The premiums on two funeral insurance offers may differ by very little – their content can differ by a great deal more. This article is our working tool: the comparison table we use to set offers side by side. The premium is the last row, not the first.
- The table's nine rows capture the real differences – the gaps between offers on the market are surprisingly large.
- For every row, simply mark: better / the same / weaker – the overall picture emerges on its own.
- The premium only makes sense once the content rows are filled in: only then can you see what you're getting for the difference in price.
The first four rows: what does it pay, and when?
1. Sum insured and graded benefits: how large a sum can be taken out, and what the product pays in the first and second year for death from illness – this is where the biggest differences in the market show up. 2. Waiting period and its exceptions: how long it lasts, and exactly what it doesn't apply to (accidents; some policies carry other exceptions too). 3. Accident rules: whether an increased benefit applies, whether there's a built-in accident element. 4. Special benefits: an accelerated payout for a serious illness, a choice of funeral-arrangement services, the option of two insured people – where these exist.
The middle four rows: the long term
5. Health conditions: whether taking out the policy requires no declaration at all, or a simplified declaration – and what that entails. 6. When premium payments end: up to what age or for what term you need to pay – the differences can amount to years. 7. Indexation: automatic or offered as an option, what rises (the premium, the sum insured, or both), and whether it can be declined. 8. Non-forfeiture options: whether surrender is available, how paid-up reduction works, and the grace period and reinstatement rules.
And the ninth: the premium
Once the eight content rows have been filled in, the premium finally makes sense: you can see what you're getting for the difference. Rule of thumb: if one offer's premium is noticeably lower, the reason is typically found somewhere in the first eight rows – stricter early years, a longer payment term, weaker indexation. The goal isn't the lowest premium, but the content that best fits your situation, at a premium you can comfortably afford.
How do you use it in practice?
If you're gathering information yourself: ask for the terms and conditions document for every offer, and fill in the nine rows from that – the guide to reading the terms shows you where to find what. If you engage me: I fill in the table with the offers from the insurers worth considering, along with their strengths and weaknesses – the decision stays yours. The question-based version of the table – the questions worth asking any advisor – can be found in the question list.
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