How to Choose the Right Funeral Insurance Plan

Essential Checklist:

Compare coverage amounts and premiums
Check waiting periods and exclusions
Review provider reputation and claims process

Step 1: Determine Your Coverage Needs

The first step in choosing funeral insurance is determining how much coverage you need. Consider:

Preferred type of funeral service
Burial or cremation costs
Venue and catering expenses
Additional expenses like headstones or urns

Sizing the cover amount

We don't publish hardcoded "average funeral cost" tables — figures vary materially by region, service style, and funeral director, and they go stale fast. The practical approach: get a real quote from one or two local funeral directors for the kind of service you have in mind (burial vs cremation, full service vs simple), then add a buffer for non-funeral cash needs (probate-period bills, family travel, headstone). That number is the right sum-insured to quote against.

Step 2: Compare Premium Types

Understanding different premium structures is crucial:

Level Premiums: Stay the same but start higher
Stepped Premiums: Start lower but increase with age
Capped Premiums: Stop increasing at a certain point

Step 3: Evaluate Provider Features

What varies most across 9 NZ funeral insurers

Product structure (standalone vs rider) and underwriting (guaranteed-acceptance vs underwritten) are the two structural decisions that filter your shortlist down.

Provider	Product structure	Underwriting	Premium options
Pinnacle Life	Standalone funeral	Both	Stepped + level options
Momentum Life	Standalone funeral	Guaranteed-acceptance	Stepped premiums
NZ Seniors	Standalone funeral	Guaranteed-acceptance	Stepped premiums
OneChoice	Standalone funeral	Guaranteed-acceptance	Stepped premiums
AA Life	Standalone funeral	Guaranteed-acceptance	Annual-renewable; age-based
Partners Life	Rider on life cover	Underwritten	Stepped + level options
AIA New Zealand	Rider on life cover	Underwritten	Stepped + level + premium freeze options
Chubb Life NZ	Rider on life cover	Underwritten	Stepped + level options
Fidelity Life	Rider on life cover	Underwritten	Stepped + level options

Structural facts only — premiums are quote-based. See the full comparison matrix.

Financial Strength

Check provider ratings and history

Claims Process

Look for quick, hassle-free claims

Waiting Periods

Compare accidental vs natural death cover

Step 4: Read the Fine Print

Pay special attention to:

Exclusions and limitations
Premium increase schedules
Cancellation terms
Benefit payout conditions

Step 5: Consider Additional Benefits

Look for policies that offer:

Premium freezes or reductions
Early payout options
Family discounts
Worldwide coverage

Expert Tips

Consider level premiums if you're under 60
Look for policies with premium caps
Compare total cost over expected policy length

Ready to Compare Policies?

Now that you know what to look for, it's time to compare funeral insurance policies across 9 NZ funeral insurers.

Get Expert Help

Compare funeral insurance quotes from top NZ providers and find the right coverage for your needs.

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Frequently asked questions

What should I look at first when choosing funeral insurance?▾

Two structural decisions: (1) standalone funeral product vs a rider on a broader life cover policy, and (2) guaranteed-acceptance (no medical questions, 24-month waiting period for natural-cause death) vs underwritten (medical questions, day-one cover). Those two filter your shortlist down from 9 NZ insurers to 2–3.

How much funeral cover do I need?▾

Match the sum-insured to a realistic NZ funeral cost for the service you have in mind, plus a buffer for non-funeral cash needs. Don't rely on 'average funeral cost' tables — get a quote from one or two local funeral directors for the actual service. Over-insuring at smoker / late-life rates is the most common funeral-cover mistake.

What policy details should I read carefully?▾

Waiting periods (natural-cause vs accidental), exclusions (suicide within 24 months, pre-existing condition carve-outs), premium-increase schedule (stepped policies), cancellation terms, beneficiary nomination, and Accelerated Funeral Benefit terms if the product offers one.

Should I use an adviser or apply direct?▾

Direct (online) is fastest and suits guaranteed-acceptance products where there's nothing to underwrite. An adviser is more useful for underwritten products, for combining funeral cover with broader life/income protection, or where you have complex medical history that benefits from someone advocating with the insurer.

How do I get a real quote?▾

Direct insurers (Pinnacle, Momentum, NZ Seniors, OneChoice, AA Life) have online quote tools — quote yourself in minutes. Adviser-distributed insurers (Partners, AIA, Chubb, Fidelity) quote via a Financial Advice Provider. Compare 2–3 insurers at the same cover amount to see the band shape.