- Typical suited for those aged 18 to 55 at the time of purchase, life cover can get very expensive,and have large annual premium increases, after age 55
- Ideal for those with debt such as a mortgage or if you have dependants who may benefit from having money to assist them day to day after your passing
- You must disclose all known health issues right back to your childhood at the time of applying for a life insurance, so cover may not be possible in some instances or there may be large premium loading’s based on disclosures
- Life Insurance can take some time to be paid out if there are issues with your will or the policy ownership of your insurance, more time is typically taken by theinsurers to validate the claim
Funeral Insurance or Life Insurance - the main differences explained
- Ideal for any age, but most commonly for those aged 50 plus, funeral cover premiums are fixed for life. Premiums do not rise as you age each year so nosurprises each year as you get older
- Ideal for those who just want enough money to pay for their funeral costs or maybe some little extra to clear small debt or fly people in from out of town
- There are no health questions on funeral plans so there are never any future health related non-disclosures to be concerned about, acceptance of your funeral insurance is guaranteed
- Settlement of your funeral insurance is typically made to your beneficiary within 48 hours of the funeral cover provider being given all necessary claim information
If you already have life insurance and you are considering a change to funeral insurance you may find that the amount of funeral cover you get for the same premium may be much less. Depending on your age the current life cover may still be more viable but the issue, which is very hard to determine, is what is best for you long term.
The life insurance premiums may rise as much as 15-20% per year once you are in your 60’s whereas the funeral insurance premiums you get quoted now will not alter each year as you age. So, short term you may feel it is better to keep your life cover but then in the medium to long term the situation will alter and the life premiums may simply become totally un-affordable.