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Funeral Insurance

Many people are beginning to realise that Funeral Insurance may end up being a very expensive way to cover the cost of a Funeral.

The NSW Minister for Fair Trading, Anthony Roberts has warned consumers about Funeral Insurance and has written to the Federal Treasurer raising his concerns (5 Sept, 2011).

Following an industry review, the Australian Securities and Investments Commission (ASIC) was of the view that ‘there was a risk that some consumers may be mislead’ by the advertising by the funeral insurance industry.

It is important that people understand the true cost of Funeral Insurance and the advantages of a Pre- Paid Funeral.

TV Advertising for Funeral Insurance only tells you what a younger person would pay for insurance. What they don’t tell you is that the price increases dramatically the older you get. An 82 year old can pay as much as $172 per month ($2064 per year) for $8000 cover. Many people drop out of insurance schemes because the price increases makes it unaffordable and of little value as they get older.

A review by consumer watchdog, CHOICE, found consumers were paying a lot more in insurance premiums than the actual value of the cover.

“A fifty year-old will end up paying over $140,000 in insurance premiums for a funeral worth $6,000”

Source: The $140,000 Funeral: The Pitfalls of Funeral Insurance, Combined Pensioners and Superannuants Association, March 2011.

Many people do not fully understand that when you stop paying the premiums, the insurance stops. There is no fund that builds up over time or that gets paid out when you leave. Because it is only an insurance policy, it has no value outside the insured period. You have to keep paying the increasing premiums to keep your cover.

As people get older they can’t afford the rapidly increasing premiums, they stop paying and end up with nothing after years of paying funeral insurance.

Pre-Paid Funeral

A Pre-Paid Plan is a more affordable and safer way to pay the cost of a funeral over time.

A Pre-Paid Funeral is a funeral that is paid for in advance. It details the type of service you want and is costed at today’s prices. Your money is held in an independent trust fund. The interest from the fund covers any increases in costs, so you will not be affected by any future price rises or premium increases.

Your money is securely invested in a State Government Regulated and Capital Guaranteed Fund specifically designed for funerals. The funds are invested in your name and managed independently by Lifeplan Funds Management, and can only be used to meet your funeral expenses.

How Much Does It Cost

A Pre-Paid Funeral allows you to arrange the service exactly how you would like it, and decide how much you want to spend. The service is costed at today’s prices, which is the maximum you will pay for the service that you choose.

A Pre-Paid Plan can be paid in a lump sum or by instalments over three years.

The interest on the investment covers any future price rises. So no matter when the service is needed the cost of your funeral will be covered.

A Pre-Paid Funeral allows you to pay for your funeral at today’s prices. The funds are invested in your name to cover the cost of your funeral – whenever it occurs.


  • No increasing Insurance Premiums
  • State Government regulated, Capital Guaranteed, Independent Fund
  • Lump Sum Payment or 3 years Interest Free terms
  • You arrange the service you want and how much you want to spend
  • Priced at today’s prices, no more to pay at the time of the service
  • No age or health restrictions
  • Income and Asset Test exempt
  • Tax and Social Security Advantages

If you are already paying Funeral Insurance speak to us about how we can arrange to transfer this to a Pre-Paid Plan and avoid future premium increases.

Contact us, day or night

Our staff are here to help, 24 hours a day, 7 days a week. Call us on 1800 886 489 and our staff will assist you.