Funeral Insurance options where you pay premiums for just 10 years and then cover is free after that time

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

Why would a person aged under 50 want to buy Funeral Insurance?

Posted on 9 November, 2017 at 9:00

Funeral Insurance is available for anyone aged 30 plus (as a rule). While it is true that funeral covers most commonly are purchased by the 60 plus age group there is no reason why cover is not suitable for the under 50’s as well.

The main reasons someone under 50 would by funeral insurance are;

  • Their health or body mass index (BMI) may not be standard, for example not life threatening but sufficient to make standard life insurance difficult to arrange. Funeral Insurance is guaranteed acceptance with no health questions at all so any previous or current health issues do not need to be disclosed now or anytime in the future.
  • Funeral Cover NZ premiums are fixed for life, so no pesky increases year by year as you get older. While some life insurance policies have fixed premiums you cannot have after age 80 which is when a claim is most likely to occur.
  • Sometimes just a nominal amount of insurance cover to pay funeral expenses is all that is required if you have no debt or dependants.
Paul Woollams, Funeral Insurance NZ

Funeral Insurance cover level options – what is good for me?

Posted on 3 November, 2017 at 4:10

Firstly we have to say we are not funeral directors so we cannot provide advice on how much a funeral for your specific requrements will cost. Several sites show what they call average funeral costs but really that is next to useless for you as your funeral needs will be unique. So, to ascertain the likely cost of your funeral please talk only to a funeral director in your area.

We have learnt that costs can range significanty and this is to be expected as some people will have extremely basic requirements while others will have many specific expectations which may push the cost up.

For this reason insurers offer a range of cover from $3000 to $30000. Now not all insurers offer the full range, some may offer offer a range in between, for example Pinnacle Life provide cover from $7500 to $25000. Cigna Funeral Insurance can range from $3000 to $30000 so dependant on your requirements some insurers will be options while others simply not as they do not offer the cover you want.

Knowing the cost of your likely funeral is only one step in determining the level of cover. You also have to consder whether you require any extra to cover incidental costs such as clearing some small debt such as a loan or credit card. Some people also allow a ittle extra amount to assist family to travel, it is quite common now that families are scattered across NZ or maybe in the islands or Australia (or beyond).

We can guide you, if you want a certain level of cover we can advise which funeral cover proviers can assist. When we quote for you we typically provide you with a range of cover amount levels. We do this because while you may prefer a certain level of cover it may be outside your budget, so we include a range to allow you options in order to suit you financally. Some customers do ending up taking a lower level of cover than ideal to meet budget considerations and we totally accept that is better than more cover at all.

Paul Woollams, Funeral Insurance NZ

Are there restrictions on what funeral insurance NZ payouts can be used for?

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

Cigna Funeral Insurance, AA Funeral Cover versus the rest? What are the options out there?

Posted on 2 October, 2017 at 19:35

If you watch a bit of day time day TV you are likely to have seen more than your fair share of ads for Funeral Insurance NZ, in fact ads such as some from Cigna Life for their Cigna Funeral Cover are not particularly well thought of. A recent ad for Cigna Funeral Insurance did not fair so well in the Fair Go best and worst ads but that was probably a bit harsh. It is not so much people that do not see value in funeral insurance it is likely just that people prefer not to have this topic shoved doen their throats in the manner those ads rightly or wrongly portray.  .

AA Life also advertise quite a bit on TV so between the AA Funeral Cover and the Cigna Funeral Insurance you are likely to think of those two insurers prominently when considering funeral insurance in NZ. But just because they have the big pockets for advertising does not necessarily mean they are the only, or best, options. While it is sensible to consider these insurers in any decision making you should also understand there are a number of other very good potential funeral plans available.

Funeral Insurance is often promoted by more niche, specialist, insurers. Some of the larger NZ insurers do not actively promote funeral cover or they sell a product under a different brand name. So, you do not often see the likes of Sovereign, nib, Tower, AMP promoting funeral cover NZ. They may have a product but you may not easily come across it which means they are not that keen on you buying it.

