Back to guides

Funeral Directors Association of NZ

FDANZ + pre-paid funeral plans

How funeral-director certification works in NZ, and where pre-paid plans fit alongside funeral insurance.

What FDANZ is

The Funeral Directors Association of New Zealand (FDANZ) is the country's voluntary industry body for funeral directors. Member firms agree to a Code of Ethics and Standards of Conduct and complete continuing education. Funeral direction itself isn't a licensed profession in NZ — there's no statutory register — so FDANZ membership is the main quality signal for buyers picking a funeral director.

Pre-paid funeral plans vs funeral insurance — the structural difference

Both products help fund a funeral, but they work very differently:

Pre-paid funeral plan

  • Pay a funeral director up front (lump sum or instalments)
  • Money held in trust or invested by the director
  • Locks in services at today's prices (not a dollar amount)
  • Tied to one funeral firm — usually non-transferable
  • Regulated under FDANZ codes if the director is a member

Funeral insurance

  • Pay ongoing premiums to an insurer
  • Lump-sum pay-out to your beneficiary on death
  • Pay-out is a fixed dollar amount, paid fast
  • Use the pay-out with any funeral director
  • Regulated under the Insurance (Prudential Supervision) Act 2010 + RBNZ

How the money is held on a pre-paid plan

Under good practice, pre-paid funeral money should be held in a statutory trust separate from the funeral director's operating business — protecting it from creditors if the director goes insolvent. FDANZ members commit to trust-based arrangements, but the underlying trust law sits under the Trusts Act 2019. Buyers should:

  • Ask whether the money is held in a statutory trust (yes/no)
  • Get a copy of the trust deed if there is one
  • Ask what happens if you move regions, change directors, or change your mind
  • Ask whether the plan is indexed (services-locked) or dollar-denominated

Stacking the two

It's common to use both products together: a smaller pre-paid plan with a chosen funeral director (locking in the basics) plus funeral insurance for the residual costs (catering, transport, multi-day tangihanga, headstone). The insurance pay-out can go to a nominated beneficiary who pays whatever the pre-paid plan didn't cover.

Reference links

Editorial summary only — not personalised financial advice. Site operated by Evolve Group Limited (FSP711891), a Financial Advice Provider licensed by the FMA.