Funeral insurance
Is it right for you?

 

The beauty of life is that we never know when our time is up. It makes every moment precious. As we get older, having an end of life plan can help us feel at ease.

One thing you include in that plan might be making sure your funeral costs are taken care of. Funeral insurance is one option, but it may not be the best. Here’s why.

 

What is funeral insurance?

Funeral insurance is a type of cover you can purchase to cover the cost of your funeral. You pay for it in regular instalments, then when you die, your family receives a lump sum payment to pay for your funeral expenses.

Unfortunately, funeral insurance has its downfalls. Your policy may not cover everything and your family can be left paying the difference. You may also end up paying more in premiums than your funeral is worth in the long run, and there’s usually no way to get your money back if you cancel your policy.

But don’t worry, there are other options available. In this article, we’ll help you understand the pros and cons of funeral insurance and let you know about an option that might be a safer, more reliable choice for you and your family.

Pros of funeral insurance

  • Most insurance policies cover between $5,000-$15,000, so you can choose the level of cover you’d like
  • The funds are generally released to your nominated family member within 14 days, but often sooner
  • It covers most of the costs of a funeral, including the coffin or casket, urn, flowers and transport.

Cons of funeral insurance

  • Not all policies will cap your repayments, so you might end up paying more than your family will receive
  • If you stop making repayments or decide to cancel, you often won’t get any money back
  • Some policies may not cover you for accidental death
  • You may not be covered if you die outside of Australia
  • There may be other expenses relating to your death that your policy won’t cover
  • Your family may be responsible for covering any additional costs not covered by the policy.

Alternative to funeral insurance

A prepaid funeral may be a better option for you. It’s a great way to protect your family from the stress and cost of planning your funeral after you die.

When you pre-plan and pay for your funeral, you can say goodbye on your own terms. You can ensure your wishes are clear, saving your family the pressure of having to decide.

Prepaid funerals are becoming more and more common. We help families and individuals plan their funerals every day. And while it may seem like a daunting task, our experienced Funeral Specialists will make sure you feel comfortable taking this positive and proactive step.

Why Guardian Plan might be right for you

We partner with Guardian Plan to help people prepare for their final goodbye. With a prepaid Guardian Plan funeral, you can pay the cost of your funeral over time with the confidence that your repayments will never increase and your funeral service will be entirely covered.

Here are a few reasons why Guardian Plan might be the right option for you:

  • You can choose to pay in full or in regular instalments over a period of up to three years
  • Your prepaid funeral will be protected from inflation and rising costs, so there’ll be nothing extra to pay for you chosen funeral when the time comes
  • With your funeral planned and paid for, your family can focus on healing
  • Your investment is held safely in an APRA-regulated fund and is exempt from the asset test, so it may also help maximise your pension if you meet the ATO criteria.

We work closely with Guardian Plan to ensure things go smoothly when the time comes to say goodbye. We’ll make sure your family is supported through the entire journey. Our team will take care of every detail, giving your loved ones time and space to say goodbye.

Disclaimer: We recommend you obtain appropriate and independent professional advice before making any investment decision.

Guardian Plan is a funeral bond issued by the Over Fifty Guardian Friendly Society Limited (the Society) ABN 81 087 649 063 AFSL 524353. Proudly part of InvoCare. InvoCare is Australia’s leading provider of funeral, cemetery, crematoria and related services.

Proudly part of InvoCare. InvoCare is Australia’s leading provider of funeral, cemetery, crematoria and related services.

Ready to start planning?

Speak with a funeral specialist
Learn more pre-planning