Consumer advocates warn of funeral insurance 'rort' that leaves customers paying more than it costs to bury them

David Cail had paid more in funeral insurance than his policy is worth. (ABC News: Barrie Pullen)

When David Cail was diagnosed with a serious illness in 2014, he was comforted by the fact he had already made plans to cover the costs of his funeral.

"I had seen ad on TV, and I thought being single, a funeral plan is what I need so the family wouldn't have to worry about it. So I took out a $15,000 policy in 2001," he said.