Funeral expenses insurance is a type of personal insurance plan that falls under the life insurance bracket in Australia. This type of insurance cover offers the family of the deceased policy holder a onetime compensation payment to pay for funeral expenses. This type of cover is meant to help the family of the deceased policy holder, when it is time to make funeral arrangements. This type of cover can prevent families from worrying about how to arrange for money when they are already grieving the loss of a loved one.
Why is Funeral Insurance a Must for People with Dependants?
People with dependants often believe that term life insurance and income covers are important however; they often forget to include funeral expenses insurance in the list of important insurance plans to purchase. While term life insurance plans pay a lump sum payment to the beneficiaries of the estate; these plans do not pay for funeral expenses unless specified by the insurer. This lump sum payment can take 3 days – 2 weeks to be given to the beneficiaries due to which the beneficiaries may have to make other arrangements to get money for the funeral. Since insurers in Australia understand that all claims for funeral expenses insurance must be approved quickly, insurers try their level best to accept all eligible claims and make the payment within 24 – 48 hours. Filing claims for funeral expenses covers is not a hard task and successful claims can be filed by everyone who follows the basic guidelines mentioned by insurers.
Why Purchase the Best Funeral Insurance Plan you Can Afford?
- Funerals in Australia can cost as less as $10,000 or as much as $35,000; depending on the services and the arrangements made. Funeral expenses insurance plans can make sure that your family doesn’t have to struggle to arrange for this money when they are already in pain over the loss of a loved one.
- Funeral plans are usually offered as add on covers along with term life covers, income covers or TPD and trauma insurance plan. Funeral covers do not cost much especially if you are purchasing term life insurance or another insurance plan from the same insurer. Some insurers also offer complimentary add on plans to eligible buyers while other insurers offer loyalty programs, non-smokers discounts and other discounts to eligible buyers.
Where Can You Purchase Funeral Insurance in Australia?
Funeral expenses insurance plans can either be purchased directly from an insurer of your choice through their website or this type of insurance plan can be purchased through an insurance comparison website. The main benefits of purchasing these plans directly from the website are few as compared to purchasing these plans from a comparison website mainly because insurance comparison websites give buyers the opportunity to compare plans from different insurers before making a purchase. This in turn allows buyers to get a plan with the lowest premiums and maximum benefits. Certain additional perks such as discounts or online offers can also be applied on funeral expenses plans when purchased online either from the insurer’s website or from comparison websites. Non- smokers, people with a healthy BMI and low risk buyers may be able to enjoy a range of other discounts when they purchase any type of personal insurance plan online.
5 Things You Must Know About Funeral Insurance Plans
There are a few eligibility criteria to purchase funeral expenses insurance plans. Australian buyers who are less than 80 years can get these plans provided that they are permanent Australian residents and they pay the premiums regularly. These plans can be purchased online and also via the phone either by calling the insurer’s helpline number or by calling the comparison website’s helpline number. Depending on the insurer you select, you may be given the option to purchase funeral expenses plan as a standalone or add on plan. If you already have an insurance plan such as term life insurance or income protection insurance plan from the same insurer, then you may be given a loyalty discount when you purchase a funeral expenses plan.
Depending on the insurer you select, your family may get a compensation payment that can range from $5,000 – $30,000. Usually insurers in Australia offer a lump sum compensation payment of $15,000 for standard plans. This payment is provided within 24 hours and insurers try their level best to provide this compensation payment as soon as possible.
If the policy offers an accidental death benefit, then the beneficiaries may be eligible to get a double compensation payment when a successful claim is filed. Some insurers may set a limit of $30,000 for this double compensation payment.
Additional perks such as a free will kit may be offered to buyers who purchase plans from selected insurers. Other benefits such as a 24 hours worldwide cover and a complimentary accidental death cover can be expected by purchasing plans from reputed insurers. If you are interested in getting a plan with these complimentary benefits, then contact the insurer before purchasing the plan and ensure that you have read the terms and conditions along with the fine print before signing the agreement.
Funeral expenses plans are considered a must for everybody with dependants. These plans are also a must for both partners, irrespective of the working status of the partners. Funeral expenses plans can reduce the financial strains families experience when they lose a loved one and have to pay for funeral arrangements when they are already grieving the loss of a loved and cherished family member. Since insurers understand that understanding the terms of the contract can be challenging for most people, both insurers and comparison websites offer details about the policy in plain English without using jargon or complicated words. In addition, some insurance websites may offer complimentary insurance advice to buyers who are interested in clearing doubts about the policy before they purchase a plan. If you want to get tax advice, personalized insurance advice or financial advice, then you may want to consider hiring an expert to help you get the answers you need regarding funeral insurance plans.