cover in the future
Terminal illness cover
Accidental death cover
Accidental serious injury
Loyalty discounts
Bonus cover
Payout times
We settled on Woolworths due to its straightforward policy that offers peace of mind around premium payments and payouts.
With Woolworths, you'll never be paid out less than the total you've paid into a policy over time.
Woolworths offers level premiums which don't go up as you age. Some providers set up their policies with stepped premiums, which increase every year at the "policy anniversary".
In times of high economic uncertainty, it's good to know your premiums will actually reduce by 5% after 5 continuous years – this reduction was 2% more than any other provider.
Not all providers offer these types of policy guarantees. For example, Suncorp's policy wording states: "The cost of your cover is not guaranteed to remain the same each year."
Apia states: "Premium rates are not guaranteed."
In addition to death cover, Woolies offers terminal illness cover which isn't the case with Insuranceline, Apia or Suncorp.
It also covers accidental death and accidental injury fixed at 3 times your benefit limit. Some competitors only cover accidental death for the first 12 months of a policy.
Our winner was Apia, followed by Suncorp, both of which are underwritten by TAL* and share the same core policy features.
Apia came out on top for specifically calling out that it sets level premiums that won't typically increase with age.
To settle on our pick for trust, we looked at 11 insurers that share claims and claims-related dispute data with Moneysmart.
We reviewed 4 performance criteria as follows:
Claims acceptance rate
Average claim time
Disputes per 100,000 lives insured
Policy cancellation rate
*TAL outperformed the industry average in each of these markers for the year to 31 December 2021. These are the most recent figures available.
With a policy cancellation rate of only 4.4%, TAL was far lower than the industry average of 7.0%. It bettered Hannover Re (8%) and Swiss Re (33.9), which are the main competitors for direct funeral insurance in Australia.
TAL also had the lowest average claim time of the 3 main underwriters, at 0.6 months. The industry average was 0.7 months.
What's more, TAL had just 8.9 claims-related disputes per 100,000 lives insured. The industry average was 10.3 and once again it outperformed Hannover Re (12.6) and Swiss Re (10.6).
It should be noted that TAL's high claims acceptance rate of 99.5% was still lower than the 100% scores from 7 other insurers.
It's worth noting that Insuranceline is also underwritten by TAL. We discounted Insuranceline in this category as it had a low average score of 2.0 from 78 reviews on Product Review.
Despite each having zero disputes per 100,000 lives insured, AIA, NobleOak and Zurich were all excluded by our research team as these brands do not offer standalone funeral cover. Instead, a funeral payout sum is included within their life insurance policies.
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."
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).
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 point of comparison for some people. 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.
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. All 8 providers we compared 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:
The circumstances of an insured person's death or terminal illness
How long after cover is issued the death or terminal illness occurs
Example breakdown of how a funeral insurance policy may pay out
Cause of death
Timeline
What's paid?
Accident
During the first 12 months of holding the policy
The sum insured
Sickness and other causes
During the first 12 months of holding the policy
Premiums are refunded
Due to natural causes, accidents, sicknesses and other causes
After 12 months of holding the policy
The sum insured
Make sure you check the product disclosure statement for exact situations where a payout will be made.
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.
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
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.
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.
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.
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.
To make sure you get accurate and helpful information, this guide has been edited by Angus Kidman as part of our fact-checking process.
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, WIN News, Insurance News, 7NEWS and The Guardian. 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 212 Finder guides across topics including:
With Funeral Plan from Guardian Insurance, protect your loved ones against the financial burden that they may have to endure when you pass away. The lump sum benefit can help pay your funeral expenses and any other expenses that may arise.
Looking for cheap funeral insurance? Avoid getting ripped off or paying more than you need with this handy guide.
Important information about this website
Finder makes money from featured partners, but editorial opinions are our own.
Finder is one of Australia's leading comparison websites. We are committed to our readers and stand by our editorial principles
We try to take an open and transparent approach and provide a broad-based comparison service. However, you should be aware that while we are an independently owned service, our comparison service does not include all providers or all products available in the market.
Some product issuers may provide products or offer services through multiple brands, associated companies or different labeling arrangements. This can make it difficult for consumers to compare alternatives or identify the companies behind the products. However, we aim to provide information to enable consumers to understand these issues.
We make money by featuring products on our site. Compensation received from the providers featured on our site can influence which products we write about as well as where and how products appear on our page, but the order or placement of these products does not influence our assessment or opinions of them, nor is it an endorsement or recommendation for them.
Products marked as 'Top Pick', 'Promoted' or 'Advertisement' are prominently displayed either as a result of a commercial advertising arrangement or to highlight a particular product, provider or feature. Finder may receive remuneration from the Provider if you click on the related link, purchase or enquire about the product. Finder's decision to show a 'promoted' product is neither a recommendation that the product is appropriate for you nor an indication that the product is the best in its category. We encourage you to use the tools and information we provide to compare your options.
Where our site links to particular products or displays 'Go to site' buttons, we may receive a commission, referral fee or payment when you click on those buttons or apply for a product.
When products are grouped in a table or list, the order in which they are initially sorted may be influenced by a range of factors including price, fees and discounts; commercial partnerships; product features; and brand popularity. We provide tools so you can sort and filter these lists to highlight features that matter to you.
Please read our website terms of use and privacy policy for more information about our services and our approach to privacy.
We update our data regularly, but information can change between updates. Confirm details with the provider you're interested in before making a decision.
