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Funeral Insurance Calculator

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Calculate funeral insurance costs vs self-insuring. Compare funeral bonds, insurance policies, and savings plans to cover end-of-life expenses.

Free to useNo data storedReal-time dataAI insightsUpdated: February 2026

The average Australian funeral costs $7,000-$12,000 for a standard service, and costs are rising annually. Funeral insurance provides peace of mind that your family won't bear this financial burden during an already difficult time. However, funeral insurance isn't always the best option — ASIC and consumer groups have warned that many policies cost more in premiums than the eventual payout. This calculator compares funeral insurance, funeral bonds, and self-insuring to find the most cost-effective approach.

Enter Your Details

Enter Your Details

Australian average funeral cost is $7,000-$12,000

$

Amount to cover funeral costs plus any additional wishes

Age significantly affects premiums — older age = higher cost

Smoking increases premiums by 50-100%

Compare different ways to fund funeral costs

$

Any money already set aside for funeral costs

Real-World Examples

Funeral Insurance at Age 55

Non-smoker, 55, wants $15,000 funeral cover.

Estimated premium: $40-$60/month. Life expectancy: ~30 more years. Total premiums: $14,400-$21,600. At $15,000 payout, you may pay MORE than you get back. Alternative: invest $40/month at 5% — you'd have $33,000+ in 30 years. Self-insuring is likely better at this age.

Funeral Bond for Age 70

70 years old, $12,000 funeral bond.

One-off payment of $12,000 into a funeral bond. Bond grows modestly (3-5% p.a.). In 15 years at 4%: worth $21,600. Centrelink assets test exempt (up to ~$14,000). No ongoing premiums, no risk of lapsing. Much more cost-effective than insurance at this age.

Frequently Asked Questions

Glossary

Funeral Insurance
Monthly premium policy that pays a lump sum to cover funeral costs on death.
Funeral Bond
A lump-sum investment earmarked for funeral costs. Exempt from the Centrelink assets test.
Prepaid Funeral
Paying for funeral services in advance at today's prices, arranged directly with a funeral home.

Disclaimer: This calculator provides estimates only and should not be relied upon for financial decisions. Interest rates, fees, and policies change frequently. Always verify information with lenders directly. This is general information, not personal financial advice. Consider seeking advice from a licensed mortgage broker or financial advisor.

Last updated: February 2026

How to Use
  1. Select the type of funeral and desired cover amount.
  2. Enter your age and smoker status.
  3. Choose your preferred approach (insurance, bond, or savings comparison).
  4. See the total cost of each option over time.
Key Information
  • ASIC warning: many funeral insurance policies cost MORE in total premiums than the payout — especially if taken out young.
  • Funeral bonds: a lump-sum investment earmarked for funeral costs. Exempt from Centrelink assets test (up to a limit).
  • Prepaid funerals: lock in today's prices, paid directly to the funeral home. Protected from creditors.
  • Average costs: burial $8,000-$15,000, cremation $4,000-$9,000.
Pro Tips
  • Calculate total premiums over your life expectancy — if total premiums exceed the payout, self-insuring is cheaper.
  • Funeral bonds are better than insurance for most people — they're a one-off payment, they grow modestly, and they're exempt from the Centrelink assets test.
  • If you already have life insurance, your funeral costs are covered — don't double up.
  • A prepaid funeral at today's prices eliminates inflation risk and reduces stress on family.
Avoid These Mistakes
  • Paying premiums for 20+ years that total more than the payout — always calculate the breakeven point.
  • Not realising that life insurance already covers funeral costs — if you have $200,000+ life cover, a separate funeral policy is unnecessary.
  • Letting a policy lapse after years of premiums — you lose everything you've paid.
  • Taking out funeral insurance for a young, healthy person — the total premiums over decades will far exceed the benefit.
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