AA funeral insurance: cover, costs and alternatives
Financial advice is provided by Craig Smith Business Services Limited, trading as Smiths Insurance & KiwiSaver, a licensed Financial Advice Provider (FSP712931). QuoteHub is a trading name.
AA funeral insurance is AA Life Funeral Cover. The New Zealand Automobile Association distributes it, and Asteron Life Limited provides and underwrites it. The covered person must be 50 to 79, the benefit is $5,000 to $30,000, and cover for non-accidental death starts after 24 months. Accidental death is covered once acceptance is confirmed.
Who is behind AA funeral cover
AA Life Funeral Cover is not underwritten by the AA itself. AA's own page says the cover is "distributed by the New Zealand Automobile Association (Incorporated)" and "provided and underwritten by Asteron Life Limited" (AA Life: Funeral cover). That matters for two reasons. The insurer that pays the claim is Asteron Life, and the financial strength rating that applies is Asteron's. AA's page prints that rating as "A+ (Strong)" from Fitch Australia Pty Ltd, with no date on the page.
Asteron Life was sold by Suncorp to Resolution Life Australasia, with the sale completed on 3 February 2025 (Suncorp NZ). Asteron's own site says Asteron Life and Resolution Life New Zealand will become Acenda Life, phased from 2027 and subject to regulatory approval (Asteron: Acenda Life). That page does not mention AA Life, so we make no prediction about it. If you buy, keep your policy documents and check them against the insurer's name at the time.
What AA's page says about the cover
The table below is taken from AA's page as read on 20 October 2026. Check it again before you apply, because AA can change it.
| Point | What AA publishes |
|---|---|
| Covered person | Aged 50 to 79 when the policy is taken out, and in New Zealand when you apply |
| Benefit | $5,000 up to $30,000, paid as a tax-free lump sum |
| Health questions | None: "Guaranteed acceptance with no medical questions" |
| Accidental death | Covered once acceptance is confirmed; death within 90 days of the accident pays double the cover amount |
| Non-accidental death and terminal illness | Cover "starts after 24 months" |
| Early death from natural causes | All premiums paid are refunded if the person dies from natural causes in the first 24 months |
| Free look | 30-day no-obligation period with a full refund of premiums, if no claim has been made |
| Premiums | Payable until the policy anniversary after the 90th birthday; cover then continues at no extra cost |
| Discounts | 5% for an AA Member (a valid membership number is needed; the discount applies to the total premium); 20% joint discount if two people apply within 48 hours of each other |
Asteron's funeral policy wording dated 15 November 2024 adds that the most Asteron will pay on one person across all of its funeral policies is $30,000, and that the policy runs on a one-year renewable term. Any premium rise is applied to all policies on the same offer (retrieved 17 October 2026).
What it costs
AA is one of the few insurers that publishes a price. The page shows cover "from $14.28/week" for $10,000 of cover for a 66-year-old female AA Member who is a non-smoker (AA Life: Funeral cover, 20 October 2026). That is one profile only. Your price depends on your age, the amount, whether you are an AA Member and whether you apply jointly. AA's own quote shows yours, and the page says that takes around two minutes.
QuoteHub does not publish an exact Momentum premium, so we cannot put a Momentum figure beside AA's. What we can say is that AA's price example is for a 66-year-old at $10,000, and a like-for-like comparison needs both insurers' quotes for the same age and amount. As with every funeral policy, the premiums you pay over the years can add up to more than the benefit, and the benefit may not cover the whole funeral. Our funeral insurance cost guide explains how to test that.
The waiting period, in plain terms
For non-accidental death, AA and Momentum have the same shape: a 24-month wait, with premiums refunded for a natural-cause death inside it. In that window:
- An accident is covered. AA pays double the cover amount if the person dies within 90 days of the accident.
- Death from illness or any other cause pays no benefit, and AA refunds the premiums paid.
- Terminal illness is not covered until the 24 months have passed. AA treats it the same way as non-accidental death.
