Funeral Insurance in Australia: What You Need to Know
Thinking about how to cover your funeral costs in the future? You may have come across funeral insurance as an option. While it promises peace of mind, it’s important to weigh the pros, cons, and alternatives before committing to a policy.
At eziFunerals, we offer independent, unbiased advice to help you understand how funeral insurance works — and whether it’s the right choice for you.
What Is Funeral Insurance?
Funeral insurance is a type of policy that pays a lump sum to your family when you pass away. This payment can be used to cover:
- Funeral expenses (burial or cremation)
- Funeral director fees
- Transport, venue, or celebrant costs
- Headstone, flowers, and other services
- Debts or immediate household costs
You pay regular premiums (weekly, fortnightly or monthly), and your family receives the benefit upon your death — provided you’ve met the policy conditions.
Pros of Funeral Insurance
- Quick payout after death to help with costs
- Flexible coverage amounts (typically $3,000–$15,000)
- Some policies offer accidental death cover immediately
- May be suitable for younger Australians planning ahead
The Risks and Downsides
While funeral insurance may seem convenient, there are important drawbacks:
1. Premiums can exceed the payout
Many people end up paying more in premiums than the benefit their family receives — especially if they live longer than expected.
2. Cover may be cancelled if you miss payments
If you stop paying premiums, you may lose your cover entirely — with no refund.
3. Increasing premiums with age
Some policies increase in cost as you get older, which can make them unaffordable over time.
4. Limited benefit periods
Some policies only cover accidental death for the first 12 months.
Tip: Always read the Product Disclosure Statement (PDS) carefully.
Alternatives to Funeral Insurance
At eziFunerals, we often recommend lower-risk alternatives that offer better long-term value:
1. Prepaid Funerals
- Lock in today’s prices with a trusted funeral provider
- Centrelink asset-test exempt
- One-time payment or interest-free instalments
- No premiums, no surprises
2. Funeral Bonds
- Investment set aside specifically for funeral expenses
- Grows over time
- Exempt from Centrelink means test (up to a capped amount)
- Flexible and secure
3. Savings Account or Offset Fund
- Set aside funds in your own time
- 100% under your control
- No risk of losing money if circumstances change
Is Funeral Insurance Worth It?
It depends on your age, health, financial goals, and how long you expect to keep the policy. For some, funeral insurance is too expensive in the long run, while others may benefit from short-term cover or accidental death protection.
Before buying a policy, ask:
- How much will I pay over time vs. the payout amount?
- What happens if I stop paying?
- Are there better options based on my age and income?
- Can I lock in costs now with a prepaid plan?
How eziFunerals Can Help
We help you:
- Compare all your funeral funding options
- Understand the true cost of funeral insurance
- Connect with independent providers (not insurers)
- Get help planning a prepaid or low-cost funeral
- Find what works for your family — not the insurance company
We do not sell funeral insurance. We provide honest, expert guidance so you can make the best decision for your circumstances.
Talk to eziFunerals About Smarter Funeral Planning
Want to protect your loved ones without overpaying or risking cancellation?
Let us help you explore funeral finance, prepaid funeral plans, and alternatives to funeral insurance that make more sense for you.
Call: 1300 236 402
Email: support@ezifunerals.com.au
Visit: ezifunerals