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

Union death benefits and employer welfare funds in NZ

A union death benefit is a payment a union makes to a member's family when a current member dies. It is not universal and it is not large. The Rail & Maritime Transport Union (RMTU) says it pays $1,000 on the death of a current member and $500 on the death of a current member's spouse. Other union websites we read, including E tū, the PSA and Workers First (where the firstunion.org.nz address now redirects), list no death benefit. Ask your own union for its written rules.

In short

What is a union death benefit?

It is a payment from the union, not from an insurer, usually small and often paid to a named person or the family when a current member dies. Some unions also arrange insurance for members, which is a separate thing: the cover is written by an insurer, not paid from the union's funds. When you read a union's membership page, check which one is on offer.

What we found, union by union

We read the public websites of four unions on 20 October 2026. The result is a patchwork.

Union What its site says Source
RMTU Death benefit of $1,000 on the death of a current member and $500 on the death of a current member's spouse; free $1,500 accidental death and dismemberment policy for financial members; optional $10,000 accidental death cover RMTU specialist services
E tū No death benefit listed. Its member benefits page lists a life cover offer through Union Plus Financial Services ("up to $100 off your first month's premium"), with details behind the member login E tū member benefits
PSA No death or funeral benefit found on its home page; it mentions a hardship fund for members in an industrial dispute PSA
Workers First No death benefit found on the pages we could read; firstunion.org.nz redirected here on 20 October 2026 Workers First

"Not found" means the pages we could read did not list one. A union may pay a benefit that its public site does not describe, or have rules in members-only pages, so ask the union directly. We did not find any source for the claim that E tū or FIRST Union pays a grant of $1,000 to $5,000, so we do not repeat it.

How the RMTU benefit works

The RMTU page says the benefit is payable "on the death of a current member". The word current matters, and the RMTU's page does not define it. If you are unsure whether you are financial, ask the union to confirm it in writing, and make sure a family member knows who to contact. The union page also does not say how long the family has to claim or what paperwork it needs, so we cannot give a deadline.

The free accidental death cover is a different product. The page names it "Accidental Death & Dismemberment", which by its name pays for death caused by an accident, not illness. Check the certificate of coverage for what counts as an accident, and name a beneficiary through the insurer so the money goes where you want it. The RMTU page says AIL is rated A+ Superior by A.M. Best. That is the insurer's own statement of its rating on the union's page, not a QuoteHub assessment.

Employer welfare funds and workplace schemes

We found no public source on employer welfare funds that we could cite, so this page makes no claim about them. If you want to know whether you have any workplace death cover, ask your employer or union these questions and keep the answers:

  1. Is there any life, accidental death or group insurance through work, and who is the insurer?
  2. Who is the named beneficiary, and can you change it?
  3. Does cover end if you leave the job or retire?
  4. Does any workplace superannuation scheme pay anything on death? KiwiSaver savings are paid out to the estate or as the scheme's rules allow, so they are handled with the other estate assets.

How union benefits compare with funeral costs

Item Amount Source
RMTU death benefit, current member $1,000 RMTU
Average cremation, no service $4,700 FDANZ 2026 report
Average full funeral, cremation, 50 guests $11,700 FDANZ 2026 report
Average full funeral, burial, 50 guests $14,300 FDANZ 2026 report
Work and Income Funeral Grant, maximum $2,697.43 Work and Income

On our arithmetic, $1,000 is about 9% of $11,700 and about 21% of $4,700. That is why we call these payments top-ups. They help with early costs, and the rest has to come from savings, the estate, family, the Funeral Grant if you meet its tests, or a funeral product. Work and Income says that if other help with costs is available to you, you may not be able to get a Funeral Grant. Ask whether a union payment counts.

Union benefits versus personal funeral and term life cover

A union benefit is not something you buy. It lasts while you stay a financial member, and the union can change its rules. A personal policy is yours until you cancel it or stop paying.

A.M. Best rates Momentum Life B (Fair); see its financial strength page. A person who is healthy can usually get more cover for less with fully underwritten life cover through an adviser. The buttons on this page lead to Momentum's online quote.

How to find out what you are entitled to

  1. Ask the union, in writing, whether it pays a death benefit, the amount, who it is paid to and how to claim.
  2. Check the rules on being a current member and what counts as arrears.
  3. Ask whether any insurance comes with membership, and request the certificate.
  4. Tell the family where your membership details are, and read who pays for a funeral so they know the order of things.
  5. Work out how much you would want in place with our funeral cover amount calculator, and compare it with typical funeral costs.

Advice is provided by Craig Smith Business Services Limited, trading as Smiths Insurance & KiwiSaver, a licensed Financial Advice Provider (FSP712931). This page is general information, not advice. QuoteHub is a Momentum Life partner, and Smiths Insurance & KiwiSaver may receive a commission on Momentum products; see how we are paid. Last reviewed 20 October 2026.

Frequently asked questions

Do all NZ unions pay a death benefit?

No. Of the four union sites we read, only the RMTU listed one.

How much does the RMTU pay?

The RMTU says $1,000 on the death of a current member and $500 on the death of a current member's spouse.

Does a union death benefit replace funeral insurance?

It cannot reasonably do so at these amounts. The FDANZ average for a cremation with no service is $4,700.

Will I still get the Funeral Grant?

Work and Income looks at other help available. Ask them whether a union payment counts before you apply.

References

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