Funeral Insurance Options

This has got to be one of the most easy to understand insurance policies when it comes to what you are covered for and how much you pay in premiums. Funeral insurance is generally limited to smaller insured amounts, designed to pay for the last such as funeral costs, but could possibly be used for minor last expenses as well, such as legal costs.

How Funeral Insurance Works

You can choose an insured amount and the maximum amount may be different with different insurers.

The unique part about Funeral Insurance is, if the person insured dies within the first 24 months of taking out the policy and the death was not caused by an Accident, then the insurer will usually refund all the premiums you paid (see below) and this is not the case with other types of life insurance.

Otherwise, the insurer will pay the Funeral Insurance amount insured for the person insured, but deducting any outstanding total premiums due but not paid at the date of death of the person insured.

Funeral Insurance is a simple policy to understand and here are some main points to consider when deciding whether this is the type of cover you need.

  • It is generally easy to get but you can only insure for smaller amounts.
  • Premiums are normally fixed and do not go up with age.
  • If your current state of health disqualifies you from obtaining comprehensive life insurance, funeral insurance may be a good option for you.
  • It should not be used as mortgage repayment insurance or some other major debt repayment insurance.

When an insurer may not pay a claim.

Normally, the insurer will not pay if the person insured dies within 24 months of the start date, as a result of any cause other than solely and directly as a result of an Accident.

The upside is that the insurer may refund all the premiums paid by you. This may vary from insurer to insurer so please check with your insurer or contact us for advice. The insurer may refund all of the premiums you paid, if the insured person dies within 24 months of the start date of the insurance in the following circumstances:

  • As a direct or indirect result of an intentional self‐inflicted harm (whether sane or insane); or
  • As a direct or indirect result of the life assured suffering a major illness or health event (e.g. heart attack, stroke, seizure etc.) which gives rise to or contributes to the Accident; or
  • The Accident occurs after the date that the life assured has been diagnosed with a Terminal Illness.

Get the right advice

If you think this is the type of cover you or someone you know should have, please contact us for advice and pricing.

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