Funeral Insurance vs Life Insurance

Funeral insurance and life insurance policies both offer you a way of providing a financial safety net for your loved ones if you pass away – but they have some key differences. Getting to know those differences can help you identify which cover might be best for you and your family.

What is funeral insurance?

It could help cover the costs associated with a funeral. Apia Funeral Insurance is available to Australian citizens, permanent residents and New Zealand citizens living in Australia aged between 45 and 80.

With Apia Funeral Insurance, you’ll pay a regular premium for a fixed cover amount between $3,000 and $15,000. You can increase this amount to $25,000 once your policy is in place, subject to terms and conditions as outlined in the PDS. Your premium is calculated based on a range of factors, including the age you are when you take out your cover, and it won’t go up as you get older.

When you pass away, and a claim is made, your loved ones will receive a lump sum payment that can be put towards things like:

  • funeral cars
  • grave, clergy and chapel fees, or
  • settling your affairs.


Get a Funeral Insurance quote

What is life insurance?

Life insurance can help provide financial support for your loved ones if you pass away or become terminally ill. Like funeral insurance, you’ll pay a regular premium and — if a claim is made — your chosen beneficiary/ies will receive a lump sum payment. It can cover things like living expenses and mortgage or other debt repayments.

Your eligibility for life insurance cover is usually based on factors including, but not limited to, your age and medical history.

Differences between funeral insurance and life insurance

Here are some key differences between Apia’s Funeral Insurance and life insurance policies offered by other providers. Be aware, these details may vary and it’s important to do your own research.

How is it paid out?

When is it paid?

How much cover can you choose?

Who can purchase a policy?

When is a claim paid out?

Optional covers

What’s not covered

Apia Funeral Insurance

In a lump sum.

When you pass away, however there is an early payout option.

$3,000 to $15,000. This can be increased to $25,000 once your policy is in place.

Australian citizens and permanent residents, and New Zealand citizens, aged 45 to 80.

Usually within 24 hours of you making a claim.

Accidental Death Cover.

No payout if you pass away during the first 12 months (except for accidental death) and limited payouts on accidental death.

Life Insurance by other providers

In a lump sum.

When you pass away or become terminally ill, with an early payout option to cover funeral costs.

Usually between $100,000 and $1.5 million.

Australian residents aged 18 to 65 subject to your medical history.

It depends on your provider and policy type.

Optional covers depend on the provider, however they may cover you for cancer or other major illnesses.

Usually circumstances such as intentional self-inflicted acts, claims outside of special terms or if you’re in a country with a travel warning.

For the most up-to-date information about Funeral Insurance, be sure to read the Product Disclosure Statement (PDS). You can also get in touch with Apia Funeral Insurance specialists on 1300 340 655.

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Apia Funeral Insurance is issued by TAL Life Limited ABN 70 050 109 450 AFSL 237848 (TAL Life) which is part of the TAL Dai-ichi Life Australia Pty Limited ABN 97 150 070 483 group of companies (TAL). TAL is not part of the Suncorp Group. TAL companies use the Apia brand under licence from the Suncorp Group. The different entities of TAL and the Suncorp Group of companies are not responsible for, or liable in respect of, products and services provided by the other.

Any advice on this page in connection with the Life products is general in nature and is provided by Platform Ventures Pty Ltd ABN 35 626 745 177 AFS Representative Number 001266101 (PV). PV is part of the Suncorp Group and an authorised representative of TAL Direct Pty Limited ABN 39 084 666 017 AFSL 243260 (TAL Direct). General advice does not take into account your individual needs, objectives or financial situation. Before you decide to buy or to continue to hold a Life Product you must read the relevant Product Disclosure Statement. The Target Market Determination (TMD) is also available.