How funeral insurance works

Funeral insurance is a financial helping hand you can provide for your family. When you pass away, your family will receive a lump sum benefit payout they can use to cover any immediate expenses, such as a funeral service or outstanding debts. 

Funeral insurance works much the same way as other insurance policies – where you pay a fortnightly or monthly premium based on factors such as your age, smoker status and the level of cover you choose. It can help you ensure your final expenses are covered without any inconvenience to those most important to you.

Every day in New Zealand about 80 funerals and memorial services are held on marae and in churches, temples, mosques, synagogues, funeral home chapels, community halls and suburban gardens.¹

What it covers 

A funeral insurance policy can help your family honour you with a service and celebration of life that suits your style. A funeral in New Zealand costs on average $10,000², which can be a stressful bump in the financial road for loved ones during an already tough time.

By choosing a benefit amount that suits your needs, you and your family can take comfort in knowing they can pay for any immediate expenses that may occur when the time comes.

A funeral insurance policy will usually provide an immediate cash payout when a claim is made, which can be used to cover:

  • your funeral service
  • bills or expenses you leave behind
  • immediate mortgage or loan repayments
  • whatever your family needs at the time. 

What to consider when getting funeral insurance 

Planning how your funeral is paid for is just as important as planning and saving for other events in your life. Consider the style of funeral you want – can your loved ones afford this? This is where funeral insurance can help cover the costs and other related expenses. Learn more about who should consider funeral insurance.

Who pays for your funeral?

In most instances, your next of kin (spouse, child, parent, legal partner or sibling) is responsible for arranging and paying for your funeral. You or your family members can take out funeral insurance cover which means there’s one less thing to worry about when the time comes for your family to pay the funeral costs. 

When taking out funeral insurance, consider the following when choosing your cover: 

  • funeral service expenses (e.g. burial, cremation, death certificates, flowers, clergy fees etc.) 
  • your savings 
  • other insurances you may have
  • government funeral grants available to you 
  • personal bills or loans you may leave behind. 

A funeral in New Zealand costs on average $10,000.²

Funeral expenses to consider 

  • funeral director
  • burial fees or cremation costs
  • flowers 
  • catering 
  • death certificate 
  • celebrant 
  • newspaper notice
  • casket

Depending on your personal style and your family’s needs, funeral expenses can vary. 

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Everything you need to know about funeral insurance

Considering funeral insurance?

Life changes over time and so should your policy.

We know that things can change over the years which means your insurance should keep up. That’s why Seniors Funeral Insurance helps you adjust if life comes calling and your circumstances change.

Once you turn age 85:

  • We’ll add an extra 25% Bonus Cover on top of your cover amount 
  • You won’t pay any more premiums, so you can stay covered at no further cost
  • Or, you can choose to end your policy and receive 75% of your cover amount through our Early Cash Out Option3

How can New Zealand Seniors help?

Seniors Funeral Insurance pays a lump sum to your family (up to $30,000) upon your death for them to spend as they require.

Benefits of choosing Seniors Funeral Insurance

Choose a level of cover that suits you

Seniors Funeral Insurance pays a lump sum to your family from $3,000 up to $30,000 upon your death.

Guaranteed acceptance

If you’re a New Zealand resident aged 18 to 79, you’re guaranteed acceptance. No medical screening, complicated paperwork or blood tests required.

Quick payout to your family

Claims are usually paid within 1 business day of all completed documentation being received, so you can be sure your family has the financial help they need with little fuss.

Bonus Cover at age 85

Once you turn 85, you’ll receive an extra 25% Bonus Cover on top of your cover amount, so you can enjoy even more peace of mind for the years ahead.

No more premiums after your 85th birthday

From age 85, we’ll stop charging you for your cover so there will be no further premiums to pay.

Cover for terminal illness

Get 100% of your benefit paid if you are diagnosed with a terminal illness, helping you plan your final wishes without financial worries.4

Level premiums with no annual increase

With Seniors Funeral Insurance, your premiums won’t go up every year, making it easier to budget for the years ahead.5

Triple benefit for accidental death

From the day your policy starts, your loved ones will receive triple your cover amount if your death is the result of an accident.

More control over your policy

Choose a payment frequency that works for you and your budget and list up to 5 different beneficiaries.

Early Cash Out Option

Once you turn 85, you can choose to end your policy and receive 75% of your cover amount paid to you.3

Guaranteed payment at age 100

When you reach 100 years of age, we’ll end your policy and pay you 125% of your cover amount to spend however you wish.

See more benefits

Need more help deciding?

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Everything you need to know about funeral insurance

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  1. Death and dying – TeAra.govt.nz
  2. What are some of the normal costs of a funeral?  – Citizens Advice Bureau NZ
  3. If you choose the Early Cash Out Option, you’ll no longer be eligible to claim as this option will cancel your policy. 
  4. Cover is for accidental serious injury and accidental death only in the first 12 months. Terminal illness with diagnosis of 12 months or less to live.
  5. There’s no refund of premiums after the cooling off period. The total amount of premiums payable over the life of the policy has the potential to exceed the cover amount.

How can we help?

To find out more about New Zealand Seniors,
speak to one of our friendly insurance specialists now