Funeral Insurance

As the name suggests funeral insurance covers just that, costs associated with your death - your funeral. It is an agreement between you and an insurer, which provides financial security for your funeral arrangements that you pay for in small regular installments for a specified lump sum payment on death which can be used towards funeral expenses or other unexpected expenses. Funeral insurance quotes will vary from company to company, so be sure to look around.

Why do you need funeral insurance?

Funeral Insurance & funeral plans can reduce the stress your family and friends face at a time of intense grief.

Funeral cover can allow you to put your affairs in order, and additional pre-planning on your part can ensure that you receive the funeral service you want. It also alleviates financial stress on your family if they were to pay and organize for your funeral themselves, and the risk on over-spending at a time when income may be quite scarce.

Benefits of funeral insurance

• Provides financial assistance for your family, from less than 80 cents per day*
• Stop paying premiums once you reach the sum insured (cumulative payments)

• First month's premium free

• Guaranteed acceptance if you are aged between 45 and 70 years
• Pays the full sum insured if death is caused by accident within the first 2 years of the policy only
• No risk - 100% refund of premium paid if death is not by accident or suicide in the past 2 years
• Provided you pay your low cost premiums when due, you will be covered until you die - no matter when
• No medicals

^*Based on a monthly premium of $23.93 for $10,000 plan for a male non-smoker aged 59 years (Zurich Financial 2009)

Compare funeral costs

If you do decide to compare funeral costs be mindful of inflation and it's affect on funeral costs in the future. Things like burial plots, cremation, and even funeral home costs will increase in line with inflation. Over a 10 or 15 year period, funeral costs may go up considerably.

Another way to ensure your funeral costs don't get out of hand is having a funeral plan. A funeral plan generally lists how you would like your funeral to proceed. Along with it you can explain whether you want a burial or cremation, and whether you want an extravagant or simple casket.

To fund your funeral costs consider taking out a funeral insurance plan or policy to cover these future costs.

What to do when your loved one dies

You will need a Death Certificate, as you cannot make funeral arrangements without it. A Death Certificate is the official registration of death and is signed by the doctor who pronounces the death and must be lodged with the relevant State or Territory Government office. In most States and Territories, this office is called the 'Registrar of Births, Deaths and Marriages'.

How you get a death certificate will depend on where the person died and the circumstances of their passing. If the person passed away from an illness at home you will need to contact the doctor to sign the death certificate. If the doctor cannot sign the paperwork or if there was no known illness, then the police must be called and the deceased will need to be transferred to the Coroners. If the person passed away in a nursing home the staff will contact the doctor for you and then notify you when the certificate has been completed. If the death happens in a hospital the attending doctor will usually issue the death certificate.

Gather the paperwork you need to make a funeral insurance claim

The paperwork you typically need to make a funeral cover claim includes:

• A Death certificate
• A certified copy of the deceased's age
• A certified copy of proof of your identity and your relationship to the deceased
• The original policy document and policy schedule

Exclusive Offer! Call xLife on 1300 135 205 today and
get your first month's premium FREE on your funeral insurance!

May 2011