Posted on 1 April, 2018 at 2:45

Funeral Insurance is a very simple insurance type designed specificially to cover the costs of your funeral; therefore alleviating the financial pressures on your partner or children who might otherwise be left with having to find a significant sum of money at short notice. So, put simply funeral insurance is a cash payment made upon your death to help with funeral, or related, expenses.

You can select a cover amount which is typically between $5000 and $30000. The amount you select is normally based on your budget and likely funeral requirements. You would need to check with a funeral director about what costs to expect for your specific requirements but we can advise that about 80% of our funeral cover customers have selected $7500 or $10000 when buying their funeral plan NZ.

When selectng a cover amount you can also consider a higher amount than the likely actual costs of the funeral. Sometimes our customers take cover at the higher level (say $25000) if they feel they may have some small debt they want to clear (maybe credit ard debt or small loan) or in a number of cases we see increased cover to provide some money for families or friends who have to travel from elsewhere in NZ or overseas at short notice.

There are a number of NZ insurers who sell funeral insurance. Some of the biggest insurers do not actively promote funeral covers and some of the best options actually come from some of the smaller, less well known insurers, as funeral insurance nz is actually somethig of a niche type insurance. So, some specialist insurers exist which are great options for you but might not be so obvious to you when you first start to search for funeral cover. We can provide comparative information about the insurers who may provide the best options for you.

Funeral Insurance NZ is popular for two main reasons. First, acceptance of cover is guaranteed as long as you are a NZ citizen or resident currently residing in NZ and if you meet the age entry points. Funeral covers offered by various insurers differ in terms of the ages at whcih cover can be obtained. For example to buy Cigna Funeral Cover you must currently be aged 45 to 80, AA Funeral Plan 50 to 79, Pinnacle Life Funeral Cover 30 to 75 and so it goes on between funeral insurance providers. We can guide you on all the options, depending on your age you could have numoerous or limited options. Sorry, but if you are 86 or older there are no options.

Secondly, there are no health questions asked when applying for funeral insurance, acceptance is guaranteed without the need to disclose any health issues. This applies to previous conditions and also there is no need to disclose anything that arises in the future. Just to make sure the claim process is simple the insurers all aim to pay out within 48 hours of the necessary evidence claim being received. The money is then paid as a cash lump sum to the beneficiary you nomimated when you took out the funeral cover.

So, funeral insurance is largely available for anyone 30 to 85 with a range of insurers (some niche insurers to consider also) and cover can be obtained for amounts right up to $30000 easily. The application processes are simpe often with online appication or just 1-2 page paper forms.

Paul Woollams, Funeral Insurance NZ