Funeral cover for children: eligibility and legal limits

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.

You cannot buy funeral insurance for a child from Momentum Life. Its Funeral Insurance accepts people aged 40 to 75 and Quick Life accepts ages 18 to 65. Most New Zealand insurers also do not sell a standalone life or funeral policy on a young child, and the Life Insurance Act 1908 limits who may insure a child under 16.

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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.

If you are reading this because a child has died, we are sorry. The page explains what insurance does and does not do, then the money that can help. In short, the main sources are the Work and Income Funeral Grant, ACC where an injury caused the death, council fees that are lower for children, and a death benefit that some parents' policies already include. What does exist for children is usually not a policy in the child's name. It is a small funeral or death benefit built into a parent's life cover, which does not need a separate application, so the first thing to do is read your own policy schedule or ask your insurer or adviser what it includes. Savings, a grant and family help fill the rest.

Can I buy funeral cover for a child in NZ?

Not from the insurers we reviewed. No insurer QuoteHub tracks sells a standalone life policy to a young child as a mainstream product. The cover a child usually has comes as a benefit inside a parent's trauma or life cover; our guide on life insurance for children sets out what each insurer includes. Adult funeral policies, such as Momentum Life's, are not designed for this and cannot be used for a child, as the table below shows.

What are the legal limits on insuring a child?

The Life Insurance Act 1908 is still in force and has rules for policies on a child under 16. As QuoteHub reads it, section 67 says who may take out a policy on a child under 16: the child's parents or guardians, one of them jointly with their spouse, or a person the District Court has consented to. Section 67B limits what can be paid if a child dies under 10: the premiums paid with interest, plus an amount that, with other insurers' payments, equals $2,000 or a larger sum set by Order in Council (Life Insurance Act 1908). The Contracts of Insurance Act 2024 comes into force on 15 November 2027 (not yet in force) (FMA). Our page on life insurance for grandchildren explains both Acts in more detail, including who needs court consent. This page is general information and not legal advice; a lawyer can confirm how the rules apply to you.

New Zealand law does not require an insurable interest in a life, so these rules are about who may take the policy out and who may be paid, not about whether a parent has a financial stake (Insurance Law Reform Act 1985, s 6).

Does Momentum Life offer child funeral cover?

No. Momentum's products have adult entry ages, so neither can cover a child.

	Entry ages	Can it cover a child?
Funeral Insurance	40 to 75	No
Quick Life	18 to 65	No

Sources: Momentum Life: Funeral Insurance Policy Wording and Quick Life Policy Wording. The buttons on this page open Momentum Life's online application for an adult's own cover. They are not a way to insure a child. If you are an adult considering funeral cover for yourself, our funeral insurance hub explains it, and the policy has a 24-month accident-only window and premiums that can add up to more than the benefit.

What exists instead: a benefit inside a parent's policy

Some insurers pay a small amount if a child on a parent's policy dies. These are published figures from the insurers' documents, as summarised in our children's guide (retrieved 9 to 16 September 2026):

Insurer	Benefit	Amount
Partners Life	Dependent Child Funeral Support Benefit	$2,000 under 10, or $15,000 from 10 to 21
Booster (SmartCover)	Child death expenses	$2,000 under 10, or $5,000 from 10 to 18
Pinnacle Life	Children's funeral payment	Bundled into Life Cover; amount not published

The figure for a child under 10 matches the $2,000 in the Act. Sources: Partners Life and Booster. Check your own schedule for the current amount and ages, because cover varies by policy and date. A children's trauma benefit, which pays for a serious illness and not a death, is a separate thing and is covered on the same guide.

Money that can help with a child's funeral

Work and Income Funeral Grant. The maximum is $2,697.43. It is available if you arrange the funeral of your child under 18, and the child normally lived in New Zealand. For a child's death it is income-tested. You must be under these annual before-tax limits: single aged 16 to 17, $33,518.68; single aged 18 or over, $38,522.12; in a relationship, $55,954.08; single with one other child, $46,745.92; single with two or more other children, $49,248.68. The first $2,351.46 of your assets is ignored, and the child's assets are counted. Family home, car, furniture and possessions are not assessed when the deceased was a child. Help from "prepaid funeral cover" can stop you getting it, so ask Work and Income how any insurance benefit would be treated (Work and Income: Funeral Grant). A grant is payable for a stillborn baby of 400 g or more, or after the 20th week of pregnancy (Work and Income). See funeral grant for a stillborn child.
ACC. If a covered injury caused the death, ACC's funeral grant is up to $8,236.40 (page published 22 July 2026), and the form is ACC21 (ACC).
Bereavement leave. Employees get 3 days' leave for the death of a child (Holidays Act 2003, s 69).

What a child's funeral can cost

Council fees are often lower for children. These are published figures for the dates shown.

Provider	Child or infant charge
Auckland Council (as published 20 October 2026)	Cremation: $410 aged 1 to 12; $0 under 1
Dunedin City Council (2026/27)	Crematorium fee $209.40 for under 10; burial rights $1,440.10 and interment $1,395.80 for under 10 at the 14 main cemeteries
Nelson City Council (2026/27)	Infant plot free, burial $400; child plot $1,807, burial $827
Dils (North Shore, price list as at May 2026)	Professional fee for an infant or child $800 to $4,770

Sources: Auckland Council, Dunedin City Council, Nelson City Council and Dils. These are not like-for-like and a director's fee is not the whole cost. Ask your funeral director for an itemised estimate, as members of the Funeral Directors Association of New Zealand commit to being open about costs (FDANZ 2026 report). Our guide to funeral costs for infants and children goes further, and our funeral costs hub covers adults.

FDANZ also names the Salvation Army, GiveALittle and iwi or Māori land trust grants as other sources of help (FDANZ: financial matters). A council may bury or cremate a poor person free of charge in some circumstances under section 49 of the Burial and Cremation Act 1964 (Burial and Cremation Act 1964).

Where to get support

The grief support guide lists services for bereaved families. A funeral director can explain what is needed and when. If you are planning for your own funeral cover and want to compare adult options, a licensed adviser can help. 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 a Momentum policy; Momentum Life Limited is rated B (Fair) by A.M. Best, a rating Momentum's own table groups in its "Vulnerable" range (see its financial strength page). Back to the funeral insurance hub, or read funeral insurance for parents.