The Difference between a funeral expenses cover and a funeral insurance policy

Funeral expenses cover will pay for the designated costs of a funeral up to the amount of cover selected. An invoice from a funeral director to support a claim will normally need to be provided and the invoice total will determine the amount to be paid. Should the cost of your funeral be less than the amount of cover you have selected, and paid premiums for, the difference is not refunded to your family. This can mean the total of the premiums payable could be far more than the amount of cover – in some cases consumers have paid premiums that total three times the amount of cover. Also, as the corporate regulator has limited powers due to funeral expenses cover not being subject to the provisions of the Corporations Act, some unscrupulous providers have targeted vulnerable consumers with unfair products and utilised unethical selling techniques to bully them into taking out policies.

In contrast, a funeral insurance policy contracts to pay an agreed benefit upon the death of the policy holder. The total of the benefit is payable regardless of the cost of the funeral. Sureplan is regulated by the Australian Prudential Regulation Authority and their authority extends to our funeral benefit funds, including Sureplan Family Fund our funeral insurance plan. As premiums are fixed and payable only until age 60, no member of Sureplan Family Fund pays more than 60% of their funeral benefit in total premiums.