There is plenty of choice out there when it comes to funeral insurance in NZ. Surprisingly, however some of the biggest insurers however do not actively promote funeral covers. Funeral Insurance is actually more of a niche market type insurance so some smaller, less well known insurers are often your best option. So, in that category you can factor in Pinnacle Life, Greenwich Life, Legacy Life as well as some of the big players such as the Cigna Funeral Insurance and the AA Funeral Cover.
Funeral Plan premiums do vary significantly between insurer and insurer. No one insurer has across the board lowest premiums as one funeral cover may be competitive in one age group but not another, or maybe competitive for low cover amounts but not higher. So, you really do need to compare a minimum of three funeral covers before you make a decision. When comparing you need to look closely at the premiums and the policy conditions. Again, while covers follow a similar theme they do also vary between insurers.
When comparing funeral plans we do recommend you consider how long premiums are payable for. As an example at Pinnacle Life you pay premiums then cover continues for free. With the Cigna Funeral Cover and the AA Funeral Plan you instead pay until age 90 before premiums cease and cover continues for free. Factors such as this can save huge amounts of money in the long run.
Each insurer has their own age entry criteria too so it is possible that you may not even be able to obtain funeral cover with a certain insurer depending on your age. For example at AA Funeral Cover you must be aged 50 to 79 at the time the policy, it is 45 to 80 with the Cigna Funeral Cover, 30 to 75 for the Pinnacle Life funeral cover. The general rule of thumb is that there are insurers available from age 16 to 85.
The amount of cover also varies between funeral plans but the typical range is from $5000 to $30000.
For a detailed comparison of 10 plus funeral plans you can click here.
Paul Woollams, Funeral Insurance NZ