This year, for the first time, CANSTAR has researched and rated funeral insurance policies for those aged 60 and over. Funeral Insurance is an insurance policy where you pay monthly or fortnightly premiums for a fixed amount of cover to be paid out after death. This type of cover is a good option for those who can′t get life insurance with its inbuilt funeral benefits.
From our comparison of funeral insurance policies, NRMA stood out with its Funeral Insurance Accelerated payment product. The product was a strong performer across all the profiles assessed and represents value for money.
CANSTAR caught up with NRMA for a Q&A around funeral insurance costs and clais.
Q: Funeral insurance can be a fantastic safeguard for families. How long does it usually take to pay out a funeral claim, and what is the process for claiming?
A: Making an insurance claim should be quick, easy and hassle-free. NRMA Funeral Insurance allows loved ones to have access to funds generally within 24 hours of us receiving completed claims requirements.
A funeral is a time to say goodbye, not to worry about money. That is why the claims process is made as simple as possible and only involves us obtaining some very basic information to confirm that the customer has passed away and ensure we have the correct payment details for the policy holder.
Q: It can be difficult to know how much a funeral will cost. What are some typical funeral-related costs that need to be taken into account when deciding on an insured amount?
A: A funeral is a time for farewell so of course customers want it to be a special occasion whilst not becoming a financial burden for loved ones. The average cost of a funeral in Australia is around $8,400, however can cost as much as $15,000. Many people do not have that kind of money readily available to pay funeral expenses.
A lot of people also do not realise just how much is involved in a funeral. Some typical funeral-related costs include:
- The funeral director′s fee
- Transport such as a hearse
- Memorial book
- Doctor′s certificate
- Cremation/burial plot
- Catering for the wake
Q: Is there a typical age at which people tend to start thinking about their estate planning (and funeral insurance)?
A: Whilst there is no set age, a lot of our customers start thinking about what protection they should have in place as they approach their retirement. We speak with a lot of customers over 50 who are looking for some peace of mind and financial help for their families when the time comes.
Q: Do you have some customer feedback that you could share with us?
A: We are always touched when our customers take the time to thank us at such a difficult time in their lives.
We believe that it is our people who make the difference at claim time and our customers often talk about how our prompt claims payment, professional service and the compassion of our people makes things so much easier. Here are some thank you notes we have received from our customers.
“…Many thanks for the prompt service received at the time of [my husband′s] passing…In this day and age it is, indeed, nice to know that one is more than an account and number. Your personal touch and care was much appreciated….”
“The funeral claims team, May I thank you for all your help and understanding through a very trying personal time. You are a credit to your company and I will never forget your compassion…”
CANSTAR congratulates NRMA for winning CANSTAR′s Outstanding Value – Funeral Insurance Award. Our report and research into 14 eligible policies will help you make a more informed decision about what′s right for you; you can download the CANSTAR report here.