A funeral insurance policy is just the thing for you if you don’t want your family to worry about the burial expenses. However, before purchasing such a policy you need to consider its coverage to get a better idea about what you are buying and how it can help you and your loved ones in the future.

Since freedominsurance.com.au is a renowned insurer in Australia. You can purchase a funeral policy from them without any second thoughts.

Funeral insurance covers the costs of funeral procession, casket, headstone, the cemetery plot and funeral service. To help your family avoid the burden of these expenses, you can get funeral insurance beforehand.

Accidental Injury Benefit

Under this coverage, you will receive financial support in case you have an accident involving a serious injury, such as plegia (stroke), loss of hearing or speech, major head trauma, major burns, blindness, or any other injury. Depending on the extent of the injury, you can receive up to $50,000.

Child Cover

The insurers will cover the funeral expenses if you have child cover and your kid passes away due to an accident or any other cause.

Even if your child had a serious injury or illness, like major head trauma, meningitis, deafness, blindness, or paralysis, you will receive benefit from child cover. Normally, this coverage is an optional choice for buyers of funeral insurance policies.

Sum Insured Within Funeral Insurance

In the product disclosure statement, you should look for a key thing which is the sum insured. This tells how much amount is insured. The level of your cover will determine the benefit payout which is the money received after a death.

Difference Between Stepped and Level Premiums

You may either opt for a stepped premium or a level premium. The premium rate and the amount of your benefit determine the calculations of your payment of premium.

When you choose stepped premium, you will pay according to your current age. Normally, the rate increases as you get older. Make sure to plan for the future by looking at the premiums. If you can’t afford that cost at a later stage in life, it’s better to opt for some other policy.

In a level premium, the amount that you have to pay remains constant in your entire life. Usually, the insurance premium is higher when you buy it. Changes to the fees of the insurer or inflation adjustments can increase level premiums.

A dedicated savings account, a pre-paid funeral, or funeral bonds can also help in covering the costs of funerals. Perhaps the main benefit of funeral insurance is that the amount is fully paid once a person makes a claim, normally within a day or two.

If you worry about your family, or think that they won’t be able to pay the high costs of funerals, then you should consider getting a funeral insurance policy with the right kind of coverage.