What is final expenses insurance?

With so many types of insurance on the market, it can sometimes be hard to see the differences between them. We’ll take you through the basics of final expenses insurance, to help you figure out if it’s the right cover for you.

If you want to make sure your loved ones will be looked after in case something happens to you, there are a number of insurance options on the market. Most of them pay a benefit to your family if you pass away – but there are still some important differences between different types of cover.

And even if you have an idea of how life insurance and funeral insurance work, you may not be familiar with final expenses insurance.

What are final expenses?

We’d all like to make sure that when our time comes, our loved ones won’t be left with debts to pay. And with the price of a standard funeral today running into the thousands, wouldn’t it be nice to know that your family won’t have to liquidate your assets to foot the bill?

Examples of final expenses include:

  • Outstanding credit card balances and loans
  • Unpaid bills for things like rent, electricity and water
  • Funeral charges, including the costs of the burial or cremation, casket, ceremony, flowers and wake

Final expenses insurance can be used to help cover these costs, so you can leave your loved ones free from any additional financial strain or needing to sell your assets to meet those costs. There may even be a small amount left over from your payout to provide a parting gift to your children or grandchildren, or to help your partner through such a difficult time.

Who is final expenses insurance for?

If you’re an Australian resident aged from 18 to 79, you are guaranteed cover for Real Final Expenses Insurance, with no medical tests or paperwork. And you can get a quote or apply online in minutes.

Whilst not intended to be a replacement for conventional life insurance, it can be an option to ensure a minimum level of protection; for example, if you’re unable to get life insurance due to your age or a medical condition.

How does it work?

When you take out a Final Expenses Insurance policy with Real Insurance, you choose the amount that will be paid out if you pass away – from $3,000 to $15,000 – and, if you want, who you would like it paid to.

You’ll make regular payments for your policy, with the choice of a fixed or variable rate for your premiums. We’ll even pay 10% of your premiums back to you after you’ve held your policy for 12 months – we call it The Real Reward™.

If you pass away, your beneficiaries will get a quick cash payout, usually within one business day of receiving all the necessary documents, so they’re not left waiting for funds to come through. Unlike some funeral plans, there are no restrictions on how the money is spent, and they can use the payout however they see fit.

And with Real Final Expenses Insurance, your loved ones will get three times your chosen payout amount if you die as a result of an accident – up to $45,000. It’s one way to help your family if an unexpected tragedy should strike.

Some things you should know

  • Cover is for Accidental Death only in the first 12 months, then death by any cause thereafter.
  • The Benefit Amount automatically increases by 5% annually up to age 80 with a corresponding increase in premium annually but you can choose to decline this increase.
  • In addition, if you have selected the age-based premium option, your premium rate will increase on each Policy Anniversary if the oldest Life Insured on the Policy is aged between 44 and 80. While the oldest Life Insured on the Policy is younger than 44, or older than 79, your premium rate won’t increase due to age.
  • If you hold your Policy for an extended period of time you may pay more in premiums than the Benefit Amount, depending on the circumstances.
  • If your Policy is cancelled and cover ends, no Benefit Amount is payable, and there are no premium refunds after the cooling off period.

Find out more

To find out more about your insurance options and final expenses, request an information pack or get a fast quote online.

Real Insurance is an award-winning provider of funeral insurance.

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