Compare NZ funeral insurance options including cover amounts, premium types, stand-down periods and acceptance criteria. See providers, features and indicative pricing side-by-side.
A popular choice for Kiwis looking for affordable cover without the middleman. Pinnacle Life's direct-to-consumer approach keeps premiums low - get a quote below.
Funeral insurance pays a lump sum when you die, intended to help your family cover funeral expenses without financial stress.
A funeral in New Zealand can cost anywhere from $8,000 to $15,000 or more depending on the type of service, whether you choose burial or cremation, the location and other factors. Funeral insurance is designed to cover these costs so your family does not have to pay out of pocket or wait for estate funds to be released.
Unlike full life insurance, funeral insurance typically covers smaller amounts - commonly $5,000 to $25,000 - and may have simplified acceptance criteria. Some plans accept applicants without any health questions, though these often come with longer stand-down periods during which illness-related death is not covered.
It is worth comparing the total premiums you may pay over the life of the policy against the benefit amount. In some cases, especially when cover is taken out later in life, the total premiums paid can exceed the payout. The Sorted website has useful tools for thinking through whether funeral insurance fits your financial situation.
The main differences between funeral insurance plans come down to acceptance criteria, premium structure and stand-down periods.
No health questions or medical checks. Anyone within the age range can get cover, making this the most accessible option.
A short set of health questions without requiring a full medical exam. May offer shorter stand-down periods and lower premiums than guaranteed acceptance.
A more detailed health assessment, sometimes including medical records. Usually offers the lowest premiums and shortest or no stand-down periods.
Not insurance - these are contracts with a funeral home to pre-arrange and pre-pay for a funeral at today's prices. Offered by some NZ funeral directors.
These providers are commonly considered by New Zealanders looking for funeral insurance cover.
Pinnacle Life no longer offers standalone funeral insurance as a new product. However, their life insurance includes an advance funeral payment benefit of up to $15,000, which may provide similar cover for those looking at Pinnacle Life options.
Offers funeral cover options through financial advisers, with a range of life and risk products.
The right funeral insurance depends on your age, health, budget and how much cover your family would need.
Standard underwriting plans may offer lower premiums and shorter stand-down periods when health is not a concern. Locking in premiums at a younger age may also cost less over time.
Guaranteed acceptance plans may be the most accessible option when health issues make standard underwriting difficult. Be aware of longer stand-down periods and higher premiums.
Comparing total premiums paid over the expected policy life against the benefit amount can help assess value. A savings account or term life policy may be worth considering as alternatives.
A side-by-side look at funeral insurance options available in New Zealand, including direct providers and those accessed through advisers.
| Provider | Best Known For | How Bought | Best For |
|---|---|---|---|
| Pinnacle Life | Direct funeral cover, multiple plan options | Direct (online/phone) | Direct purchase, range of options |
| Fidelity Life | Life and funeral cover through advisers | Adviser | Adviser-led planning |
| Asteron Life | Life and funeral insurance range | Adviser | Adviser relationships |
Disclaimer: Provider availability, product features and premiums change regularly. Always verify current options and terms directly with the provider or your adviser. If you spot something incorrect, please let us know.
Funeral insurance is designed to be straightforward, but the details of when it pays out vary between plans.
| Scenario | Usually Covered | Often Not Covered |
|---|---|---|
| Death from illness (after stand-down) | Yes - lump sum paid to beneficiary after stand-down period has passed | During the stand-down period (often 12 - 24 months) |
| Accidental death | Usually from day one, even during the stand-down period | Some policies exclude certain high-risk activities |
| Funeral costs | The lump sum can be used for funeral, burial, cremation and related costs | No restriction on use - but amount may not cover all costs |
| Terminal illness | Some policies pay out early on terminal diagnosis | Not all policies include this - check the wording |
| Pre-existing conditions | Guaranteed acceptance plans cover pre-existing conditions after the stand-down | Underwritten plans may exclude specific pre-existing conditions |
Funeral insurance policies are simpler than most insurance products, but there are still important exclusions to be aware of.
Death from illness or natural causes during the stand-down period (typically 12 - 24 months) is usually not covered. Only accidental death is covered during this time.
