What is the main purpose of funeral insurance?

Funeral Insurance is designed to specifically provide a cash lump sum to pay the costs associated with your funeral eliminating the financial stresses that may otherwise result.


When is the funeral cover money paid out?

Most insurers aim to pay within 48 hours of receiving the necessary evidence of death. The intention is to provide the cash before it is needed to pay the funeral director.


Can I nominate the beneficiary to receive the funeral insurance claim money?

At the that same time you apply for the insurance you nominate a person (or trust etc) who the money is paid to. This means no waiting for your estate to be settled; usually we recommend your spouse or one of your adult children. Where no family exists a trusted friend is suggested. You can change the beneficiary at any time in the future at no cost.


How easy is it to buy a NZ funeral cover plan?

It is probably the easiest of all insurances to buy as there are no health questions asked and acceptance is guaranteed. Depending on your preferred insurer you can buy online, by phone or a very simple paper application form. 10 minutes is about all you need to arrange funeral insurance once you have decided to proceed.


What age must I be to buy funeral cover NZ?

Typically the youngest for funeral insurance is age 30 at the time of application and it goes right through to being available at commencement age of 85. Each insurer has their own age entry levels, eg some are 30, some 50 or 55 etc.


How much funeral cover can I buy?

Each insurer has their own cover level range but you can buy NZ funeral plans ranging from $5000 to $30000.


How much funeral cover do I need?

This varies depending on your requirements. But based on our own clients over the last 12 months or so we find the vast majority insure for $7500 or $10000 as they feel that amount will be sufficient to meet all funeral costs. Other people choose more cover as the cash payment can be used for any purpose ie to clear other debt or to help with some travel cost for family members from further afield. Often it comes down to affordability.


Is their much fine print when it comes to funeral insurance?

Funeral plans are designed to be simple so the wordings are generally far more basic than most insurance and there are only a few exclusions. Really the only fine print with funeral insurance is the initial two year stand-down for death by natural causes. This applies the same with every main insurer and it is there to ensure the guaranteed acceptance is not prejudiced by those who are terminally ill buying cover and potentially claiming almost immediately.


Can I pay for my funeral cover weekly, fortnightly, monthly or by direct debit, internet banking or credit card?

This varies from insurer to insurer. No insurer accepts weekly premium payments, some accept both fortnightly and monthly while some only allow you to pay monthly. All insurers prefer payment by direct debit and some only allow that option but some do also accept credit card or internet banking / automatic payment. Best way to find out is to ask us directly as there are many variables.


Do some funeral plan nz insurers have cut off ages for premiums to be paid with cover free thereafter?

Yes, some do but many insurers have payment until claim required. One option charges premiums to age 85 with cover continuing free after that, another has age 90 that this occurs. Ask us for more details about these options.


Is it possible I will pay more for my funeral insurance over time than I receive in a claim?

Yes, this is possible if you live a long life and well over the average life expectancy, but that is a good thing right! On the other hand if you pass away sooner rather than later you may find you have paid much less in premiums than your claim amount is.


Can I cancel my funeral cover in the future?

Yes, you can cancel your funeral insurance at any time at no cost. But there is no forms of premium refund or surrender value. If you cancel you simply stop paying the premiums and the cover you had ceases.


Can I increase or decrease my funeral insurance NZ sum insured at a later date?

Generally yes you can increase your funeral cover at any time in the future, unless you are already at the highest sum insured level. Your premium would increase to allow for the extra cover (and also determined by your current age). However, the most important factor to consider is that any stand-down period would apply again for the extra cover amount (not again for the original amount). So, we always recommend it is best to initially select the most ideal cover amount at the policy commencement to avoid this future complication.

Decreasing your cover is even easier, as long as you are not already at the lowest sum insured level you can easily request a cover amount reduction in writing to your funeral insurance provider. Your premium will reduce as a result.


Who are the leading funeral insurance providers in New Zealand?

Generally when thinking about Funeral Insurance NZ the first names that come to mind are the Cigna Funeral Insurance, the AA Funeral cover and then there are a selection of other such as Pinnacle Life, Fidelity Life, AIA, State, AMI and Greenwich Life who have funeral plans that might suit. Some of these insurers are niche type who specialise in insurance plans such as funeral covers NZ.


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