The overwhelming benefit of funeral insurance NZ is its simplicity. There are few, if any, insurance types that are easier to apply for and obtain. Paperwork (including the online variety) is kept to an absolutely minimum. You can literally be covered in less than 10 minutes if you wish.

Why is funeral insurance so simple? Well unlike most insurance, a funeral plan in NZ is guaranteed acceptance. So, as long as the insurance company has an eligible product (for your age and assuming you meet citizenship / residency requirements) then cover can be obtained. There are none of your typical questions that are used to determine if cover can be provided.

We mention age as the various insurers do have their own set age groups for cover. For example with AA Funeral Plan you must be aged 50 to 79 at the time of application. For Cigna Funeral Insurance it is 45 to 80 and at Pinnacle Life it is 30 to 75. So, that criteria does vary. All funeral plan insurers do require you to reside in NZ at the time of application and be a NZ citizen or resident.

So, it is really easy to apply for (many options are available online with cover issued on the spot) and there are no pesky invasive questions that often annoy when applying for insurance. So, what are the main reasons people buy funeral insurance?

Unfortunately, not everyone is in a position to have funds readily available to pay for their funeral. Even if you have some money your family might not even be able to access it, or maybe a property needs to be sold before money is available. Others are simply not even that lucky, that will never really be in a position to easily find the funds for the funeral. And one thing we have found over the years is that older folk absolutely dread the thought that their family (like adult sons or daughters) would have to pay for their funeral. And as we know other family may not be even in a position to quickly front a large lump sum either.

So, people are increasingly turning to arranging a funeral insurance policy that will promptly pay an agreed tax free cash lump sum (you choose the amount when arranging the cover) that will promptly provide cash to your nominated beneficiary. They can then meet the funeral costs quickly and without any hassle.

Paul Woollams, Funeral Insurance NZ