Some smaller, or niche, insurers such as Pinnacle Life, Greenwich Life, Legacy Life come in to play as options that are worth adding to the mix when deciding on your funeral insurance. They all have unique features and pricing so are often good alternatives to the likes of the Cigna Funeral Cover or the AA Funeral Cover.

For a full comparison of these, and other, funeral covers please view the funeral insurance comparison page of our website. .

Paul Woollams, Funeral Insurance NZ

Why do funeral insurance NZ premiums differ so much from one funeral plan to another?

Posted on 22 September, 2017 at 6:00

If you are comparing funeral cover NZ quotes across a range of insurers it will become obvious very quickly that the range between the most expensive and the cheapest funeral plan can be significant. And often, when it comes to funeral insurance the plans are not too different from insurer to insurer. Most expensive does not always mean the best and cheapest does not always mean the worst.

Some insurers tend to be naturally expensive, they may have big high street offices, lots of staff, high advertising costs and think of themselves as a high value brand. So they deliberately position themselves at that end of the market when setting premiums.There are other insurers who could be referred to as no frills ie they are smaller, or niche insurers and who do not advertise so much.

Both could perfectly meet your requirements. But you need to be aware that there are differences between insurers and factor that in to your decision making process. Some insurers also reflect their own claim statiistis in to settting premiums. For example, insurer A may have had very bad experiences with claim numbers for smokers of a certain age or sex. So, they might load premiums for those people, whereas insurer b may have had a very good claims experience with the same group of people so they may set entirely different premiums for them.

When you buy funeral insurance, or any insurance type for that matter, you do need to compare at least 2 insurers but often we recommend at least 3 or 4. If you have heard of one particular insurer and look at their quotes without checking other insurers you could very well find yourselves paying a lot more than you should be.

Paul Woollams, Funeral Insurance NZ

How easy is it to claim on funeral insurance NZ?

Posted on 15 September, 2017 at 6:20

Good news!, making a funeral insurance claim is really easy. But it needs to be right? at that time the last thing you want is any hassle from any insurance company. Funeral Insurance is designed to be simple right from the quoting and application stage to the claim stage.

When the funeral cover is first arranged you will have nominated a beneficiary which will typically be your spouse, son, daughter or trusted friend. We encourage people to provide a copy of the funeral insurance policy to the beneficiary, together with some thoughts on their funeral plans, so that the beneficiary can take immediate action come claim time.

The beneficiary in the first instance should ring the insurance company and advise the policy details and confirm the insured person has passed away. The insurance company will assist, and from our experience in a compassionate and fair manner. Typically they will send you an email with a short ist of requirements.

In fairness to the insurance company they will need some speciifc information to meet the legal requirements to justify a claim. One helplful thing is that funeral insurance is not dependant on medical disclosure so there is virtually no reason why any sort of ‘non disclosure’ issue can arise from when the policy was issued. Your beneficiary will need to provide sufficent, legal, evidence of the death. A death certificate is the number one, and best, document to provide but that is not always available immediately. In most instances the insurer will also accept a letter from the presiding Specialist.

As it is a legal matter a claim from will need completion, but is it a simpe one, and also evidence the prove the beneficiary is the ‘true’ person ie just to prove you are the person nominated at the time the policy commenced. You will probably be asked for your passport or drivers license.

Other than that it should be simple, simple!

Paul Woollams, Funeral Insurance NZ

To apply for funeral insurance NZ online what information do I need to provide?

Posted on 2 September, 2017 at 6:45

Funeral Insurance in New Zealand is one of the more simple insurance plans as it is guaranteed acceptance. Therefore the questions asked are not invasive or extensive like many life insurance or health insurance application forms are. With funeral plans you do not need to disclose any previous or current health issues.

So, the first part of any application is really just to collect basic personal information such as your name, address, contact phone numbers, email address, date of birth, male of female, citizenship / residency status and a question to confirm that you live in New Zealand at the time of the application.

