The best product in Australia is funeral insurance. It has only been available for a few years. Prior to this, only a few companies offered funeral coverage. It was costly and not worth it. There are many companies competing for your business, so funeral and crematory insurance is more affordable, competitive and widely available. You only have to look at all the advertisements to see that it is one the most popular insurance products.
These are the most common features you can expect to see in your funeral insurance policy.
Age Acceptance & Dependency: Some companies guarantee acceptance for all ages. Others will accept you for up to 79 years. Other companies give you the option of getting it for free after 90, if you’ve been with them for more than 10 years. Your children may not require family coverage to be insured up to 21 years old. Although it would be a terrible thing to lose your child, having some coverage for their funeral costs can help reduce the stress.
Payment Options Many insurance companies now offer a mix of monthly, yearly or fortnightly payments. It is important to get it interest-free. It is unlikely that it will be worth the extra 10% interest if you pay monthly rather than yearly.
No health or medical questions: Some insurance companies may ask you questions about your health or request that you get a medical. Do not be misled into believing that companies with no questions are better. Insurance companies will want to know if you are healthy and expect to live long. This will allow them to perceive you as less risk, and make your policy more affordable.
Unintentional Serious Injury: This is often an option, even though it is sometimes included in more expensive funeral coverage policies. You can choose to receive an annuity, which is typically covered by life insurance, or a lump sum payout in the event of a serious injury. You are usually covered by compulsory or state insurance if you are hurt in an accident at work or on the road. However, if you are injured in an accident at work or fall from a tree, how can you provide support for yourself and your family long-term? This type of situation is usually covered by life or disability insurance. If you don’t have this coverage, then consider adding it to your funeral policy.
The payout amount: As with all insurance products, the payout amount determines how much you will receive. Your premium will increase if the payout is higher. The payouts range from $5 to $15k, but you can discuss your options with your broker or insurer to get the exact amount you need. Your funeral expenses payout may not be available until 12 months after you have paid them. Check your policy to confirm.
Funeral insurance is a wonderful product that can pay for funeral expenses in times when a large bill is not something you need. Funerals in Australia cost anywhere from $5,000 to $15,000, which is the same as the payout amount of most policies. You can pay your funeral yourself for 60 cents per day if your family cannot afford such a large bill.
