Cashback rewards versus a funeral insurance cash benefit

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.

In funeral insurance, "cash back" usually means a refund of premiums, not a bonus on top of the death benefit. Momentum Life's policy wording contains no cashback feature. It does refund all premiums for a person who dies of a non-accidental cause in the first 24 months, but that refund exists because the benefit is not paid in that case. It is a limit on cover, not a reward.

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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.

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.

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.

People searching for cash back on funeral cover are usually trying to find one of three things. The first is money returned to them, such as premiums refunded in the free-look period or in the early window. The second is the cash lump sum the policy pays when someone dies; Momentum's wording describes "fast cash payments usually within 24 to 48 hours" of claim approval, paid to the policy owner or the named beneficiary. The third is a promotion, rebate or reward offered by a seller. The policy wording is the contract. A promotion, if it exists, is governed by its own terms, so ask for them in writing before you rely on it.

Is cash back the same as the death benefit?

No. The death benefit is the amount you choose when you take out the policy: with Momentum Life's Funeral Insurance, $3,000 to $30,000, tripled for an accidental death within 90 days of the accident. It is paid once, when the person insured dies and the claim is approved. Cash back, in the sense of money returned, comes from premiums you have already paid. The two do not add together unless the policy says so.

Does Momentum Life offer a cashback feature?

The policy wording does not. We found no cashback, rebate or loyalty payment in the Funeral Insurance wording (issue date 17 August 2023). Some marketing and summaries have described a premium rebate on Momentum funeral policies. We could not find one in the wording and cannot confirm that any such offer is current, so we do not rely on it, and neither should you without Momentum's written terms. What the wording does contain is the 24-month refund described below, and a 30-day free look.

What refunds apply during the first 24 months?

For the first 24 months from the Cover Start Date, the policy pays a benefit only if the person insured dies as the direct result of an accident and the death occurs within 90 days of it. If they die within 24 months from any other cause, no benefit is paid and Momentum refunds all premiums paid for that person. After 24 months, death from any cause is covered. An increase in the benefit, or a person added to the policy, starts a new 24-month window for that increase or person (Momentum Life: Funeral Insurance Policy Wording). The refund is therefore the insurer returning your money because it will not pay; the family receives no funeral benefit. Our page on the first 24 months goes through it in detail.

Can premiums be refunded if the policy is cancelled?

Only inside the free look. You have 30 days from the Acceptance Date to cancel and receive a full refund of premiums, provided no claim has been made. If you cancel outside that period, there is no refund of premiums. The wording does not describe a cash value or surrender value. Our guide to cancelling funeral insurance has the steps.

How the money-back features compare

Details are from each provider's own pages, retrieved 17 to 20 October 2026. Check current terms before you apply.

	Premiums refunded on other death in the early window	Early window	Free-look refund	Published discounts or extras
Momentum Life	Yes, all	24 months	Full refund within 30 days of the Acceptance Date, if no claim	$150 a year off for extra lives insured
AA Life (Asteron Life)	Yes, 100%	24 months	100% in the 30-day no-obligation period	5% AA Member discount, 20% joint discount
Chubb Life	Yes, 100%	24 months	Check the policy documents	20% joint discount
Greenwich Life (Autosure)	Yes, 100%	Two years	Check the policy documents	None found
NZ Seniors and OneChoice (Pinnacle Life)	No	12 months	OneChoice says no refund after the cooling-off period	NZ Seniors adds 25% Bonus Cover at 85

Sources: Momentum Life policy wording, AA Life, Chubb, Greenwich Life, NZ Seniors, OneChoice. A discount lowers a premium; it is not cash back. Bonus Cover raises a benefit; it is not cash back either.

How does a cash benefit differ from a savings plan?

Funeral insurance is not a savings or investment plan. Momentum's wording says so, and adds that depending on how long you keep the cover, total premiums could exceed the benefit. A savings account earns interest and stays yours. A funeral policy pays nothing back if you cancel after the free look, and a person who pays premiums for many years may pay more than the benefit. That is the basic trade. Our cost guide and how funeral insurance works explain how premiums behave.

What to check before buying a policy advertised with cash back

Where is the offer written? In the policy wording or product disclosure, or only in an advert or a seller's page? Ask for the terms.
Who pays it? The insurer, or a reseller or comparison site? Ask who funds it and what happens to it if you cancel.
Is it conditional? A rebate can depend on keeping the policy for a period, paying a certain way or being a member of a group.
Does it change the comparison? Work out total premiums for the same age and amount across insurers with and without the offer. The Insurance & Financial Services Ombudsman Scheme says insurers should warn you that you may pay more than you get back, in the policy, on the website and in advertising (IFSO).
Is the policy right in the first place? A reward does not fix a mismatch of age, early window or benefit. See is funeral insurance worth it.

Where to get advice

The buttons on this page open Momentum Life's online application. 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. A licensed adviser can compare options on your details. Advice is provided by Craig Smith Business Services Limited, trading as Smiths Insurance & KiwiSaver, a licensed Financial Advice Provider (FSP712931). More on the plan is on the Momentum Life Funeral Cover page, and the funeral insurance hub lists every guide.