Written by · Reviewed by Smiths Insurance & KiwiSaver — licensed Financial Advice Provider (FSP712931) · Last updated 2026-10-20

Choosing a life insurance amount as a senior

The right life insurance amount for a senior depends on the job the money must do. Momentum's Funeral Insurance pays a fixed benefit of $3,000 to $30,000 towards costs, and FDANZ's 2026 average for a full funeral with cremation is $11,700. Debts or a partner who relies on your income call for a larger sum, and larger sums are open to fewer ages.

In short

A cover amount is the lump sum the policy pays, and for seniors it is worked out from the need rather than picked as a round number. A need is a bill or a loss of income that a payout would settle. There are usually only three: the cost of the funeral, any debts that fall on the estate or a surviving co-borrower, and the income or care that another person would lose. Many seniors have only the first. Some, especially those still paying a mortgage or supporting a partner on a low income, have all three. The sources below give figures for each, so you can add up your own sum before you ask for a quote. This page is general information. It does not tell you what you need, and a licensed adviser can test your sum.

Need 1: the funeral

FDANZ's 2026 Industry Trends Report (a 2025 member survey) gives an average of $11,700 for a full funeral for 50 attendees with cremation, within a range of $10,000 to $13,900, and $14,300 with burial, within $12,800 to $17,000. An unattended cremation with no service averages $4,700 (FDANZ). Those are averages for a stated scenario, not a promise of a bill. Our funeral cost calculator and the funeral insurance cost page work with your own choices.

Two points shape the amount. A Work and Income Funeral Grant has a maximum of $2,697.43 (page updated 24 June 2026), is tested on the estate and any partner's or parent's assets, and prepaid funeral cover can stop you getting it (Work and Income). And Momentum's Funeral Insurance wording says the benefit may not cover the cost of a funeral and that total premiums could exceed it, so insurance is one way of preparing, with saving another.

Need 2: debts

Debts in your name alone are paid from your estate (Administration Act 1969, s 26; legislation.govt.nz). A joint bank account passes to the other owner and is not part of the estate (Community Law). Debts held jointly are different, so check with the lender. Debts matter to the amount when the estate cannot pay them and someone else is exposed. For a mortgage specifically, see mortgage protection for seniors.

Need 3: people who depend on you

A partner who relies on your income or pension will lose it. Work and Income says payments to a person who has died may continue for up to 28 days in some cases, then end (Work and Income). How large a sum replaces that loss, and for how long, is a calculation an adviser does with your figures. We publish no rule of thumb because none of our sources gives one.

Which amounts are open at each age

These are published limits as at 20 October 2026, from the insurers' own pages and wordings. Not every NZ insurer is included.

Amount Product (published entry age) Notes
$3,000 to $30,000 Momentum Funeral Insurance (40 to 75) $30,000 cap per life across Momentum funeral policies; accidental death pays 3 times the benefit
$3,000 to $30,000 NZ Seniors and OneChoice funeral cover (18 to 79) Pinnacle Life; accident-only for the first 12 months
$5,000 to $30,000 AA Life Funeral Cover (50 to 79) Asteron Life; accident-only for 24 months with premiums refunded for another cause
Up to $30,000 Chubb Life Funeral Cover (50 to 80) Minimum not published
$50,000 to $300,000 Momentum Quick Life (18 to 65) Starting maximum; 3% a year indexation to 75 or $500,000 per life
$10,000 to $200,000 NZ Seniors Life (45 to 79) Eight health questions by phone
Up to $250,000 Golden Insurance (40 to 80) Health and lifestyle questions; maximum falls with age (see below)
$50,000 and up AIA Essentials (16 to 70) $50,000 to $1,000,000 at 16 to 60 and $50,000 to $500,000 at 61 to 70
No stated maximum Chubb Assurance Extra Life Cover (10 to 70) Underwritten

Golden Insurance's policy document of 21 January 2026 steps the maximum with age: $250,000 at 40 to 60, $200,000 at 61 to 70 and $150,000 at 71 to 80. So the amount you can ask for falls as you age, even where the product is open.

Underwritten cover also asks for more evidence at larger amounts. Fidelity Life and Chubb Life both need only an application or personal statement up to $500,000 at every age band, and from $500,001 at 61 and over they ask for a GP medical or tests (Chubb, Fidelity). Those are minimums; disclosed conditions trigger more.

$50,000, $100,000 and $250,000: what each size means in practice

For larger sums over 65 you are looking at underwritten cover, and the age caps on that are 70 for AIA and Chubb Life and 75 for Fidelity Life. Above those ages, the largest guaranteed-acceptance benefit we found is $30,000.

What raising the amount does

Raising the amount later is not free of consequences. On Momentum's Funeral Insurance an increase starts a new 24-month window for the increase, and the $30,000 cap applies across all your Momentum funeral policies. On Quick Life the 3% automatic increases do not restart the two-year period, but a chosen increase restarts it for the increase portion; the premium rises with every increase. Opt out of a yearly increase if you do not want the cost.

Three illustrations (made up for explanation, not advice)

Person Needs added up What this might point to
74, owns home outright, partner has own income Funeral only, around the FDANZ averages A funeral-sized benefit, or saving; compare totals
68, rents, partner relies on their pension Funeral plus a partner's loss of income Ask an adviser whether underwritten cover is open at 68
58, mortgage and a partner on lower income Funeral, mortgage, income Life-sized cover; Quick Life, underwritten cover or both, via an adviser

Who we are

General information, not advice. 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 (how we are paid, disclosure). Momentum Life Limited's A.M. Best rating is B (Fair), affirmed 11 February 2026, which Momentum's own table groups as "Vulnerable"; see its financial strength page. Quick Life excludes pre-existing conditions and suicide for the first 2 years, and Funeral Insurance pays only for accidental death for the first 24 months. Details are on the Quick Life and Funeral Cover pages. Last updated 20 October 2026. The buttons on this page open Momentum's own online quote.

Frequently asked questions

How much life insurance does a 70-year-old need?

That depends on the three needs above. For a funeral alone, the FDANZ averages are $11,700 with cremation and $14,300 with burial. Add debts and income needs separately.

Can I get $100,000 of life insurance at 70?

Not from Momentum, whose Quick Life closes at 65. Some insurers publish underwritten cover to 70 or 75 and cover with health questions to 79 or 80. Acceptance is the insurer's decision.

Is $10,000 enough for a funeral?

It is below the FDANZ 2026 averages for a full funeral for 50 guests ($11,700 with cremation). FDANZ describes $10,000 as "well below" a modest attended funeral, though it is more than the $4,700 average for an unattended cremation.

References

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