What is funeral insurance?

If you pass away, funeral insurance pays a lump sum benefit to assist your loved ones with funeral costs and other related expenses. According to Moneysmart.gov.au, funerals can range from $4,000 to $15,000. Australians tend to take out funeral insurance if they believe their loved ones could not afford the associated costs.

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How does funeral insurance work in Australia?

To be covered by funeral insurance, you’re required to pay a premium regularly (e.g. fortnightly, monthly, annually etc.)  – the cost of which is influenced by your age, gender and your policy’s sum insured (i.e. how much your beneficiaries receive in the event of your death). Typically, cover in Australia ranges from $5,000 to $15,000.

Your eligibility for funeral insurance varies between providers, with the usual entry age ranging for Australian residents between 18 to 79. Again, depending on the provider, you generally do not need to undergo medical or blood tests to take out cover.

If a claim is made on your funeral insurance, the benefit amount will be paid to your nominated beneficiary (like your spouse or your child) to assist with your funeral expenses.

Not all funeral insurance plans are the same. Shop around and compare funeral insurance quotes before you sign.

Pros and cons of funeral insurance


  • Helps your loved ones afford funeral expenses.
  • Immediate cover.
  • Benefit indexation (i.e. your funeral payout amount increases in line with inflation. Some insurers allow you to opt out).
  • Generally, no medical checks necessary to get covered.
  • Can usually choose how regularly you want to pay your premiums (e.g. fortnightly, monthly, or annually).
  • Depending on the insurer, capped premiums may be available to ensure you don’t pay more in premiums than the cover amount.
  • It’s usually very easy to take out a policy if you meet the insurer’s age requirements. Many policies offer guaranteed acceptance.
  • You may receive discounts on a joint policy.



  • It’s possible you can pay more for premiums than your sum insured.
  • Premiums can be expensive, depending on the provider and the product you have, and can be difficult to afford if you’re heading towards retirement, or are already retired.
  • If you cease premium repayments, you’ll lose your cover and generally won’t receive a refund.
  • Stepped premiums may affect your ability to afford future repayments, as premiums increase as you grow older.



About eziFunerals

eziFunerals supports individuals and families coping with end of life decisions, death and funerals. We are an independent, Australian-owned and operated company. We are not part of any other funeral company.

Our member Funeral Directors operate in Sydney, Melbourne, Brisbane, Perth, Adelaide and Australia wide. They are chosen for their knowledge, quality, service, personalisation and experience. They go above and beyond, and will take the time to support the family.

For more information or to make contact with a trusted Independent funeral director, call eziFunerals on 1300 236 402 or visit www.ezifunerals.com.au.

The views and opinions expressed on posts are those of the author and do not necessarily reflect the opinions of eziFunerals and members. eziFunerals may receive commissions from Preferred Partners listed on our website. While every care has been exercised and the recommendations and other statements herein are based on information believed to be accurate and reliable, no liability, (unless required by law) can be accepted for any error or omission including negligence however caused.