Leaving funeral insurance too late can be a costly mistake
The Australian Securities and Investments Commission (ASIC) released a study they commissioned into the decision process undertaken by consumers when choosing how to fund their future funeral expenses.
The research found that many people undertake very little research and therefore are not aware of all the options available. Those who take out funeral insurance with some of the highly advertised plans are often not aware of the escalating premiums, the total cost of their policy and the consequences of not paying premiums.
This again highlights the cost savings for consumers who obtain cover with Sureplan Family Fund earlier in life.
For anyone aged 55 or younger Sureplan Family Fund is a cost-effective option because:
- Premiums are fixed, and
- Premiums are payable only until age 60.
As a comparison: Under Sureplan, a 40 year old taking out $10,000 cover will require just under $5,000 in premiums to be paid. With other funeral insurers that require premiums paid until age 90 the same level of cover could be costing between $25,000 – $30,000 (depending at which age the policy is taken out).
The ASIC report can be found on the following link; www.asic.gov.au/asic/…nsf/…/rep292-published-19-July-2012.pdf