Funeral insurance for family and extended family
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.
Yes, in a limited way. Momentum Life's Funeral Insurance allows up to four people to be insured on one policy, but each must be the owner's partner or a listed relative, aged 40 to 75, and a New Zealander. Each person has their own benefit and their own 24-month wait. It is not a group plan for a whole extended family.
What "family funeral insurance" means at Momentum
Momentum Life Limited's Funeral Insurance wording offers two set-ups: "Single – You or a Partner/Relative" and "Family – Up to four Lives Insured", with the note that "additional persons must be a Partner/Relative" (Momentum Life: Funeral Insurance Policy Wording). The person who owns the policy is the Policy Owner. The people covered are the Lives Insured. Additional Lives Insured receive a $150 discount each year. Acceptance is guaranteed for New Zealanders aged 40 to 75, with no health questions, and the benefit for each person is a chosen amount from $3,000 to $30,000. It is still individual cover on a shared policy: each person's cover is priced at their own rate and ends when that person's benefit is paid. Our hub page on what funeral insurance is covers the basics, and the Funeral Cover plan page the product.
Who counts as a relative
The wording defines a Relative as a New Zealander who is the owner's partner, or the parent, grandparent, brother, sister, uncle, aunt, nephew, niece, or natural or legally adopted child of the owner or of the owner's partner. A Partner is the legal husband or wife, a de facto partner or a civil union partner. In practice:
| Person | Counts as a Relative? |
|---|---|
| Spouse, de facto or civil union partner | Yes (as Partner) |
| Your parent or grandparent | Yes |
| Your brother, sister, uncle, aunt, nephew or niece | Yes |
| Your adult child (natural or legally adopted) | Yes |
| Your partner's parent, sibling or child | Yes, as relatives of the owner's partner |
| Grandchild | Not listed |
| Cousin | Not listed |
| Friend, neighbour or colleague | Not listed |
Whether a stepchild counts depends on whether they are the natural or legally adopted child of you or your partner. We have not confirmed how Momentum treats other family arrangements, such as whāngai without legal adoption, so ask before you assume.
What each person must meet
Each Life Insured has to meet the rules on their own. Each must be a New Zealander at application: living in New Zealand and an NZ or Australian citizen, a permanent resident visa holder, or in New Zealand continuously for at least 12 months on a valid temporary work visa. Each must be aged 40 to 75 at entry. The maximum is $30,000 per person across all Momentum funeral policies, and if a person is covered under more than one, any excess is cut from the newest and its premiums refunded.
What happens in the first 24 months
The wait applies life by life. For each person, the first 24 months pay only if death is the direct result of an accident and happens within 90 days of it, in which case the benefit triples. For any other death in that window, no benefit is paid and all premiums for that person are refunded. Adding a person to an existing policy starts their own 24 months. After 24 months a death from any cause is covered. Compare the details on the waiting period page.
Owning a policy on a parent
An adult child can own a policy on a parent, because the wording counts a parent as a relative. The owner must be a natural person and a New Zealander, and the benefit is paid to the owner when the person insured dies, as the wording sets out. The owner also pays the premiums. The wording we read does not say whether the insured person's consent is required, so ask Momentum, and discuss it with your parent first. Read more in funeral insurance for parents. If the parent is under 40 or over 75, Momentum cannot accept them at all.
Cost: what we can and cannot say
QuoteHub does not publish an exact Momentum premium, so we cannot tell you what four people would pay. What the wording gives us is the $150 yearly discount for each additional Life Insured, and that premium rates are fixed each year until each person's 89th birthday, with any change applying to everyone on the same offer on 30 days' notice. Because the policy is not a savings plan, total premiums can exceed the benefit for a person who lives long, and the benefit may not cover a whole funeral. Test the sums for each person with our funeral insurance cost guide.
For family members Momentum cannot cover
- A different insurer. Other New Zealand funeral products set their own ages and definitions. Unity says it offers cover from 18 to 75 with up to ten additional lives, though we have not read its policy document (Unity: Funeral insurance). AA Life and Chubb Life each advertise a 20% joint discount (AA Life, Chubb). See our joint funeral insurance page and the comparison of options.
- A policy of their own. A relative aged 40 to 75 who is a New Zealander can apply as the owner of a single policy.
- Saving. A shared savings pot or a prepaid plan avoids the 24-month wait and does not depend on anyone's age.
- The Funeral Grant. Work and Income pays up to $2,697.43 where the person who died was your partner, your parent or guardian, your child under 18, or a single person over 18 whose funeral you arrange, subject to income and asset tests (Work and Income: Funeral Grant).
Who this suits
A family policy suits a couple or a household in which several people are 40 to 75, all New Zealanders, who want to hold one policy and are comfortable with the waiting period for each person. It suits less well a family with younger members, a wide extended group or anyone who needs cover above $30,000 each. For the question of whether any of this is worth it, read is funeral insurance worth it.
Getting advice
The buttons on this page open Momentum Life's online application for Funeral Insurance. Momentum Life holds an A.M. Best rating of B (Fair), in the range Momentum calls "Vulnerable"; see its financial strength page. 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
There is no wide group plan for a whole whānau, but Momentum does let one owner cover up to four people on one policy. Each person is age-checked, has their own 24-month wait and benefit, and must be a partner or listed relative. Cousins, grandchildren and friends are outside the definition, so they would need policies of their own.
Talk to a licensed adviser about funeral cover · free, no obligation.
Cite this page QuoteHub NZ (2026). Family Funeral Insurance NZ: Cover and Ownership. www.quotehub.co.nz/funeral-insurance/family-funeral-insurance-nz. Updated 2026-10-20.
References
- Momentum Life: Funeral Insurance Policy Wording (PDF, issue date 17 August 2023)
- Momentum Life: Financial Strength
- Unity: Funeral insurance
- AA Life: Funeral cover
- Chubb: Funeral cover
- Work and Income: Funeral Grant
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