Although not perhaps the right context for some, I do find a lot of knowledgeable people on here so thought I ask if one can hold multiple funeral insurance policies in Australia?
My Mum unfortunately has been diagnosed with Liver Disease, she is ultimately my last parent and will use certainly use the 15k for a good send off.
As her life insurance is minimal & now limited, I know she will want to be proud of what she leaves so as they simply pay cash out, is holding 2-3 funeral policies legit?
…diagnosed with Liver Disease
I don't know if there's limits on the number of funeral policies, but you might need to disclose the details of the diagnosis at the time you apply to take up a new policy. The insurer may then refuse to insure, jack the premiums up to the point where it's just not worth holding the policy, add exclusions or a long waiting period related to the diagnosis.
You haven't mentioned how old your mother is, but it might be easier to take up further life insurance if she's under retirement age and is expected to pass before the maximum age of the policy (usually 65 or 75, depending on insurer).
is holding 2-3 funeral policies legit?
Yes you have have as MANY policies as you like, BUT read the PDS and they will all say the same thing, that they won't pay out if someone else has already paid out.
My Mum unfortunately has been diagnosed with Liver Disease
Sorry to hear, but as you now know this, you need to review the PDS for any old and new policies you have to make sure this known illness doesn't void the policy.
Thanks for all the informative comments guys.
She is late fifties, will enquire with her super fund to see if there is any chance of an increase in what minimal insurance she has but it does seem to be the case of it being written in the fine prints if one insurer has already paid out.
Obviously as MrHyde commented it will be important to see who the underwriter is which I believe there is only a couple in the market but are retailed out with multiple companies. Eg, woolies.
Canster mentions this online, but doesn’t expand on multiple claims.
You can also get funeral insurance policies with more than one insurer if different insurers offer different excluded conditions.
An insurer said previously that you can hold life insurance policies outside of your super if anyone can confirm this is correct & doesn’t cause issues upon claiming.
Alternatively get a funeral director to call and pre plan it all and pay in advance.
No claim submission required.
What if they go out business before the policy holder dies?
Unnecessary risk. Better to go through an insurance company.
Most, if not all insurance policies will have a clause in the PDS stating they will not pay out if there is another similar policy that would pay out.
Also, need to know who the underwriter is - pretty sure won't be possible at all if the policies are underwritten by the same company.