Posted on 11 February, 2018 at 5:20

Usually the answer to this question is NO. If you currently have a standard funeral insurance then the odds of being able to replace it with a new funeral plan on better terms and premiums now is low. This comment assumes your current funeral cover has been in existance for at least a few years.

There are two main reasons your current funeral cover may be better value;

1. All ‘standard’ funeral insurance policies sold currently come with a two year stand-down period for claims arising from death by natural causes (death by accident has no stand-down). So if you take a new policy today then you will have another 2 year stand-down period to go through. So, if you are already passed this period with your current insurance then this is a serious disadvantage. We do not recommend you start again with the stand-down period unless the premiums or other terms of a new policy are so beneficial that they outweigh the disadvantage of a new stand-down period being taken. Another valid reason to change funeral insurance could be if your existing one has a date or age it automatically ceases.

2 Currently sold funeral insurance premiums are based on your age at the time that  the policy commences. So, if you are 65 then there is a premium based on that age. And if you are 55 there is a lower premium based on that age. So, if you are now 65 and you took a policy out 10 years ago (at age 55) then the premiums you are paying now will, most likely, be set at that original age of 55. Standard funeral insurance premiums are fixed for life so that policy bought 10 years ago should be cheaper than buying now as you get the advantage from buying at a younger age. An exception to this rule could be if your current policy does not in fact have fixed for life premiums.

It is very rare we find a new funeral cover is better than your current one but if you want to check just in case then please complete our online enquiry form. Also, if your current funeral plan was only taken out very recently, say in the last few months, then better options almost certainly exist.

Paul Woollams, Funeral Insurance NZ