How to cancel funeral insurance in NZ and use the 30-day cooling-off

Written by Henry Smith · Reviewed by Smiths Insurance & KiwiSaver, licensed Financial Advice Provider (FSP712931) · Updated 2026-10-20 · Reviewed quarterly, when the underlying data is restated.

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.

To cancel Momentum Life's Funeral Insurance, you call or write to Momentum. If you do it within 30 days of the Acceptance Date and no claim has been made, you get a full refund of the premiums paid. After that, cancelling needs 30 days' notice, by phone or a signed letter by post or email, and no premiums are refunded.

This page uses Momentum Life's Funeral Insurance wording (issue date 17 August 2023) because it is the policy we can read in full. Other insurers set their own free-look periods and notice rules, so check your own Policy Schedule and policy document. AA Life says it refunds 100% of premiums in its 30-day no-obligation period (AA Life), and OneChoice says you cannot get a refund of premiums after its cooling-off period (OneChoice). The cooling-off period is set by the insurer's own terms, so do not assume 30 days applies to a policy you have not checked.

What happens to your money

Situation	Result under Momentum's wording
You cancel within 30 days of the Acceptance Date, no claim made	Full refund of premiums paid
You cancel after the 30 days	30 days' notice; no refund of premiums; you would need to reapply for cover
The person insured dies of an illness in the first 24 months while the policy is in force	No benefit; all premiums paid for that person are refunded
You stop paying	Momentum can cancel if a premium stays unpaid for more than one month, after writing to you; reinstatement is by application and is not guaranteed
A claim happens after cancellation	Nothing is payable once cover has ended

The wording also says that if you cancel, each person insured loses the benefit of the premiums already paid. The wording we read describes no cash value or surrender value. This is why funeral insurance is not a savings product: the only money that comes back is the refund on a cancellation in the free-look period and the refund when someone dies of a non-accidental cause in the first 24 months.

How to cancel, step by step

Find your Acceptance Date. It is on your Policy Schedule. The 30 days run from that date, not from your first payment. Count the days before you decide.
Decide what you need to cancel. If the policy covers more than one person, you can ask to remove one person, and cover for that person ends on the date you remove them. Cancelling the whole policy ends cover for everyone on it.
Check the notice you are giving. Inside the free look, you cancel by calling or writing. Later, the wording asks for 30 days' notice, given by phone or a signed letter by post or email.
Contact Momentum. You can call or send a signed cancellation letter by post or email. Momentum lists customer support on 0800 111 679 (Momentum Life: Claims); use the postal or email address given on your policy documents or Momentum's contact page.
Keep a record. Note the date, time and name of the person you spoke to, or keep a copy of the signed letter. Ask Momentum to confirm in writing the date cover ends, whether any premium is due in the notice period and, if you are within the free look, how and when the refund will be paid.
Check your bank. Do not cancel a bank payment until the end date is confirmed. A premium that goes unpaid is treated differently from a cancellation: Momentum can cancel for non-payment, and reinstating the policy afterwards is not guaranteed.

A letter you can adapt

Use your own details. The headings below are the details an insurer needs to find the policy, not a form it requires.

[Date]

To: Momentum Life

Policy number: [from your Policy Schedule] Policy owner: [full name and address held on the policy] People insured: [names on the policy] Acceptance Date: [from your Policy Schedule]

I am the policy owner. I cancel the Funeral Insurance policy above. [Choose one: I am cancelling within 30 days of the Acceptance Date and no claim has been made; please refund all premiums paid. / Please treat this letter as 30 days' notice of cancellation.]

Please confirm in writing the date cover ends, whether any premium is still due and, if relevant, how the refund will be paid.

