Using level premium life cover for long-term funeral needs
A level premium stays the same for the period the policy states, instead of rising each year with age. It is not always level for life: some NZ policies are level for 10 years or to age 65 or 80 and then convert to a rising rate, and even a level rate can change for a law change or claims experience. If you plan to hold cover until you die, the questions that matter are when premiums stop, when cover expires, and whether the rate can move.
In short
- Momentum's Funeral Insurance has level premiums until the 89th birthday, then none, and cover continues for life. Its rate can change for everyone on the plan on 30 days' notice, but only for a change in tax or other law, or claims experience significantly different from expected.
- AIA's level options end at 10 years, 65 or 80, after which the premium converts to the stepped Rate for Age (AIA).
- In a case IFSO published, a "level to age 80" policy converted at 80 and the monthly premium went from $49 to $190. The complaint was not upheld (IFSO).
- Funeral Insurance is capped at $30,000 per life across Momentum's funeral policies. A goal above that needs life cover, which is a different product.
What level and stepped mean
A stepped premium is recalculated each year for your age and rises as you get older. A level premium is fixed for a stated period. Fidelity Life describes its Yearly Renewable Term as rising each year with age, gender, smoker status and amount, and its Level Term as starting "a bit higher" and staying the same for the term (Fidelity Life). Asteron says level premiums "lock your premium payments in, so they don't increase with age" (Asteron). The Financial Markets Authority warns that cover cheaper at first can cost more over time, and that most premiums rise annually with age or inflation (FMA).
For a plan to leave money for funeral costs and a little for children, the case for level is predictable cost in your 70s and 80s. The case against is a higher starting price. This page covers how the structures differ; for a cost comparison with invented numbers, see life insurance just for funeral costs.
How the wordings differ
| Product | Premium shape | What the wording says |
|---|---|---|
| Momentum Funeral Insurance | Level to the 89th birthday, then none | Rate can change for everyone on the offer for a change in law or claims experience, on 30 days' notice |
| Momentum Quick Life | Stepped to 75, then fixed | Recalculated each anniversary; can change for tax or claims experience on 30 days' notice |
| AIA Living | Rate for Age, or Level for 10 years, to 65 or to 80 | Converts to Rate for Age afterwards; underlying rates guaranteed "subject to relevant changes in taxation or legislation" |
| Chubb Life Cover | Review periods of 1, 5 or 10 years, a 5-year 5% stepped option, or to 65, 70, 80 or 100 | Recalculated at the end of each period for sum insured, age and "changes to Chubb Life's protection premium rates or relevant laws" |
| Fidelity Life | Yearly Renewable Term or Level Term | Level Term stays the same for the term |
| AA Life Funeral Cover | Premiums to the anniversary after the 90th birthday | One-year renewable term; any rise applies to all policies on the offer |
| Greenwich Funeral Plan | Premiums stop when the total paid equals the benefit | Only product we found with premiums capped at the benefit |
Sources: each insurer's own wording or page, retrieved 17 to 20 October 2026. Fixed does not mean unchangeable.
When premiums stop and when cover ends
These are different dates, and a policy held until death needs both to be late enough.
| Insurer and product | Entry ages | Premiums stop | Cover ends |
|---|---|---|---|
| Momentum Funeral Insurance | 40 to 75 | 89th birthday | Continues for life |
| NZ Seniors and OneChoice funeral | 18 to 79 | 85 | Not stated on the pages we read |
| Chubb Life Funeral Cover | 50 to 80 | At claim, at 90, or entering long-term care | Not stated on the page we read |
| AA Life Funeral Cover | 50 to 79 | Anniversary after the 90th birthday | Not stated on the page we read |
| AIA Living Life Cover | 10 to 70 | Depends on the option chosen | No expiry |
| Chubb Assurance Extra Life Cover | 10 to 70 (55 for level to 65; 60 for level to 70) | Depends on the option chosen | Never expires |
| Fidelity Life cover | 16 to 75 | Depends on the option chosen | No expiry age |
"Level to 65" or "level to 70" options at Chubb need an earlier entry age than the rest of the range. If the level period ends before you die, the premium then converts to or is recalculated at a rising rate, which can be a shock at that age.
