Who are the leading funeral insurance providers and how do they differ between each other?

Posted on 8 June, 2018 at 04:50

If you watch a bit of day time television you will probably have seen more funeral insurance ads promoting the Cigna Funeral Cover and the AA Funeral Plan than you would care to remember. Those two funeral plans are the most widely advertised and as a result are likely to dominate much of the top of mind awareness of funeral cover providers.
Interestingly a number of the larger life insurance providers such as Sovereign, AMP, AXA do not actively promote funeral insurance, instead tending to promote mainly life insurance.
Some of the big name domestic insurers (the ones who mainly sell house, contents and car insurance) such as AMI and State do have products but again are not heavily advertised. In some instances the domestic insurers do not actually hold the cover themselves instead acting like a broker and placing the business with a specialist insurer. The big banks fall in to same category, placing cover with specialist insurers but just branding with their name.
Funeral Insurance is actually an insurance type quite popular with some of the smaller, or niche market, insurers such as Pinnacle Life, Greenwich Life, Legacy Life (underwritten by AIA). They provide some specialist offerings with benefits not usually offered by the more mainstream insurers.
Some of the other providers of funeral insurance include Partners Life and Fidelity Life which sells a funeral fund and a product known as Golden Life.
So, how do the likes of Cigna Funeral Insurance, AA Funeral Cover and Pinnacle Life Funeral Plan differ? Well firstly the premiums differ from insurer to insurer with Pinnacle Life currently the lowest premiums as a rule. The age entry points also differ with AA requiring you to be aged 50 to 79 at the time of policy commencement, Cigna Life 45 to 80 and Pinnacle Life 30 to 75. The maximum cover available at Cigna Life and AA Life is $30000 whereas it is $25000 at Pinnacle Life.
With AA Life and Cigna Life you will pay premiums to age 90 after which cover continues for free. Pinnacle Life has a similar benefit although their cut off age for premium is 85 (not 90).
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