Some insurers seek your height and weight for premium rating purposes but the majority do not. Some applications will also include a security type question that they would then always ask you when you make an enquiry. This is to ensure your privacy is not breached.

Typically the next question is the level of cover sought and who you wish to nominate to be the beneficiary of your claim money. You will be asked for their name, address, date of birth and usually contact details but we know that last part alters from time to time. It is also important to note that you can alter the beneficiary at any time in the future if your circumstances change.

You will then be presented with an online declaration that you need to ‘sign’ which in keeping with online type applications is done via tick the box process, The person being insured must be present to tick the box, it cannot be done by a family member on their behalf as it could prejudice the application as it would amount to a false declaration (ie some signing something they are not legally able to do). Power of Attorney situations are an exception and you need to discuss with us first.

Finally you will be asked to choose a payment method which could be direct debit, credit card or in some instances internet banking / automatic payment. Each online funeral insurance application will present all available payment options to you. In most instances your payment is then sorted online then and there.

After applying online you will then receive a confirmation email (typically) with the policy details and wording. So, really it could not be easier to apply for funeral insurance in NZ.

Paul Woollams, Funeral Insurance NZ

If you prefer to pay your funeral insurance by internet banking or automatic payment we can assist.

Posted on 14 August, 2017 at 2:55

Paying for your funeral cover NZ by direct debit is the only option most funeral insurers offer. But many people on a fixed superannuation or lower income find this option unsatisfactory to fit in with their budgetting. It also seems that the older we get the more we prefer to manage payments such as insurance ourselves. There seems a mistrust in direct debits and it also does not allow for the same level of flexibility to the customer.

One of the funeral insurance NZ providers we often find is on our list of recommendations will allow you to pay your funeral cover by internet banking or an automatic payment. The premiums are no more than if you pay by direct debit but it allows you to be in control. The only requirements on you is to make your premium payment before the end of the month it is due. Other than that you can make it any time to fit in with your salary, superannuation or to work around any bllls you might have, especially those unforeseen ones that might have otherwise cause a direct debit to fail.

For many people buying funeral insurance this is very beneficial. If you complete our online enquiry form below we will be sure to include details about this payment option (and insurer) when we respond with funeral plan premium quotations, recommendations and any other general information.

Paul Woollams, Funeral Insurance NZ

Funeral Insurance NZ for those aged 70 and over, what is best funeral cover NZ?

Posted on 8 August, 2017 at 6:50

We do get a lot of funeral insurance enquiries from those aged 70 and over. It probably makes some sense that people of these ages are very likely to be mindful of what may come about in the next chapter of their lives and to start preparing to make sure that things like their funeral costs are going to be looked after. Many such people are also on a tight budget sadly.

While the cost of Funeral Cover NZ is a big consideration regardless of your age it is fair to say that after age 70 it is even more important. As with all insurances there is a cost and with funeral plans the biggest factor in determining the premium is age. Premiums are largely dictated to by average life expectancy, so a 50 year old will pay a ot less than a 70 or 75 year old.

If you are aged 70 plus, unfortunately there is no getting around the fact that premiums will be quite high. For that reason we do tend to recommend the lower sum insured levels of maybe up to $7500. This at least keeps the cost to the lowest it can be. The good news with funeral plans is that the premiums are fixed so at least you know what you are going to pay longterm, it is not going to creep up every year as you age.

Also, very importantly for our age 70 plus customers we strongly recommend only purchasing a funeral cover that has premiums that stop being paid at a certain age (say 85?) but where the cover then continues for free thereafter. If you are aged, say 70 to 75, and know that you will only pay to age 85 and then it is free then that is an enormous benefit to you in the long term. We have access to such insurer options and when you enquire we will definitely provide options that include this premium cut off. With some big funeral insurance providers you just pay until claim time, so you could still be paying at 90 plus etc which is ridiculous.

If you are aged 70 or more please let us help you to find a funeral plan that is the best available, it may still be unaffordable for some but we will do our best to come up with something for you to consider.

Paul Woollams, Funeral Insurance NZ