How long premiums run at Momentum
A policy that stops at the 89th birthday asks for different numbers of years of premiums depending on when you start. We publish no dollar figure, because Momentum publishes no funeral premium.
| Age at start | Years of premiums to the 89th birthday, at most |
|---|---|
| 40 | 49 |
| 50 | 39 |
| 60 | 29 |
| 70 | 19 |
| 75 | 14 |
The premium for a given age is not the same at each starting age, so this shows duration only. Total premiums could exceed the benefit, and the benefit may not cover the whole cost of a funeral. Momentum's wording says so, and this is not a savings or investment plan. After the 30-day free look, cancelling needs 30 days' notice and you lose the benefit of the premiums already paid. Quick Life has no cash value (Momentum Life: Funeral Insurance Policy Wording, 17 August 2023; Quick Life wording, November 2025). We found no published paid-up or cash accumulation option for the other products.
Questions to ask before you commit
- When do premiums stop, and when does cover end? Get both dates in writing.
- Is the premium level for life, to an age, or for a term? If to an age, what does it convert to?
- Can the rate change? Momentum's wording allows a change for a change in tax or other law, or for claims experience significantly different from expected. AIA's guarantee of its underlying rates is "subject to relevant changes in taxation or legislation". Chubb recalculates at the end of each review period, including for changes to its premium rates or relevant laws. Ask what notice is given.
- What is paid in the first 24 months? Momentum pays accidental death only and refunds premiums otherwise. NZ Seniors and OneChoice are 12 months, and OneChoice says you cannot get a refund of premiums after the cooling-off period.
- What is the maximum per life? Momentum caps funeral benefits at $30,000 across its policies; Chubb and Asteron (AA Life) also cap at $30,000 per person.
- What happens if you stop paying? Momentum may cancel after a month unpaid; reinstatement is by application and not guaranteed.
- Who owns it? An adult child can own a Funeral Insurance policy on a parent ("Relative"), but the owner must be a natural person.
Where this leaves a $20,000 to $50,000 goal
Funeral Insurance tops out at $30,000. Above that, you need life cover. Quick Life starts at $50,000, rises 3% each anniversary, and has stepped premiums to 75; in its first 2 years it excludes pre-existing conditions and suicide. Underwritten level cover for a small sum is an adviser conversation, and we found no published minimum. The Premium Index covers stepped life cover only, so it has no level comparison (Premium Index methodology). A healthy person can usually get more cover for less with fully underwritten cover through an adviser. Funeral Insurance is open at 40 to 75 and Quick Life at 18 to 65; the buttons on this page apply those limits.
How we are paid
Advice is provided by Craig Smith Business Services Limited, trading as Smiths Insurance & KiwiSaver, a licensed Financial Advice Provider (FSP712931). QuoteHub is a Momentum Life partner, and Smiths Insurance & KiwiSaver may receive a commission if you buy through our link; see how we are paid. Momentum Life Limited has an A.M. Best rating of B (Fair), affirmed 11 February 2026; read its financial strength page. General information, not advice. Written by the QuoteHub Editorial Team and reviewed by the QuoteHub Adviser Team, 20 October 2026.
Read more at the funeral insurance hub, how funeral insurance works, the funeral cover amount calculator and Momentum's Funeral Cover page.
Frequently asked questions
Does level premium mean the price never changes?
No. Level means fixed for the period the policy states, and rates can change for a change in law under several wordings, and for claims experience under some, including Momentum's.
Which insurer suits a policy held until death?
We do not rank insurers. The tables above show when premiums stop and cover ends, so you can test each against your age.
Does a level premium policy expire?
The level period can end well before you die, and the premium then converts to or is recalculated at a rising rate. Cover is a separate question: Chubb Assurance Extra Life Cover is described as never expiring, and AIA Life Cover and Fidelity Life cover have no expiry age. A term policy with a stated end age does end, so check the policy.
References
- Momentum Life: Funeral Insurance Policy Wording (17 August 2023), retrieved 17 October 2026
- Momentum Life: Quick Life Insurance Policy Wording (November 2025), retrieved 17 October 2026
- Momentum Life: Financial strength, retrieved 20 October 2026
- AIA Living umbrella policy wording (v8, effective 12 May 2026), retrieved 20 October 2026
- Chubb Life: Assurance Extra life and life income cover brochure, retrieved 20 October 2026
- Fidelity Life: Life cover, retrieved 20 October 2026
- Asteron Life: Life insurance brochure, retrieved 20 October 2026
- AA Life: Funeral cover, retrieved 20 October 2026
- Chubb: Funeral cover, retrieved 20 October 2026
- NZ Seniors: Funeral insurance, retrieved 20 October 2026
- Greenwich Life: The Funeral Plan, retrieved 20 October 2026
- IFSO: Increasing premiums, retrieved 20 October 2026
- Financial Markets Authority: Insurance, retrieved 20 October 2026
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