Cigna Funeral, AA Funeral Insurance, Pinnacle Life Funeral plan are names we often hear as potential funeral insurance providers in NZ. What are the main differences?

Posted on 03 August, 2018 at 14:26

The broad basics of funeral insurance in NZ are the same. All funeral covers will pay an agreed tax free cash amount lump sum quickly to your nominated beneficary for the purposes of paying for your funeral (and related expenses). You choose an amount of cover suitable for your requirements whether it is just to pay for the actual funeral or if you require extra to clear some possible debt or in some cases we have people who wish to help family from out of town with their travel expenses (common with those who have extended family networks in the Pacific Islands).

So what are some of the key differences in the funeral covers offered?

The premiums definitely differ from insurer to insurer, and often by a lot more than you would imagine.  You must shop around.

Policy entry ages; AA Funeral Plan 50-79, Cigna Funeral Cover 45-80, Pinnacle Life Funeral Plan 30-75, State Insurance Funeral Insurance 30-75, Fidelity Life Funeral Fund 16-64

Cover amounts; AA and Cigna have maximums of $30000, others are limited at $25000 or some as low as $15000.

The age when premiums cease and cover continues for free; Pinnacle Life is age 85, Cigna and AA are age 90, many other insurers make you pay until claims time regardless of age

Some insurers have extras; for example if you buy Pinnacle Life Funeral Cover through our company you get an extra $5000 cover free if you happen to pass away resulting from an accident while overseas.

It pays to compare a minimum of 3 funeral plans (in some depth) before making any decision on what is best for you. What may be best for one person may not be best for another depending on their age, sex, smoker status or how much cover you want. For a more comprehensive comparison of 10+ funeral plans please click here

Paul Woollams, Funeral Insurance NZ