Funeral Insurance NZ Helpline

Yes, for many people it is important to know that you would not have to continue paying premiums well in to your 80's or 90's at the time it is probably most unaffordable (but realistically at the very time it is most needed). When you complete our on-line enquiry form we will advise which insurers have an age cut off point.

One insurer who we often find is a very strong option has premiums that cease at age 85 and has cover free thereafter. This is available for anyone who purchases cover before they turn 76. On enquiry we will advise more details of this insurer and comment about other options also.

An insurer that does not have this cut off point becomes very unfavourable if you have a very long life as premiums will continue right through to claim time. Where possible an insurer that ceases premiums at age 85 (or similar) will be very much in your best interests and will also keep long term costs down.

Paul Woollams, Funeral Insurance Helpline

There are a number of insurers who sell funeral plans in New Zealand. This includes some niche insurers who specialise in the area of funeral cover and maybe not some of the other covers like Life Insurance, Health Insurance or Trauma Insurance. Typically though funeral insurance is available to those aged 30 to 85.

Insurers do have differing rules to each other, while one well regarded insurer allows cover from age 30 some other well known funeral plan insurance policies are not available unless you are aged 50 or 55.

At Insurance Helpline we have all this information at our finger tips and can email you full details of this, and other industry information about funeral insurance, on request. For this information, and quotes, please complete our our online enquiry form.

Paul Woollams, Funeral Insurance Helpline

 

Funeral Insurance is designed to be paid out with 1-3 days after proof of the claim (death) has being received by the insurer. The very reason people buy this insurance is for the peace of mind knowing the money will be available to meet the costs of the funeral without any delay.

When purchasing funeral insurance you will nominate a beneficiary for the claim proceeds to be paid to. This is typically your spouse or one of your adult children, but can actually be anyone you trust to look after things for you once you are gone. Make sure the beneficiary is aware of the insurance and your specific funeral requirements. Leave them with a copy of the policy so they can ring the insurance company for instructions at the time.

Funeral pllans do not require any health questions to be answered so claim time does not have the typical delays associated with life insurance where the insurers need to extensively verify the death details and maybe consider the implications of any false declarations when the policy was taken out.

Really all the funeral insurer needs is to have proof of death, typically a letter from the presiding Specialist or a death certificate.

There is no need to be concerned about delays, even a few extra days for some unusual reason will not cause issues with the funeral directors. If they know the money is coming shortly they will be fine with everything.

Paul Woollams, Funeral Insurance Helpline  

What is better, funeral insurance or life insurance once you get older? Is one easier than the other to apply for?, is anything else different?

If you are currently aged 60 plus, and uninsured, the thoughts of how your funeral costs may be met do come to mind occasionally even for those in good health. No-one wants to leave the responsibility for meeting their funeral costs to their dependants.

Funeral Insurance is the easiest of all insurances to apply for. There are usually no health questions asked so acceptance is guaranteed as long as you meet the minimum age entry point requirements. For example some insurers require you be at least 30, 50 or 55 etc. So, in terms of ease there is nothing better. Just apply and it is done. They are mostly one page application forms and some can be applied for online in less than 10 minutes with cover then issued on the spot.

The other main difference with funeral cover over life cover is in the premiums. Funeral Insurance premiums are set for life based on your age at the time policy is set, so no unpleasant increases year by year.

Life cover is still an option for some, especially if you need more cover than to just cover funeral expenses, ie maybe you still have a small mortgage to clear at the same time. But to obtain life insurance you must disclose all health condition back to birth (yes, seriously!) so some people may not even qualify if their health is not great. And this becomes more relevant the older you are. And unlike the funeral cover the premiums will increase yearly.

Paul Woollans, Funeral Insuramce Helpline

At the time you purchase a funeral cover plan you nominate the person who will make the claim on your behalf. This person can be any trusted relative or friend, and the good news is you can easily alter to another person if the circumstances arise.

Typically the beneficiary will be a spouse or for single or widowed people it usually one of the adult children. This person will then need to prepare any information the insurer might need following your passing. But it is all quite straightforward and the insurer will credit their bank account with the sum insured within 1-3 days (usually) of receiving all required information relating to your passing. The beneficiary can then make all payments as you wish.

At the time of the funeral cover being put in place we always recommend that you let the beneficary have a copy of the funeral insurance policy to keep in a safe place so they have the insurance company contact details and phone number when required. That is also a good time to have good chat about what your wishes are so your beneficary can carry out what you want at the appropriate time.

Paul Woollams, Funeral Insurance Helpline