Funeral Insurance FAQs

Funeral Insurance FAQs


Find answers to some of the most commonly asked questions about funeral insurance below. You’ll find information about what funeral insurance is in general, plus information specifically related to the cover we provide Apia customers.

At Apia, we specialise in providing insurance specifically designed for people over 50. Our funeral insurance exists to help you feel more relaxed, knowing there are plans in place for your family.

Questions about funeral insurance

What is funeral insurance?

Funeral insurance is a low-sum, insured, life insurance product. It is designed to help protect your family from having to cover your funeral costs and other related expenses in the event of your death.

It works in a similar way to other insurance policies you may have. You choose how much you think your family will need to pay for your funeral, and pay premiums to cover that on a fortnightly, monthly or yearly basis.

In the event of your death, the person you choose as your nominated beneficiary will receive a lump sum of money known as the Funeral Benefit, which will help ease the burden of paying and organising your funeral.

Plus, thanks to the Apia Value Promise, you can be rest-assured in the knowledge that your family won’t ever receive less than the amount you’ve paid in premiums when it comes to claim time.

Why should I get funeral insurance?

Funeral insurance is designed to help you look after your family after you have passed away. In the unfortunate event of your death, it ensures your loved ones will have fast access to the cash to cover the expenses of your funeral.

According to, funerals in Australia can cost anywhere from $4,000 to $15,000 – a significant amount for many families to find at short notice. Taking out funeral insurance is one step you can take to help ease their burden – plus you can relax knowing there are plans in place.

What is the difference between funeral insurance and a pre-paid funeral plan?

Like other insurance policies you may have, funeral insurance involves paying a series of premiums on a fortnightly, monthly or annual basis. You choose the amount of cover you’d like and your premiums are worked out accordingly. In the event of your death, your chosen beneficiary will receive a lump sum of cash to help cover the costs of your funeral.

A pre-paid funeral plan involves choosing and paying for your funeral in advance. Costs are fixed, but prepaid funeral plans can be inflexible, particularly if you move to another state to live with your family.

Why should I choose Apia Funeral Insurance?

As well as peace of mind, a policy with us offers the following benefits:

  • Our Value Promise – We promise that your loved ones won’t receive less than the amount you’ve paid in premiums when it comes to claim time
  • Our Early Payment Benefit – In some circumstances, we are able to pay you the insured sum early
  • Our choice of payment options – Choose between stepped and level premiums when you take out a policy with us (read on to find out more about these options)
  • Quick access to your money – We will usually make the payment to your beneficiary within 24 hours

Find out more about Apia Funeral Insurance, or get a quote today!

How much funeral insurance cover do I need?

The amount of cover that’s right for you will depend on you, your family’s circumstances, and the type of funeral you’d like. suggests that funerals can cost anywhere between $4,000 for a basic cremation to around $14,000 for some burials.

With Apia Funeral Insurance, you can choose cover between $5,000 and $15,000 for level premiums, or up to $30,000 for stepped premiums. You have complete control over the insured sum within these boundaries. When choosing your amount of cover, consider the sort of funeral you would like, and how much money your family will need to help make that happen.

What are stepped premiums?

One of the payment options we offer our customers is stepped premiums.

Stepped premiums are calculated according to your age, gender and the sum insured each year the policy renews. This means you can begin by paying lower premiums, and then up your premiums each year as you get older.

You can apply for up to $30,000 of cover with a stepped premium.

What are level premiums?

The other payment option we offer our customers is level premiums.

With level premiums, the amount you pay is worked out on your age when you take out the policy, as well as your gender and the sum insured. Although your initial premium will be higher than a stepped premium, it will not increase each year.

Please note: A level premium will not increase because of age, but will rise due to any increase in the sum insured as a result of the Automatic Indexation Benefit. The Automatic Indexation Benefit increases your sum insured each year in line with inflation (to a maximum of 10%) and your premium will increase to reflect this.

How does the Value Promise work?

Our Value Promise ensures you will never pay more in premiums than your loved ones will receive at claim time (the Funeral Benefit).

At claim time, we will compare your sum insured to the total amount you have paid in premiums and, if eligible for payment, we will pay whichever amount is greater.

