Posted on 30 November, 2017 at 5:25

While most people purchase more conventional funeral insurance that have monthly or fortnightly premiums paid long term (ie until death) there are some people who prefer to make premium payments over a shorter time frame. We have access to a funeral cover NZ with a sum insured of $12000 where you pay for just 10 years. After that time the cover continues free until you need it.

The premiums for this type of funeral cover are more epensive than those funeral plans NZ that are pad until your passing. The reason is obviously that the insurer must collect the sufficient amount of premium in 10 years that they might otherwise be collecting over a longer time. So you typically pay at least double what you may pay for standard funeral insurance during that 10 year period. .

This typically suits someone who might still have a reasonable income for an expected period and is then able to speed up the payment provison to get it out of the way before their income becomes more limited. Few of our clients have bought this cover for any other reason.

There is one potential downside and that is if you were to pass away within 10 years you would have potentially paid more than double the premiums than for standard funeral cover. This is a risk you have to access. Of course it works the other way too, if you live a very long life you safely have cover at no ongoing cost for many years.

For this reason we tend to find that this type of funeral insurance is most suited to people aged 40-55 at the time of application. These are people potentially with income to an approximate retirement age. Ask us for more details of this type of insurance.

Paul Woollams, Funeral Insurance NZ