How quickly do claims get paid under New Zealand funeral insurance cover plans? We would need the money quickly to pay for the funeral

Posted on 17 December, 2017 at 19:10
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