InsuranceLine Throws Down Gauntlet on Funeral Insurance

InsuranceLine has issued a challenge to other funeral insurance providers, saying its new product will shake up the market and set new standards for the industry.

The new funeral insurance product from the direct insurance brand, which is backed by TAL, offers level premiums for the life of the policy and allows customers to cap premiums at 100% of the amount of cover provided. Once the cap is reached, the cover will continue for free.

Another key feature of the policy is the new Lifetime Protection Promise option. If a policy holder has maintained their funeral insurance policy for five years, with no over-due premiums, the beneficiaries are still eligible for a partial payout on the death of the insured person even if the policy has been cancelled or the policy holder stops paying premiums.

InsuranceLine’s latest offer comes in the wake of widespread criticism of the funeral insurance industry, particularly from consumer groups and funeral homes offering pre-paid services. In April 2013, consumer advocate CHOICE conducted a review of the products on offer, warning consumers to be very careful before signing-up. ‘Under some funeral insurance plans, you can end up paying more in premiums than the value of the cover,’ CHOICE said in its report.

In 2012, the Australian Securities and Investments Commission (ASIC) completed its own investigation, finding purchasers were likely to settle for the first product they found, and did not take value for money or long-term costs into account.

We heard that level premiums which don’t increase with age and a cap on the amount people pay for cover are important

TAL Group CEO and Managing Director, Jim Minto, said the new InsuranceLine product had been developed in response to consumer feedback. “We listened to customers and we have responded with a market-leading product that sets high standards for the industry. We heard that level premiums which don’t increase with age and a cap on the amount people pay for cover are important and we’ve made this the norm.”

“We’ve been developing this product for a long time and are very confident that it will bring peace of mind protection to millions of Australians who do not have readily available funds to cover the costs of a funeral.

“Our core belief is that every Australian has the right to be protected by insurance and this should be an affordable part of everyday life. No one knows when they’re going to need a funeral; but with funeral insurance cover, loved ones who are not in a financial position to pay for a funeral upfront will receive the financial assistance they need, even if only a fraction of the benefit has been paid in premiums.”