Can I make the premium payments for the funeral insurance on behalf of my parents?

Posted on 17 December, 2017 at 19:25

Yes, no problem. Any person can make the premium payments and in fact we have a lot of family members who help their parents in this way. It is just set up at the time you apply for the insurance. Sometimes the person making the payments is also l the nominated beneficiary of the funeral insurance cover and this is perfectly acceptable also.

Both the payment method and the beneficiary can be altered at any time in the future.

The parent still must be the life insured (person to be insured) and sign the funeral cover plan application in this instance as they must sign off the declaration. But family members can. of course, assist as required.

Paul Woollame, Funeral Insurane Helpline

Who gets paid the funeral insurance money when I pass away?

Posted on 17 December, 2017 at 19:20

At the time you apply for your funeral insurance you will nominate who is to be paid when the time comes. This person will typically be your spouse, close family member or trusted friend. They will be the ones who are paid the sum insured so make sure they know about the insurance and have a copy on file.

You can also alter the beneficiary at any time in the future if your circumstances alter.

While it is nothing to do with the insurance we do find that at the same time as arranging the cover our clients tend to take the opportunity to discuss with the beneficiary what they would like to happen in terms of their own funeral arrangements. This does sound like a good sensible one-off discussion to have so that you know your intentions will be adhered to.

Paul Woollams, Funeral Insurance Helpline

Why are funeral insurance policies guaranteed acceptance with no health questions asked?

Posted on 17 December, 2017 at 19:20

Yes, most funeral cover plans are guaranteed acceptance with no regard for past or current health at the time of application. The reason for this is that they also have a two year stand-down period for claims for death from natural causes. So, for the insurers it is not so important about the current health.

All the main funeral insurers have the same stand down period. It is simply to ensure that someone who is very unwell and has a potentially short life expectancy cannot just insure and have a claim paid within a short time. If you do pass away from natural causes within the first 2 years there is a 100% refund of premiums already paid. So, you are in no worse a position financially.

The two year stand down period is something to be aware of however if you are in generally good health at the time of a funeral insurance application then for most the stand down period will not be an issue. Even if you become unwell shortly after a policy is taken out there is still a very strong chance you will be alive after 2 years given the advances of modern medicine.

Paul Woollams, Funeral Insurance Helpline

Do funeral insurance premiums get paid indefinitely until the time you pass away or do some have an age where cover continues but for free?

Posted on 17 December, 2017 at 19:15

There are many funeral insurance providers out there and the majority of them do have their premiums continue until claim time. So, if you live a great long life the total premiums paid can add up. Pinnacle Life, however, are one of the few exceptions as they have a policy benefit where you only pay until age 85 and then cover continues for free after that. AA have the same but at age 90.

This benefit is one of the best going around with funeral insurance. This ensures that you do not pay way more than the sum insured if you end up living to your late 80s or 90s. So, it is an ideal option for everyone but especially any one who is already in the 70s as they will have a very definite period of time to make payments which gives some peace of mind about the maximum cost you could ever incur (ie even if you live to 86 and beyond).

Ask us for quotes, we will be sure to include Pinnacle Life as one of the options for you. Compare them against any other insurers you have be considering.

Paul Woollame, Funeral Insurance Helpline

Can you buy funeral plans that have an age cut off point for premiums so you do not have to pay after a certain age but maintain cover till needed?

Posted on 17 December, 2017 at 19:15

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

Posted on 17 December, 2017 at 19:15

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

What are the age entry points for buying funeral insurance in New Zealand?

Posted on 17 December, 2017 at 19:15
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

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

Funeral Insurance or Life Insurance for over 60’s?

Posted on 17 December, 2017 at 19:05
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

Can I nominate a beneficiary to claim my funeral insurance money when I am gone?

Posted on 17 December, 2017 at 19:05
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