The loss of a loved one is never easy and while experiencing this grief, there is often the added pressure of arranging a dignified send-off that honours them. If you pass away without a plan in place, it could add unnecessary financial strain on the ones you love. That’s why Funeral Insurance exists. It can help ease the financial pressure that may come from your end-of-life expenses, helping to provide some relief for your loved ones during an already difficult time.
How does Funeral Insurance work?
Dignity Funeral insurance is a policy that provides a lump sum payment of up to $15,0001 to help cover funeral expenses upon the insured person's death. Policyholders pay regular fortnightly or monthly premiums. In the event of the insured's passing, a claim is made, and the nominated beneficiaries receive the sum insured to help cover funeral costs, which can ease the financial burden during a difficult time.
Do I need Funeral Insurance?
A Funeral Insurance policy could be a simple way of ensuring that your loved ones have some financial help when you pass away. Here are some of the things you should consider when deciding if you need to take out Funeral Insurance:
- Your Needs: What type of funeral do you want? There are lots of choices available which include burial or cremation options, service type, coffins, whether you will offer catering services to attendees and lots more. How much would your preferred service cost?
- Premiums: It’s important to choose a premium you can afford, as you’ll need to keep up with payments to ensure your cover stays in place.
- Beneficiaries: Consider who it is that you would like to help protect from the burden of your end-of-life expenses.
- Inflation: Consider funeral costs in Australia. Will the cover amount you take out now be enough to cover funeral costs when the time comes, or will your loved ones need to contribute to the cost?
It is important that you consider your circumstances and make your own decision on whether funeral insurance is suitable for you and if you are unsure, consider seeking professional financial advice.
Am I eligible?
With Dignity Funeral Insurance, if you’re an Australian resident aged 50 to 80, you’re guaranteed to be accepted for cover. There are no medicals or blood tests needed for approval.
When should I take it out?
When you should take out Funeral Insurance depends on your individual circumstances and needs. It may be a good time for you to consider a policy when:
- You’re at a younger age: Starting at a younger age can mean lower premiums.
- Your budget allows: When you can comfortably afford the premium payments without straining your budget.
- You’re ready for peace of mind: When you want to ensure your loved ones are financially prepared for your funeral costs.
What are the benefits of Dignity Funeral Insurance?
We believe that there’s nothing more important than family. Which is why we designed our Funeral Insurance to help you protect yours. With Dignity Funeral Insurance, you can have peace of mind that your family will have some financial support during their most challenging times. Leaving you to enjoy life with them right now, with one less worry. Here's how we help you protect your family:
- Cash payout - Choose up to $15,000 of cover1
- Terminal Illness cover - 100% early payout for Terminal Illness, helping you plan your final wishes without worrying about financial pressures2
- Straightforward claims - Our claims process is designed to be simple, and our Australian-based claims specialists are on hand to help your loved ones with cover backed by an independent, Australian-owned insurer
- Guaranteed acceptance - If you’re an Australian Resident aged 50 to 80, you’re guaranteed to be accepted for cover
- Easy application - With our easy to arrange insurance, you can get coverage in just a few minutes over the phone with no medical or blood tests for approval
- Exclusive - Dignity Funeral Insurance is backed by an independent, Australian-owned insurer and is exclusive to us. You can't buy it anywhere else
- Designed to be affordable - Our cover is designed to be affordable and if you’re a non-smoker you’ll enjoy lower premiums4
- Trust - Dignity Insurance is part of a group whose brands have been chosen to protect over 500,000 customers worldwide and have ‘Excellent’ Trustpilot ratings3
- No more premiums after age 90 - From the policy anniversary following your 90th birthday, premiums are no longer payable but your cover will continue for life4
- Free Will Kit - Receive a free Will Kit when you purchase a policy
Some important things you should know:
- Dignity Funeral Insurance is an insurance policy, not a savings or investment plan.
- You may pay more in premiums than your benefit amount.
- Your benefit amount may not cover all your funeral expenses and associated costs, or the costs associated with a Terminal Illness. Inflation may also reduce its value over time. It is important to carefully consider the benefit amount you choose.
- Cover is for accidental death only within the first 12 months. After 12 months, cover is for any cause of death and terminal illness.
- If you change your mind within 30 days from the purchase date ("cooling-off period") and no claim is made, you may cancel your policy and receive a full refund of any premiums paid. If you cancel your policy after the cooling-off period, you do not receive your premiums back, nor will you be entitled to any benefit amount.
When will I be covered?
When you take out Dignity Funeral Insurance, you’ll have immediate double cover for accidental death. That means that from day one, your loved ones will receive double your chosen benefit amount if your death is due to an accident. You’ll only be covered for accidental death within the first 12 months. After 12 months, you’ll be covered for any cause of death and Terminal Illness, as defined in the Product Disclosure Statement.
How long does the policy last?
A funeral insurance policy generally lasts for the lifetime of the policyholder, as long as premium payments are paid. Dignity Funeral Insurance offers lifelong coverage. This means that as long as you continue to pay your premiums, it remains in effect until the life insured passes away, providing a death benefit to help cover funeral expenses when the time comes.
How much does it cost?
How much a funeral costs really depends on your own circumstances. Learn more about the cost of funeral insurance in Australia in our guide here. Here are some of the factors that can affect your premium:
Age:
The younger you are when you take out your policy, the lower your premiums will be.
Gender:
Your gender may impact premiums, with women often paying lower rates due to longer life expectancy.
Cover Amount:
The sum insured (the amount beneficiaries will receive) directly affects the premium; higher coverage amounts lead to higher premiums.
Smoker Status:
Smokers tend to pay higher premiums because of the increased health risks associated with smoking.