Thousands of Australians have paid for funeral insurance policies that may not be serving a real purpose and financially causing them strain. Funeral insurance provides the option to save your family money and stress when the time comes. However, it may not be your best option as you end up paying much more in premiums in the long run.
Getting clear, helpful information to consumers at the time they make this decision is an ongoing challenge. Funeral Insurance can be misleading for consumers. Claimo is here to help consumers understand and obtain a refund when possible. Under some policies, as you get older the cost of funeral insurance will increase.
If you think that you have been ripped off by your funeral insurance policy, you can easily fill in our claim check form below. It only takes a minute!
Funeral Insurance is a type of insurance that you take out to cover the cost of your funeral after you die or to cover the costs of your family members death. Occasionally it will be called a “Funeral Plan” or “Funeral Plan Insurance”. Cover ranges from $5,000 to $20,000 to cover the cost of a funeral.
After you die this money is meant to be paid out to whichever nominated beneficiary or family member you selected. However, ASIC has found that many consumers who sign up for this type of insurance end up paying more in premiums over the life of a funeral insurance policy than they will receive in payouts when they do die.
On 1 October 2019 the Australian Government released draft regulations and legislation to take action on one of the recommendations from the Banking Royal Commission.
The Banking Royal Commission had heard terrible complaints from customers who had spent thousands of dollars on funeral policies that were found to be too expensive and often did not protect the consumer or cover a funeral service in its entirety.
There are two types of funeral insurance: funeral life insurance policies and funeral expenses policies. A person purchasing a funeral life insurance policy will nominate a benefit amount (usually between $5,000 and $20,000) that is paid upon a person’s death.
The funeral insurance policy is meant to pay for funeral costs up to the nominated amount. The actual cost of a funeral may be less than the limit of cover that the funeral expenses policy offers. These policies are not advertised as much and are often sold by funeral directors.
A legal loophole found identifies that funeral expenses policies are currently not a financial product.
They are therefore not covered by the same consumer protection laws as funeral life insurance policies. That is now going to change. The proposed changes will require providers of funeral expenses policies to hold an Australian Financial Services License. This will mean funeral directors selling these policies will no longer be able to sell these junk policies as easily and consumers will be better protected.
When a claim is successful, the financial firm will request your details to make a payment. Claimo work on a no win no fee bases and charge 20% plus GST on any amount settled.
We know that it can be intimidating making a claim against your financial firm and we take the stress out of the process. Claimo are experts in add-on junk insurance and know all the reasons why you should get your money back. You do not need to worry about dealing with the insurance company. Claimo will manage the whole process for you and give you regular updates. Our team are friendly and based in Melbourne, Australia. We’re real people!
The first stage of the process would be to check your insurance documentation. Don’t worry if you no longer have your documents, Claimo will request these for you!
We will send an information request to your banks and financial institutions to see if you have been charged for add-on funeral insurance or if you’re eligible for a refund.
If you have been charged, and are eligible, one of Claimo’s claims specialists will give you a call to discuss your eligibility. When financial firms confirm that you have not been charged for the insurance, we will close that part of your enquiry. We don’t charge if you do not have insurance.
Claimo will then submit a claim on your behalf and manage the process for you from start to finish. On average, the claims process can take around 12 weeks once your claim has been submitted.
Our claims managers will give you regular updates as they come.
DISCLAIMER: This article does not provide legal or financial advice. Any information in this article is designed to provide information to consumers who want to learn more about class actions. All information is general in nature. Claimo is not liable for any loss caused, whether due to negligence or otherwise arising from use of, or reliance on, the information provided directly or indirectly, by use of this service. Consider whether the service is right for you. If you are unsure, seek independent legal advice.