[Signature and printed name]

Questions to ask before you cancel

People give up cover for many reasons, and some are sound. Before you do, ask:

Is the cost the problem? Premiums under Momentum's policy are fixed each year until the 89th birthday, but the rate can change for everyone on the same offer, with 30 days' notice. Compare what you are paying with the benefit in our cost guide.
Is the cover duplicated? If you hold more than one funeral policy, or a life policy that already pays money early for a funeral, one may be surplus. See holding more than one funeral policy.
Is another route in place? Savings or a prepaid plan can replace insurance. Our page on whether funeral insurance is worth it sets out the trade-offs.
Could you restart later? You would reapply, subject to Momentum's entry age of 40 to 75, at a premium based on your age then. Independent sites show funeral insurance prices roughly doubling between ages 50 and 70 (Moneyhub). A new policy also begins with its own early period, when only an accident is paid.
Are you near the 24-month mark? If you are inside the first 24 months, cancelling forfeits premiums and loses the accident cover. After 24 months, the policy pays for death from any cause. Our page on the first 24 months explains how that refund works.

Alternatives to cancelling

The wording describes a few options short of cancelling. The owner can apply to change how often premiums are paid (fortnightly, monthly or annually) and can remove a person from the policy. It describes ways to increase a benefit; we found no wording about reducing one, so ask Momentum if that is what you want. If you are moving to another insurer, read switching funeral insurance first: cancelling before the new policy has started leaves you without cover, and the new policy has its own early window.

If the person insured has died, do not cancel. Benefits are paid to the policy owner or, if the owner has died, to the beneficiaries nominated, or to the owner's executor, and a claim is not paid if the policy has been cancelled or premiums due are unpaid. Our guide on how to claim has the steps, and probate in New Zealand covers the executor's role.

Where to get independent advice

If you think Momentum has handled a cancellation unfairly, make a complaint on 0800 108 108 first. If you are not satisfied, the Insurance & Financial Services Ombudsman Scheme (IFSO) is free and its assessment is binding on Momentum (IFSO). A licensed adviser can look at your whole cover. The buttons on this page open Momentum Life's online application, and are for someone who wants new cover rather than to cancel. Momentum Life Limited is rated B (Fair) by A.M. Best, a rating Momentum's own table groups in its "Vulnerable" range; read its financial strength page. Total premiums can exceed the benefit, and the benefit may not cover the whole funeral. QuoteHub is a Momentum Life partner and Smiths Insurance & KiwiSaver may receive a commission if you buy a Momentum policy. 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, or see the Momentum Life Funeral Cover page.

If you are planning ahead for your own funeral costs

Get a quote and apply online today

See your price in about a minute, then apply online with Momentum Life. Guaranteed acceptance, no health questions, no medical exams.

Life cover See your price Ages 18–65 · $50k–$300k Funeral cover See your price Ages 40–75 · $3k–$30k

Want more than $300k or have questions? Talk to an adviser

Life cover: Conditions you already have aren't covered for the first 2 years (premiums refunded instead). Suicide isn't covered for the first 2 years, and a few conditions can be excluded permanently.

Funeral cover: Only accidental death is covered for the first 2 years. Total premiums can add up to more than the cover, and it may not meet the whole cost of a funeral.

Insurer: Momentum Life Limited. Financial strength rating B (Fair) from AM Best, affirmed 11 February 2026; B ratings sit in AM Best's 'vulnerable' range. The rating scale is available for inspection at every Momentum Life office in New Zealand. What this means

Already have cover? Keep it. New cover won't pay for a condition you already have in its first 2 years.

Opens Momentum Life's online application; its guidance only covers eligibility. QuoteHub is a Momentum Life partner. Smiths Insurance & KiwiSaver may receive a commission if you buy. General information, not advice.

Adviser's view

Cancelling inside the free-look period is simple and refunds your premiums if no claim has been made. Cancelling afterwards ends the cover and returns nothing, and you would need a new application to get it back, at an older age and with a fresh early window. If cost is the problem, check your options before you cancel.

Henry Smith, Financial Adviser (FSP1010699). General information, not personalised financial advice.

Talk to a licensed adviser about funeral cover · free, no obligation.

Cite this page QuoteHub NZ (2026). Cancel Funeral Insurance NZ: 30-Day Cooling-Off. www.quotehub.co.nz/funeral-insurance/cancel-funeral-insurance-nz. Updated 2026-10-20.

References

Explore related pages: Life Insurance, Income Protection, Health Insurance, Trauma Insurance, Referral.