Summary: Many people in Australia purchase funeral insurance policy to safeguard their loved ones from unwanted spending at a later date in case of a death. Many insurers in Australia are offering insurance policies to cover funeral expenses.

How much amount will be offered in case of accidental death if I opt for funeral insurance?

Insurers will offer up to US$45,000 in case of accidental death.

What are the types of deaths covered under accidental death?

Death occurred due to accidents caused by vehicles, accidents at work places, drowned in water etc. You will be covered if the death occurs even at your home. However, such policies will not cover death due to illness.

Can I cancel my policy?

Insurers will allow cancellation of policy up to 30 years only. The policy holders will not get any get any refund if they cancel the policy after 30 days.

Can I include my partner in the Insurance cover?

Yes, it is possible. You will also get some refund on joint policies.

What age range do the insurers accept?

People who are aged between 18 and 79 years, can subscribe for this funeral cover.

What is the difference between level premium and stepped premium?

People need to check both types of premiums up to the age of 90 years. Insurers will provide free coverage above 90 years. Level premium will be decided considering your age at the time of application. The level premiums are bit higher than stepped ones but will not go up with increasing age.

Stepped premiums will be computed every year considering age at that time. Initial premiums will be lower, but will go up with increasing age.

Can I use funeral cover for savings?

No, It will not offer any savings benefits. It will only provide lump sum amount to your loved ones for funeral expenses.

What are the payment methods for funeral cover?

The policy can cover charges for cemetery, flowers, urn, casket and other expenses.

What is the maximum coverage for funeral plan?

You opt for coverage up to US$15,000. However, insurers will offer coverage up to US$45000 in case of an accidental death.

Will all type of deaths be covered immediately?

No, accidental deaths will be covered for the first two years. The policy will cover normal deaths after two years of subscribing to the funeral insurance policy.

Do I need to undergo medical tests?

No. The funeral cover does not require any medical tests.