Why you may need to consider funeral insurance on top of your will
29 October 2021
Protecting your family is important. But how can you best prepare them for your passing? A will, together with funeral insurance may help your loved ones financially when you pass away. On top of this, it may help ensure that your wishes are respected.
Some people may not like to think about their funeral, let alone discuss it. For others though, having a conversation about their funeral can actually be quite comforting, knowing they had a say in their farewell.
But planning a funeral is one thing. What about the financial expenses involved?
When it comes to looking after your loved ones, there are two options that may be able to help you financially - your will and funeral insurance.
The role of a will
Every adult may consider having a will. If you have any assets, having a will can help you decide who they go to, regardless of whether your assets hold monetary value or not. Consider the sentimentality of many family heirlooms. Wouldn’t it be nice to decide who they are passed down to?
A will is a legal document that allows you to outline how your assets are divided, who inherits your estate, cares for your child (if relevant) and who will be the executor of your estate. On top of this, a will can detail any specific gifts or legacies you wish to bestow, how your estate is managed and even how your funeral will be conducted. Wills can go into detail on whether you want a burial or a cremation, who you’d like to make the eulogy and whether you’d like a wake or service following the funeral itself.
But is it enough?
The value of funeral insurance
Funeral insurance is a lump sum payment made to your family when you pass away. With Suncorp Funeral Insurance, you decide whether you pay your premiums fortnightly, monthly or annually, and in return, when you pass away, your beneficiaries will receive a fixed cover amount of between $3,000 and $15,000. This sum can be used to pay for funeral expenses such as cars, grave fees, service fees, or anything else related to your funeral, or the benefit amount can be used to settle affairs, such as paying any outstanding debts.
Your premiums will be determined by a few things such as your cover level, payout amount, age, health and lifestyle. But, unlike other insurance types (Life or Income Protection), the premium amount won’t go up as you get older. Funeral insurance can be structured to suit you, your family and your circumstances.
When your family makes a claim, they’ll receive the benefit amount within 24 hours of the claim being approved, so there’s one less thing for them to worry about. With Suncorp Funeral Insurance there are also additional optional add-ons, some savings when you add a family member to your policy and Accidental Death cover.
Should I have a will and funeral insurance?
There are a number of reasons why Australians may want to consider having funeral insurance on top of a will. Firstly, a will may not necessarily cover funeral expenses. And while there may be some Australians who have access to a lump sum ready and available to cover funeral expenses, there would be many who don’t. On top of this, red tape around wills can take time. This could mean beneficiaries may not be able to access the assets straight away, meaning there may not be enough financial assistance to cover funeral expenses.
With funeral insurance, your family receives the lump sum within a day of a completed and approved claim. This can help alleviate the financial strain that may come from paying for a funeral.
At the end of the day, looking after your family is hugely important. Being prepared for the inevitable with a will and funeral insurance may help ease the financial burden that is often planted on the shoulders of those left behind.
- How to help cover the cost of your funeral
- What you need to know about funeral insurance
- Busting funeral insurance myths
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