Most policies exclude suicide within the first 12 to 24 months. Some extend this exclusion for the full stand-down period.
For underwritten plans, failing to disclose relevant health information when applying can void the policy.
Death resulting from criminal activity by the policyholder is commonly excluded.
Some policies exclude death related to substance abuse, though the specific wording varies between providers.
Many policies have an upper age at which cover ends or can no longer be purchased, commonly between 80 and 90 years of age.
Funeral insurance premiums are driven by age, health status, cover amount and plan type.
The older you are when you take out the policy, the higher the premiums. This is the single biggest factor in pricing.
Higher cover amounts ($20,000 vs $10,000) mean higher premiums.
Guaranteed acceptance plans are typically more expensive than underwritten plans because the insurer takes on more risk.
Stepped premiums start lower but increase with age. Level premiums stay the same but are higher initially.
For underwritten plans, your health at the time of application affects the premium. Guaranteed acceptance plans do not assess health.
Smokers typically pay higher premiums than non-smokers across most providers.
Some providers factor in gender when calculating premiums due to differing life expectancy statistics.
Monthly, fortnightly or annual payment options may affect the total cost. Annual payments sometimes offer a small discount.
Indicative NZ funeral insurance premium ranges vary significantly by age, cover amount and plan type. These are rough guides only.
Disclaimer: These figures are indicative ranges only, not quotes. Actual premiums depend on your age, health, cover amount, plan type, provider and other factors. Funeral costs vary by location and service type. Always obtain a personalised quote from the provider.
While funeral insurance premiums are largely driven by age and cover amount, there are still ways to keep costs manageable.
Premiums are significantly lower when you are younger. Locking in a level premium early can save money over time.
Level premiums cost more initially but stay the same, which may cost less over the long term compared to stepped premiums that rise with age.
Consider whether you need $20,000 or whether $10,000 - $15,000 would cover a simpler service. Matching cover to realistic costs avoids overpaying.
Calculate the total premiums you would pay over the expected life of the policy and compare that to the benefit amount.
A dedicated savings account, term life insurance or a pre-paid funeral plan may achieve the same goal at a different cost depending on your situation.
Some providers offer a small discount for annual payments compared to monthly. Check whether this applies.
Switching funeral insurance requires care because of stand-down periods and the loss of premiums already paid.
Check your current cover amount, premium, stand-down status and any special terms before looking elsewhere.
A new policy will have its own stand-down period. Do not cancel existing cover until the new policy is active and you understand the gap in cover.
Make sure cover amounts, premium types and exclusions are comparable before switching based on price alone.
Your health and age now may be different from when you first applied. A new underwritten policy may cost more or be harder to obtain.
Funeral insurance claims are typically made by the beneficiary or executor after the policyholder's death.
The beneficiary or executor contacts the insurer to advise of the death and start the claims process.
A death certificate is usually required. The insurer may also ask for proof of identity and the policy details.
The insurer checks that the policy was active, the stand-down period had passed (if applicable) and no exclusions apply.
Once approved, the lump sum is paid to the nominated beneficiary. This is typically within a few days to a few weeks.
If the claim is declined, the beneficiary can follow the provider's complaints process and then escalate to IFSO if needed.
New Zealand has several factors that affect how funeral insurance works and how it fits alongside other entitlements.
Funeral insurance policies are typically simpler than other insurance products, but the key terms still matter.
Check exactly how long the stand-down period is and what types of death are excluded during it. Accidental death is usually covered from day one.
Understand whether premiums are level (fixed) or stepped (increase with age). This significantly affects total cost over time.
Check whether cover continues for life or ends at a specific age. Some policies stop at 85 or 90, meaning cover ends when you may need it most.
Confirm how the benefit is paid and to whom. Check whether you can change the nominated beneficiary and how quickly claims are typically processed.
Answers to common questions New Zealanders ask when comparing funeral insurance.
Key funeral insurance terms explained in plain language.
Browse funeral insurance brands commonly compared in New Zealand. Each review looks at cover options, pricing structure and plan types.
See which funeral insurance options may suit your situation and budget. Compare providers, cover amounts, premium types and stand-down periods before you buy.