Can you have multiple funeral plans with different funeral insurance providers? Any benefit to doing this?

Posted on 17 December, 2017 at 19:30

There is no reason at all why you cannot have multiple funeral plans in place at one time. You can have one with every insurer if you really want, your only constraint is how much you can afford. Because of the unique nature of funeral insurance NZ, ie it being so easy to obtain, sometimes people feel having a second policy is good value. In saying this the normal reason we are told for doing this is that they require a funeral cover level over what one insurer might provide. For example for very large extended families and an expected high funeral cost, often with the added expense of flying in family members from other parts of NZ or overseas at short notice. Also, sometimes there is some extra debt that would be good to clear at the same time, say the small balance of a mortgage.

As the funeral insurance claim is paid out as a cash benefit the money can be used for any of these reasons.

Some companies have a maximum funeral insurance cover of $15000 so if you want more you would take a second policy. But as one policy for $25000 is normally cheaper than one for $15000 and another for $10000 it might be best to consolidate in to one that allows $25000 rather than just getting a second policy for $10000. But if you are cancelling an old policy to do this you must realise the new policy will have the stand-down period again for the entire cover amount. Also, any new cover has the entire premium calculated on your current (older) age.

So, while it is possible to have more than one funeral cover NZ it is worth discussing with a funeral insurance expert why you need this as they can guide you on the best way to achieve what you need without problems.

Paul Woollams, Funeral Insurance Helpline