Would you pay $140,000 for a funeral?

Would you pay $140,000 for a funeral?

“Daytime TV is overrun with funeral insurance ads claiming to provide ‘peace of mind for a cup of coffee’ but that piece of mind could end up costing $140,000”, said Antoine Mangion, CPSA Policy/Research Officer.

“Funeral insurance would have to be one of the biggest rip-offs around.

“The premiums may start off cheap, but they don’t take long to blow out. In the end, most people will pay many times more in premiums than the cost of their funeral.

“And to make things worse, if you can’t pay because the premiums become too expensive, your cover is cancelled and you lose all the money you’ve put in for premiums”.

CPSA warns people not to get caught up in the funeral insurance trap. 

“The last thing we want to see is Age Pensioners forking out tens of thousands of dollars for a $6,000 funeral”.

Read 'The $140,000 Funeral: Pitfalls of funeral insurance'

If funeral insurance is taken out at age 50 to cover a $6,000 funeral:

·         Premiums will cost more than the benefit by age 71

·         By age 90, the total spent on premiums would be $142,405

If funeral insurance is taken out at age 70 to cover a $6,000 funeral:

·         Premiums will cost more than the benefit by age 78

·         By age 90, the total spent on premiums would be $48,471

Contact: Antoine Mangion, Policy/Research Officer           

Mobile:  0405 233 144