Financial services researcher Canstar says the main challenge for consumers seeking a good funeral insurance policy is knowing what to look for.

GM Research and Ratings Mitchell Watson says funeral insurance “can be a terrific product, but there are a number of potential traps”.

Canstar has awarded NRMA Insurance and life, income and funeral cover specialist InsuranceLine its top rating for their funeral insurance products.

It is the second time the two have won the top award after Canstar reviewed 19 products from 15 providers.

“Both products offer an impressive combination of competitive price and, most importantly, good features,” it said.

Mr Watson says people seeking funeral insurance should look for features such as capped premiums and excess premium refunds.

“It’s certainly not the case that all funeral insurance policies were created equal,” he told insuranceNEWS.com.au. “It is a case of buyer beware.”

The research into funeral insurance products found that despite controversies over the affordability and value of funeral insurance, policies offering value for the over-50s market do exist.

The average monthly premium for a female non-smoker aged 52 is $40.10 while for the equivalent male premium it is $42.75.

A female smoker of the same age would pay an average of $45.40, while their male counterpart’s premium averages $50.67.