Compare funeral insurance products in New Zealand

When setting up cover to help your loved ones with your funeral costs, it’s important to remember that every funeral insurance product is different. Each provider has their own benefits and exclusions you need to consider, so it’s worth doing your research to find the most suitable product on offer. Choosing the right provider from the start can also save you from having to switch policies later on if your needs change.

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Everything you need to know about funeral insurance

The table below highlights the common benefits and features you’ll need to consider when comparing funeral insurance policies.

Benefits New Zealand Seniors Insurer B Insurer C Insurer D
Eligibility from age 18 Yes18 – 75 No40 – 75 No50 – 75 No50 – 80
Accidental Serious Injury coverCover for defined significant life-changing events caused by an accident, up until the age of 75 YesAt no extra cost No No No
Accidental death only period Yes12 months No24 months No24 months No24 months
Early Cash BackOnce you turn 85, you can choose to cancel your cover to receive an Early Cash Back payment of your chosen benefit amount Yes No No No
Reducing premiumsPremiums reduce by 5% every 5 years Yes No No No
Premium back promiseWhen the time comes, your family will receive your cover amount or all the premiums you’ve paid for your cover – whichever is greater Yes No No No
Triple payout for accidental death If death is as a result of an accident, the beneficiary will receive 3 times the cover amount Yes No No No
Covered for life YesNo premiums after age 90 YesNo premiums after age 89 YesNo premiums after age 85 YesNo premiums after age 90
10% of premiums refunded after first 12 months Yes No No No

This information is accurate as at 31 March 2019. This table compares a sample of policy features, but does not compare all aspects of each policy. There are also other policies available that have not been compared. Each insurer charges different prices for their cover, however, you should also consider the premium structure that is available. Policies which have a lower premium in the first year of cover may not always be cheaper over the long term.

Things you should know

  • If you change your cover your premiums will be affected.
  • If your policy is cancelled prior to age 85, no benefit amount is payable.
  • This is not an investment product and there is no refund of premiums after the cooling off period.
  • If you choose the Early Cash Back option, you will no longer be eligible to claim and you may receive less than the total premiums you’ve paid into your policy to date.

Early Cash Back option

As you get older, it’s possible that you and your family will be in a better financial position than before, which could mean you no longer need cover in place for your funeral. This can also happen due to other changes in your living situation or personal needs. Instead of cancelling your policy and losing out on your benefits, Seniors Funeral Insurance comes with an Early Cash Back option. This means you can choose to cancel your cover and receive your full benefit amount once you turn 85. The money can be used to live out your final wishes or for any other purpose you would like. At the time of our comparison, there were no other providers in New Zealand which offered this option.

If you’re worried about how your financial situation or needs might change later in life, talk to New Zealand Seniors about setting up a policy which gives you more control over your benefits.

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Everything you need to know about funeral insurance

Accidental Serious Injury cover

An accidental serious injury can bring on just as much financial hardship as a funeral – not just for those closest to you, but for yourself too. On top of the immediate medical bills that your family would face, there’s the added cost of ongoing care and other services. That’s why some funeral insurance policies offer complimentary cover for Accidental Serious Injury. This isn’t designed to replace health insurance, but it can bring some financial relief if you suffered a significant life-changing accident (in line with the provider’s criteria).

Accidental Serious Injury cover can increase the value of having funeral insurance, but interestingly, only one provider in New Zealand currently offers this benefit at no extra cost. Seniors Funeral Insurance is the only policy in our comparison above which comes with free Accidental Serious Injury cover.

Did you know?

Seniors Funeral Insurance covers more than just your funeral expenses – you’ll also receive a lump-sum payout if you suffer from an eligible Accidental Serious Injury.

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Reducing premiums

While the cost of funeral insurance usually depends on your age, some policies actually offer lower premiums as you get older. This is a great feature to look out for as it can ensure your policy remains budget friendly over time and may reduce the risk of having to cancel your cover if your financial situation changes. Based on our comparison, Seniors Funeral Insurance was the only policy with yearly discounts on premiums. With this policy, your premiums would reduce by 5% every 5 years you continue your same level of cover, so the longer you hold your cover the more you will end up saving.

Did you know?

If you take out Seniors Funeral Insurance at age 60, and you continue your same level of cover, your premiums will be approximately 20% lower when you reach 80. This can lead to considerable savings over time, especially handy when you may no longer be working.

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Premium-back guarantee

If you’re concerned about paying too much for your funeral cover, you can take advantage of premium-back guarantees offered by some providers. This means that when your loved ones make a claim for funeral expenses, they will receive either the benefit amount OR all of the premiums you’ve paid towards your policy – whichever is greater. So, if your benefit amount is set at $10,000 but you have already paid $15,000 in premiums by the time a claim is made, your family will receive the higher amount.

Seniors Funeral Insurance is currently the only policy that offers this guarantee, based on our comparison. The three other providers compared (as at 31 March 2019) did not have any similar benefits.

Did you know?

With Seniors Funeral Insurance, you’ll never pay more than what your family receives when they claim. When you pass away, we’ll pay either the benefit amount OR all of the premiums you’ve paid – whichever is greater.

Triple benefit for accidental death

If your death is the result of an accident, your family may be entitled to a higher payout when claiming for funeral expenses. This can help with any sudden funeral costs that your family wouldn’t have been prepared for, since your passing would be unexpected. As seen in our comparison table, this benefit is only offered by Seniors Funeral Insurance. With this policy in place, your family will receive three times the agreed benefit amount if you pass away from an accident.

Did you know?

With New Zealand Seniors, if you take out the maximum cover amount of $30,000, your family’s total payout would be $90,000 if your death was accidental.

Age eligibility

While we all hope for the best, the reality is that you can’t predict when your funeral will take place. Your family and friends may need to organise your farewell unexpectedly at any time, so getting cover could be useful for most adults at various ages. However, it’s important to consider your eligibility for each policy as every provider usually has an upper and lower cut-off age.

In our comparison, we found that most providers only offered cover to applicants aged 40 years or older. In fact, only one provider offered cover for people under the age of 40. With New Zealand Seniors, you can apply for funeral insurance from just 18 years of age – the youngest age eligibility of all providers in the market. This could be the ideal policy if you want to ensure loved ones will have a helping hand for your funeral from as early as possible.

For people looking to take out cover later in life, Insurer D had the oldest entry age – letting you apply up to the age of 80.

Lifetime cover & premium cut-off age

All providers in our comparison offered lifetime cover on funeral insurance, so you don’t need to worry about your policy expiring (as long as you keep paying your premiums). On top of this, most providers also waive your premiums once you reach a certain age – subject to individual terms and conditions. Insurer C fared the best in this category as they offered free cover from 85 years of age. Other providers in our comparison, including New Zealand Seniors, offered free cover from a slightly older age (89 – 90 years).

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