Posted on 9 October, 2017 at 6:30

For Funeral Insurance in New Zealand there are absolutely no restrictions on how the claim money can be spent. Claims are paid out as a cash lump sum to the person who was nominated as the beneficiary of the funeral cover when the policy was commenced.

Some overseas style funeral insurance policies are tied to specific costs, so you have to present invoices to the funeral plan provider for reimbursement for the coffin, service, flowers etc. But there is no such requirement if you have a standard Funeral cover NZ. The cash can be used for whatever purpose, sometimes this even extends to helping family members if they have to fly in from overseas, clearing some small debt like credit cards or a loan.

As the money is paid to the nominated beneficiary to use it is important to choose this person carefully. Usually the beneficiary is a spouse, adult son or daughter or a trusted friend. Remember too that you can alter this person at any time if your circumstances change. Make sure you always give a copy of the funeral insurance NZ document to your trusted person so that when the time comes they know who the insurer is and have all the contact details, policy numbers etc.

We also suggest a one off chat occurs about what you want to happen at the time of your funeral. It is not a fun subject I know but better to sign off any final wishes in case you do not get an opportunity to do so later. Even simple things like cremation or burial, what sort of service you want are worth discussing just so there is no confusion later, maybe even after you are gone.

Paul Woollams, Funeral Insurance NZ