Planning for the cost of your death is one of the hardest pieces of life-after planning you’ll ever do, but it’s sadly necessary as the average funeral can cost around $15,000^. Your grieving family may need some help with costs.
That means you need to be smart about how you spend your money. Should you go for funeral insurance or life insurance?. Figuring out your options early is sensible, and it’s better for your budget.
Compare Club's experts are trained to help you find good value life cover. Click below to get a quote or read on as to why life cover can offer better value than funeral insurance.
What if I take out funeral insurance?
A dedicated funeral insurance policy is one option for helping your family cover the costs of your final journey, but funeral cover can be an expensive mistake.
There are often large premium increases once you turn 50, and waiting periods apply for the first twelve months^. In the end, funeral insurance can end up up costing older Australians more than they’d actually pay for their funeral.
Basically, the longer you live, the more you’ll pay. Plus, you’ll lose what you’ve already paid if you cancel your funeral cover. Even the government’s own MoneySmart site cautions against funeral cover.
The good news is life insurance can be an affordable way to cover the cost of your final wishes without throwing your hard-earned retirement money into a black hole.
Why Life insurance trumps funeral cover:
Many life cover policies, that aren’t funded through your super, come with a funeral advancement.This means:
Your family receives a payout to cover the necessary costs .
You don’t need a separate funeral insurance policy.
The funds can be used for other end of life costs, like medical bills or hospice invoices, not solely for funeral expenses.
Funds can be released quickly, helping with cashflow at a stressful time for your family.
The experts at Compare Club Life Insurance assess policies from a range of Australia’s leading life insurers to find a policy that’s affordable for you, and includes funeral costs#.
Disclaimer:
The information contained on this web page is of general nature only and has been prepared without taking into consideration your objectives, needs and financial situation. As such, it is important that you consider the appropriateness of the advice and the relevant product disclosure statement (PDS) before proceeding. Any opinions expressed within an article are those of the author and do not specifically reflect the views of Compare Club Australia Pty Ltd. #Compare Club compares selected products from a panel of trusted insurers. We do not compare all products in the market.
