In simple words, funeral insurance is a lump sum of money that is paid to your family in the event of your death to cover all the funeral costs. This is a big relief because funeral these days are really expensive and can cost you somewhere around $4,000 to $14,000. When you know your family will receive this kind of money to carry out your funeral, you don’t have to worry about leaving your family in any sort of financial burden.
A funeral insurance policy can allow your family to arrange the venue, choose a casket, hearse, flowers and a priest of their choice in order to carry out a decent funeral service without having to fear that your death will cripple them financially.
How Does Funeral Insurance Work
Funeral insurance works the same way as any other insurance. You have to pay a monthly premium based on the level of your cover and age. In Australia, any resident aged 18-79 is eligible to apply for funeral insurance. You can also select a single or joint plan for your partner or spouse. Most of the funeral insurance policy premiums tend to increase with the age of the insured person. However, your premium is subject to a reduction by 5% after every 5 years if you continue to hold your policy.
Funeral insurance act very quickly. You can be assured that in the event of your death, your family will have access to cash soon after the submission of the necessary documents. If the insured person dies an accidental death, the proof of his or her accidental death will have to be submitted to the insurance company. And if there’s such an inclusion in your policy, your family will be entitled to receive triple the amount of the benefit in this case.
How to Choose the Funeral Insurance Policy
There are few things that you must consider before purchasing a funeral insurance policy. You can visit freedominsurance.com.au/products/funeral-insurance for more details. But basically, following these steps will help you select the most suitable funeral insurance policy for you:
1- You must calculate your final expenses: assess the cost of your funeral and include everything that you want at your funeral. Remember to include the expenses of transportation and memorial service also.
2- Decide how fast your funeral payout must be: there are options you must consider regarding the funeral payout that your family or the beneficiary of the policy will receive in case of your death. You can choose the policy that can be cashed within 48 hours of your death.
3- Compare funeral plans: compare several funeral cover options so that you know which insurer is offering you what in terms of entry and expiry age and the level of cover.
4- Review quotes: Collect quotations from several insurance companies to check if the premiums are adjustable to inflation or not. And if the policy is meant for short term or long term affordability.
Choosing a funeral insurance policy based on these tips will help you select the policy that best suits you and will provide your family the convenience of carrying out your funeral service in the desired way.