Funeral insurance in Ireland

Funeral insurance provides a nominated person (e.g. your spouse) with the financial ability to cover your funeral expenses when you are no longer around. Read on to find out what you need to know about covering the costs of your service.

What is funeral insurance?

Funeral insurance can give your family a lump sum to cover the costs of your funeral after you die. It can also help take care of some of the arrangements of the service, which can help to ease some of the significant stress for your loved ones. What’s covered by funeral insurance varies a lot among providers and policies. So it’s very important that you read and understand fully the terms of your policy before you buy, to avoid passing any extra costs to your loved ones.

How can I meet the cost of a funeral?

You can use the following methods to cover your funeral expenses:

• Saving for a funeral. One way is to open a high-interest savings account and contribute a small amount on a regular basis. If you tell a close friend or loved one about the account, the money for your funeral will be there when they need to pay for a funeral plan directly with a funeral director.
• Pre-paid funeral plan. You can arrange this with your local funeral director and you will need to pay a little each month – or as a lump sum – until your funeral is covered. This will also allow you to make your preferred arrangements, so you’ll have the funeral you want when you die.
• Funeral insurance. This involves taking out a policy and paying regular premiums to maintain your cover. While some policies could cost you more than the cost of a funeral over time, if you look for an insurer who offers capped premiums and a pay-out guarantee, you will only pay the amount you want. Capped premiums mean that once you reach your chosen benefit amount, cover continues without the need for further payments.
• Life insurance. Funeral costs could be met through a pay-out from some types of life insurance policy.

When will – and when won’t – my family receive a payout?

Some criteria you’ll need to meet includes:

Why might I take out funeral insurance?

Funeral insurance is important to ensure your loved ones are not left with a financial burden when you die. Most funeral insurance plans in Ireland offer a number of benefits as standard. These could include:

• 1. Fast, simple application process. Funeral insurance is designed to be straightforward so you can apply quickly.

  • More information

    Features that make your application faster	Details
    Little to no medical underwriting	This is one of the main reasons people take out funeral insurance. There is high acceptance rate and usually no intrusive medical questions.
    Automatic acceptance	Many providers will accept you automatically if you are aged up to 75 (some insurers will offer cover with certain conditions following medical test).
    Easy application	This can be done online or over the phone, with no intrusive medical questions.

• 2. Flexibility in the way you pay. Funeral insurance offers features that can help you control how much you’ll pay for your insurance and how you will pay.

  • Examples

    What makes funeral insurance flexible	What exactly does this mean?
    A choice of stepped or level premiums	This means you can choose premiums that rise each year, or premiums that stay the same (but start at a higher rate).
    Cover limits depending on premium choice	How comprehensively you want to get covered will influence the cost of your policy.
    Continuation of cover / Premium waiver	Premiums cease when you reach a certain age (e.g. 90), after which cover continues for life.
    Flexible payment	This is the option to pay monthly or fortnightly at no extra cost.

• 3. Payout benefits. Funeral insurance offers various benefits in the way it pays out to your family.

  • Examples

    Payouts that benefit you	What exactly does this mean?
    A lump-sum payment	One payment designed to help cover funeral costs and other immediate expenses when you pass away.
    Fast payment	Most claims are generally paid out within two business days.
    Accidental death within the first 12 months	This allows your beneficiaries to receive the amount you insured if you die by accident within the first 12 months of taking out cover.
    Early payment benefit	This allows you to receive the full amount you insured early if you are diagnosed with a terminal illness after, typically after 12 months.
    Refund within the first year	If you pass away in the first 12 months and your death is not due to accident or self-inflicted injury, your premium payments will be refunded.

• 4. Features that look out for you. Many funeral insurance policies now have certain features to help you get the most value out of your policy and protect your from being ripped off.

  • Examples

    Features	What exactly does this mean?
    Guaranteed payout	You are paid out the greater of the sum insured or total premiums paid over the life of the policy, whichever is greater.
    Premium cap	Your premiums are capped when they reach the sum you originally insured e.g. €5,000.
    Guaranteed renewability	Cover continues as long as you continue to pay your premiums.
    Grace periods	If you’re policy is cancelled due to inability to pay your premiums, some policies allow a grace period (up to three months) where you can reinstate the policy.
    Global coverage	You are covered 24/7 anywhere in the world.

What expenses can funeral insurance cover?

Funeral insurance is designed to provide your dependants with a lump sum payment in the event of your death. This payment can be used to cover the different types of funeral costs, including:

• Caskets and urns.
• Cremations.
• Gravestones.
• Flowers.
• Funeral home service costs, including the venue hire, director fees, dressing and embalming.
• Transportation for close family members.
• Other wake service costs, such as food and drinks.

What happens if I can’t pay for my funeral?

A funeral can cost anywhere from around €3,000 to significantly more, and if you die unexpectedly without some means of paying for your own funeral, your dependants or relatives will be left with the cost. Your family will need to pay this money upfront, so even if you have a death benefit in your super, it could take some time for it to be released, leaving your loved ones with an immediate bill of thousands of euros.

If you think you’ll struggle to pay for the funeral, your Department of Social Protection’s representative at your local health centre may be able to help with an Exceptional Needs Payment.