How Much Does Funeral Insurance Cost in Australia?

In case you are considering purchasing funeral insurance in Australia, it’s natural to be inquisitive about the cost you need to shell out. While the funeral director would take care of the formalities, you need to have adequate monetary arrangements.

With funeral insurance, the beneficiary receives a lump-sum amount when the policyholder passes away. This financial resource goes a long way in helping the family manage costs related to the funeral. So, when one of your family members has this policy, you can seek funeral services without stressing yourself financially.

Australians need to shell out a monthly premium to the insurance company. Depending on the benefits of the policy, the premium would vary. Normally, the policyholder can choose insurance where the benefits can range between $5,000 and $15,000.

What factors affect the cost of a funeral?

When one of your family members passes away, you would have to bear some immediate expenses. On average, a funeral in Australia requires the family of the deceased to shell out anything between $4,000 and $15,000. Now, this cost depends on several factors, depending on whether you decide to cremate the person or bury him/her.

So, the cost of funeral insurance would depend on the way in which you carry out the proceedings. Some of these aspects include:

Other aspects that decide the cost of funeral insurance

A number of factors decide the insurance premiums. These aspects are not directly related to the kind of ceremony you want to arrange. For instance, the age of the policyholder at the time of purchasing the insurance makes a difference in the premiums. The insurer would also consider whether the person is a smoker or not, the amount of payout required, and the type of premiums you would like to pay. Also, you need to consider the charges that you need to shell out to the funeral directors. Based on all these aspects, you can calculate the funeral insurance cost.

How much do you have to pay for funeral insurance?

In case you decide to purchase a funeral insurance policy at the age of 50, the average premium would range between $53 and $55 a month. Likewise, when you decide to go for this policy at a later age, the monthly premium would be higher. For instance, a 70-year-old would have to pay anything between $146 and $151 per month for the policy.

Having funeral insurance makes sense, as you won’t come under financial stress while arranging the last rites of your family members. Reputed funeral directors such as Paul Lahood Funeral Services provide cost-effective and comprehensive assistance to the family of the deceased. So, you won’t have to stress your pockets with professional funeral services available.