Insurance Blog

Funeral Insurance in New Zealand is designed as a hassle free, fast, cash payout to your nominated beneficiary

30 October 2017 12:11am

Funeral Insurance NZ (also known as funeral cover NZ, funeral plans NZ) is not an insurance type as common, or as well understood as life insurance, car insurance etc. But it is becoming more and more sought after as people start to realise what a straightforward insurance it is and how necessary the benefit is.

While we happily pay for our car insurance, house insurance and other types of cover the reality is that you may never ever claim on those covers. For example, this writer has not had a car, house or health claim in 30 years which of course I am extremely grateful for but it has been a lot of premiums I will never see again.

While not the best dinner table chat the reality is that my funeral insurance is a little different in that sooner or (hopefully) later a claim will be made and the benefit of the funeral insurance will be there for the family.

Depending on your life span you may pay less premiums than you receive in a claim (your sum insured) but if you have a very long life you may also pay a little more in premiums than your cover amount, but this is a good thing from a nice long life point of view.

We tend to recommend, where possible, funeral insurance covers where there is some cut off age for premiums ie there are options where you pay to age 85 and then cover continues for free thereafter. These covers help to lessen the odds of paying too much more in premiums than the sum insured.

People often do not realise that funeral insurance in New Zealand is guaranteed acceptance with no pesky health questions and that the premiums are also fixed at the time the policy starts so you never have to worry about future premium increases.

From our experience, claims are also paid quickly and easily as the policy does not have health declarations to verify as with the likes of life insurance. Claims are typically paid to your nominated beneficiary within 48 hours of all the required information being provided to the insurance company (as the requirements are not onerous).