How is Funeral Insurance different from Life Insurance?
Funeral insurance generally pays a single lump sum benefit that helps pay for you funeral, but generally doesn’t provide a sufficient level of cover to help support your family on an ongoing basis. Funeral insurance is more expensive alternative to Life Insurance when you compare the premium to the benefit you will receive.
What does the Funeral Advance Benefit cover?
Dealing with the death of a loved one can be one of life’s most stressful experiences. Coming to terms with the loss and planning a funeral is enough to worry about without the added concern of how to pay for the funeral service.
At NobleOak we understand that sometimes funds are needed urgently and without fuss. In the event of the insured person’s death, we will promptly advance $15,000 of the sum insured to assist with funeral expenses. This can help to lessen the financial stress at a very emotional time, and let your family focus on their grief without the added worry of budgeting for unexpected expenses.
The cost of funerals in Australia
Many of us only discover the cost of a funeral when it is our turn to arrange one for a family member or friend, and it can be confronting to find out how quickly the expenses add up.
Funeral costs start at around $4000 for a basic cremation, increasing to $15,000 or more for a more elaborate casket, ceremony and burial (ASIC). Some of the costs that need to be factored in when planning a funeral include:
- Funeral director fees
- Death certificate
- Burial or cremation
- Cemetery plot
- Celebrant or clergy
- Newspaper notices
- The wake
In the event of your death, your dependants or relatives will need to pay these expenses upfront. Even if you have a death benefit in your superannuation fund, it could take some time for it to be released, leaving your loved ones with a bill of thousands of dollars.
How is the Funeral Advance Benefit different to funeral insurance?
The Funeral Advance Benefit is a benefit under your Life Cover, whereas funeral insurance is a standalone policy. The benefit is an advance payment of your Life Cover benefit, and is not paid on top of your cover.
Funeral insurance generally pays a single lump sum that helps pay for your funeral, and that’s it. It doesn’t provide a sufficient level of cover to help support your family’s other financial needs. Funeral insurance can be more expensive than Life Insurance, when you compare the premium to the amount you receive.
By having the Funeral Advance Benefit within your Life Cover, it might eliminate your need for funeral insurance at all – as it gives you peace of mind that your family will be able to access immediate funds to pay for your funeral if you were to pass away.
How to claim the Funeral Advance Benefit?
The Funeral Advance Benefit is payable under your NobleOak® Life Insurance cover on receipt of evidence of age of the insured and a death certificate. Your funeral director should be able to provide you with a death certificate, if you are unsure.
To make a claim, call us on 1300 551 044.