Someone who is already unwell should read this closely. The policy takes you without health questions, and it makes up for that by waiting.
AA and Momentum compared
Both products are guaranteed-acceptance funeral policies, so the differences are in the details.
| AA Life Funeral Cover | Momentum Life Funeral Insurance | |
|---|---|---|
| Insurer | Asteron Life Limited | Momentum Life Limited |
| Entry age | 50 to 79 | 40 to 75 |
| Benefit | $5,000 to $30,000 | $3,000 to $30,000 |
| Accident in first 24 months | Double, death within 90 days | Triple, death within 90 days |
| Other death in first 24 months | No benefit; premiums refunded | No benefit; all premiums for that person refunded |
| Terminal illness benefit | Yes, after 24 months | No |
| Premiums stop | Anniversary after the 90th birthday | 89th birthday |
| Published price | From $14.28 a week, one stated profile | None published |
| Rating | Fitch Australia: A+ (Strong), as AA prints it | A.M. Best: B (Fair) |
The two ratings come from different agencies on different scales, so they cannot be compared letter for letter. Momentum's rating sits in A.M. Best's "Vulnerable" range on Momentum's own table, and the detail is on its financial strength page. Momentum's cover is for New Zealanders: its wording defines that as living in New Zealand and holding citizenship or a permanent resident visa, or having been here continuously for 12 months on a work visa (Momentum Life: Funeral Insurance Policy Wording).
Who each one fits
- Aged 40 to 49: AA does not accept you; Momentum does.
- Aged 50 to 75: both accept you. Compare the price for your own age and amount, the terminal illness benefit and the accident multiple.
- Aged 76 to 79: AA still accepts new applicants and Momentum does not. NZ Seniors and OneChoice, both issued by Pinnacle Life, also accept to 79.
- Aged 80 or more: check each insurer's current limits, or speak to a licensed adviser. Our page on Asteron funeral insurance and the AA versus Momentum comparison go further.
How to apply, and how to claim
AA's page says you can get an online quote and then apply online, at an AA Centre or by phone. To claim, it says to contact the insurer as soon as you can, and it does not list documents or timings on that page, so ask before you need to. A policy owner who wants to understand a claim can ask AA for the full policy wording.
What to check before you buy
- Read the policy document, not only the product page, for the exact definition of an accident and the terminal illness terms.
- Add up the premiums you would pay to the age you expect to reach, and compare that with the benefit.
- Check whether you already hold funeral cover with the same insurer, because the $30,000 limit applies across policies.
- Compare at least one other insurer on your own age and amount. Our funeral insurance comparison and the page on how the options compare set out the main ones.
Where to get advice
The buttons on this page are for Momentum Life, which is one option, not the only one. If you want advice on AA, Momentum or any other cover, a licensed adviser can compare them on your own details. QuoteHub is a Momentum Life partner and Smiths Insurance & KiwiSaver may receive a commission if you buy a Momentum policy; see how we are paid. Advice is provided by Craig Smith Business Services Limited, trading as Smiths Insurance & KiwiSaver, a licensed Financial Advice Provider (FSP712931). Back to the funeral insurance hub.
Adviser's view
AA's funeral cover is one of the few with a published price, and its entry band starts and ends later than Momentum's, 50 to 79 against 40 to 75. It also has the same 24-month wait before non-accidental death is covered, and it pays double rather than triple for an accident. Which suits depends mostly on your age, since the two cover different bands.
Talk to a licensed adviser about funeral cover · free, no obligation.
Cite this page QuoteHub NZ (2026). AA Funeral Insurance NZ: Cover, Limits and Alternatives. www.quotehub.co.nz/funeral-insurance/aa-funeral-insurance-nz. Updated 2026-10-20.
References
- AA Life: Funeral cover
- Asteron Life: Financial strength
- Asteron Life: Acenda Life
- Suncorp NZ: Completion of Asteron Life sale
- Momentum Life: Funeral Insurance Policy Wording (PDF, issue date 17 August 2023)
- Momentum Life: Financial Strength
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