Financial comparison site Canstar says achieving adequate cover without paying very high premiums is a challenge when seeking funeral insurance products.

However, it says there are policies offering value for the over-50s.

“The key to funeral insurance is making sure you have enough cover for the cost of your funeral and the consumer doesn’t end up paying more in premiums over the course of their life than the policy will pay out to the estate,” Canstar GM Wealth Josh Callaghan said.

The comparator examined 18 products from 14 insurers, and asked a number of funeral insurance providers about the average sum insured.

Mr Callaghan says the average sum insured was about $7500-$8500 for people in their 50s, falling to $6500 for people in their 60s.

“The average sum insured is quite concerning, knowing that it would barely cover a budget funeral and its associated costs, let alone anything else,” he said.

According to the Australian Securities and Investments Commission, funerals can cost from about $4000 for a basic cremation to $15,000 for a burial.

But Mr Callaghan says more recent research puts the average cost of burial at $19,000.

Canstar says InsuranceLine and Let’s Insure offer outstanding value for money.

The former has won a five-star rating, for the third consecutive year, for its Funeral Insurance Advantage Cover, underwritten by TAL.

Let’s Insure has won the rating for the first time. Its products are underwritten by St Andrew’s Life Insurance.