When can I claim the Early Payment Benefit?

If you become terminally ill, you can choose to take the Early Payment Benefit. This means you will receive the sum insured, enabling you to get all your financial affairs in order.

Can I decide who will receive the Funeral Benefit?

Yes, you can nominate one beneficiary to receive the Funeral Benefit (the lump sum paid out at claim time). If you have a joint policy, you can still nominate only one beneficiary, which must be agreed by both insured persons.

If you choose not to nominate anyone as your beneficiary, any benefit payable will be paid to the surviving owner or to your estate, whichever is applicable.

How many people can be covered on this policy?

If you take out a policy with us, you can insure up to two people on each policy. Each insured person is considered a policy owner.

Covering two people on the single policy means there’s a single policy number, less paperwork and a 20% family discount.

Can I apply for a policy on behalf of someone else?

If you are the insured person, you will always be the policy owner. However, the person who pays the premium does not need to be the individual insured. In both cases, the insured person still remains the policy owner.

We have a joint policy. Can we separate it into two single policies?

Yes. If you choose to do this, one owner will keep the existing policy and a new policy will be issued for the other policy holder.

This means the 10% cash back benefit (a 10% refund of the premiums you’ve paid once the policy has been held continuously for three years) will start afresh for the new policy. Any cash back accumulated on the existing policy will not carry over to the new policy.

Do I have any options if I find the policy too expensive or if I am going through any financial difficulties?

For stepped premiums, the Premium Freeze Benefit allows you to stop any increase to your premium as a result of your age. This means your premium will remain the same and your sum insured will reduce each year.

For both level and stepped premiums, the Premium Pause Benefit allows you to stop paying premiums for up to three months over the lifetime of your policy. While the premium is paused, cover is provided for accidental death only.

Are there any reasons my funeral insurance policy won’t pay out?

The Funeral Benefit will not be paid if you die in the first 12 months of your policy due to an accident that occurred prior to the start of the policy, a sickness, or an intentional self-inflicted act. If this happens, we will refund all premiums paid under the policy.

Are there any discounts available?

There is a 20% family discount available for immediate family members who purchase Apia Funeral Insurance. This also applies to joint policy owners – so if you and your partner take out a joint policy, the 20% family discount will be applied.

If you choose a stepped premium policy with a sum insured of $20,000 or more, a 10% discount will also apply.

We also offer a 10% cash back benefit. Once you’ve held your policy for three continuous years, you will receive a 10% refund of the premiums you have paid. If you continue to hold your policy, we’ll do this every three years.

How often do I need to pay premiums?

You can choose to pay your insurance premiums in a way that best suits you and your finances. You have the option of paying your premium fortnightly, monthly or yearly, at no additional cost.

Find out more

How do I get a funeral insurance quote?

Getting a quote from Apia is quick and easy. All you need to do is fill out our online quote form and you’ll receive a quote in less than 30 seconds. You can purchase online and there are no medicals required.

Get a quote now

What happens if I want to make a claim?

If you wish to make a claim, the policy owner, nominated beneficiary or legal personal representative can contact us on 1800 608 549. We will then send a claim pack that needs to be completed to our satisfaction and returned.

Where can I find out more?

You can find out more about the service we offer on our Funeral Insurance page.

For full details, please refer to the Apia Funeral Insurance Product Disclosure Statement and Policy Document (20/10/2014).

Alternatively, you can contact us – we’ll always be happy to help.

I’m a NZ Citizen, can I apply for this insurance policy?

Yes, Australian and New Zealand Citizens and permanent residents, residing in Australia at the time of applying for the insurance policy can apply.

I’m a NZ Citizen and have an insurance policy with you, will I be paid if I need to claim?

Yes, as long as you meet all the requirements of your policy you’ll be paid your benefit.

Is Apia a signatory to the life insurance industry’s code of Practice?

When you take out life insurance, it’s important that you get the highest standards of service in all your dealings with us. That’s why we have adopted the Life Insurance Code of Practice. It’s the life insurance industry’s commitment to mandatory customer service standards and it’s designed to protect you, our customer. Find out more.