Posted on 24 January, 2018 at 2:30

We know that due to medical reasons it is sometimes not possible for the person needing to be insured to also be physically or mentally able to make an application themselves for funeral insurance. We often hear from family members wanting to arrange cover for those who may suffer from dementia (or similar) or some form of physical illness.

In most instances a person to be insured must sign an application form or if it is done online they must sign/tick an online declaration. So, this prevents some people beng able to do this. If you have full power of attorney you can sign an application form on behalf of that person. You can also be the claim beneficiary and the person to make payments. The insurance company would need a copy of the Power of Attorney document but that is really the only inconvenience. We can guide you through that process.

If a person to be insured cannot understand and sign documents plus there is no Power of Attorney then we do have an option for funeral insurance if they are aged 30 to 70. This insurer allows you to sign the documents as a ‘policy owner’ so in fact it allows you to arrange cover with little or no difficulty. The person being insured need not even know cover has been arranged. This is also good in some instances we come across where a person simply is not interested whatsoever in having cover but ther spouse or family may see things a little differently. In these cases the only criteria is that you are close family, usually a spouse, son, daughter, parent or sibling.

In the past we have had the odd instance of a family member signing up for standard funeral cover for another person, maybe their parents and they sign for them or do it online for them. This is not allowable and will invalidate any insurance as the declaration becomes invalid as it is not the insured person actually signing. It is often done with genuine intent but can cause major problems later. There is nothing wrong however with you are assisting / completing the online application for someone if they are present and next to you and they read the declaration area before the application is finalised. So, you can help then arrange funeral cover in this manner.

Paul Woollams, Funeral Insurance NZ