You may have seen the commercials or been contacted by telemarketers spruiking the benefits of Funeral Insurance. This option needs to be carefully investigated.
For some people, funeral insurance may be a worthwhile option if it is claimed soon.
For most, it can become a costly expense for the remainder of your life.
The most important thing to consider when looking at pre-planning options is that funeral insurance is just that – Insurance.
You can pay ongoing, indefinite premiums which steadily increase the longer you hold the policy. So you can never be sure how much you will pay.
According to Foresters Funeral Society research, after only seven years of an insurance policy you will pay more in premiums than the actual cost of your funeral.
There are other factors to consider:
- Monthly payments are generally paid up to age 90
- Failure to make one monthly payment means the Insurance Underwriter can cancel your funeral insurance
- You receive nothing back if you stop making payments or if your policy is cancelled
- There are no pension advantages
- You have limited cover in the first year – accidental cover only
- You cannot select your preferred funeral director
- You cannot specify what you want in your funeral
- You cannot guarantee that your funeral insurance claim payment will be used to meet your funeral expenses.
There are alternatives to insurance where the money you invest is guaranteed to be allocated to your funeral expenses at a pre-determined cost. Our
Pre-paid Funeral Plans brochure can help you to make an informed decision.