Funeral cover for pensioners in New Zealand

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.

Pensioners aged 65 to 75 can apply for Momentum Life's Funeral Insurance, which accepts New Zealanders aged 40 to 75, pays a fixed benefit of $3,000 to $30,000 and has premiums that stay level each year until the 89th birthday. From the 76th birthday Momentum takes no new applicants. NZ Super starts at 65, so pensioners aged 76 and over need another insurer, a prepaid plan or savings.

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

Want more cover or have questions? Talk to an adviser

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.

Funeral cover for pensioners is the same product as for anyone else: a funeral insurance policy that pays a fixed lump sum when the insured person dies. What changes with a pension is the budget. Premiums are paid fortnightly, monthly or annually for many years, and they come out of a fixed income. Under Momentum's Funeral Insurance the first 24 months pay only for an accidental death within 90 days of the accident; any other death in that window pays no benefit and returns all premiums for that person. After 24 months it pays for death from any cause. The total premiums can end up larger than the benefit, and the benefit may not cover the whole funeral (Momentum Life: Funeral Insurance Policy Wording).

What is open to a pensioner, by age

NZ Super is paid from age 65 (Work and Income: NZ Super). Here is whether each funeral policy's published entry ages include you, as at 20 October 2026.

Your age	Momentum Life	NZ Seniors, OneChoice	AA Life	Chubb Life
65 to 75	In range	In range	In range	In range
76 to 79	Above entry age	In range	In range	In range
80	Above entry age	Above entry age	Above entry age	In range
81 and over	Above entry age	Above entry age	Above entry age	Above entry age

Entry ages are Momentum 40 to 75, NZ Seniors and OneChoice 18 to 79, AA Life 50 to 79 and Chubb Life 50 to 80. Not every insurer is included. For the over-80 position see funeral insurance over 80. Our seniors funeral insurance guide covers the wider picture.

Does a premium fit on NZ Super?

Momentum publishes no funeral premium, and the figures below are not anyone's price. They show how a round premium sits against the pension. From 1 April 2026, NZ Super after tax (tax code M) is $1,110.30 a fortnight for a single person living alone and $854.08 a fortnight each for a couple who both qualify (Work and Income: benefit rates from 1 April 2026). Other income, rent and health costs change the picture for each person.

Illustrative premium a fortnight	Share of single NZ Super	Share of each partner's NZ Super	Total over 10 years	Total over 20 years
$20	1.8%	2.3%	$5,200	$10,400
$40	3.6%	4.7%	$10,400	$20,800
$60	5.4%	7.0%	$15,600	$31,200

The totals assume 26 fortnightly payments a year. Set them beside the benefit. At the $60 row, 20 years of premiums comes to more than $30,000, which is Momentum's maximum benefit. That does not make cover poor value for every pensioner: how long you pay depends on how long you live, and your own premium may be lower or higher than these round numbers. It does show why the break-even point is worth working out before you commit. The funeral insurance break-even calculator does the sum with your own figures.

What "level premium" does and does not mean

Momentum's premium rate stays the same each year until the 89th birthday, then premiums stop and cover continues for life. That helps a budget, because the premium does not rise with age. It is not a promise that the amount can never change. Momentum can change the rate for everyone on the same plan only for a change in tax or other law, or if claims experience is significantly different from expected, on 30 days' written notice.

If a payment is missed, Momentum can cancel the policy after a month unpaid, and reinstating it is by application and not guaranteed. You can also cancel at any time on 30 days' notice, but premiums paid are not returned (apart from the 30-day free look from the acceptance date). A card payment carries a processing fee; the wording gives no percentage.

The Funeral Grant and funeral insurance

The Work and Income Funeral Grant is up to $2,697.43 (page updated 24 June 2026). When the person who died was single, their own assets count against the expenses, and Work and Income's assets guide counts life insurance proceeds and prepaid funeral accounts as cash assets (Work and Income: definition of assets). The grant page also says prepaid funeral cover can stop you getting the grant (Work and Income: Funeral Grant). So do not plan on the grant as a top-up to a funeral policy. Check your own case with the Funeral Grant checker or our funeral grant guide.

Other ways to prepare

Prepaid funeral plans. Now For Them, run by The Funeral Trust Services Limited for FDANZ, says it is not a savings or investment product and pays no interest. Its first $10,000 is excluded from residential care asset testing under current Ministry of Social Development policy (FDANZ: Now For Them). See funeral insurance against prepaid funerals.
Savings. A named account kept for the funeral costs you the interest you would earn elsewhere but no premiums. FDANZ's 2026 report puts a full funeral with 50 guests at an average of $11,700 for a cremation and $14,300 for a burial, and an unattended cremation at $4,700 (FDANZ, 2026 Industry Trends Report).
Other insurers and fully underwritten cover. A licensed adviser can tell you what is on offer for your health, with no promise of acceptance.

Questions pensioners ask

Can I get Momentum funeral cover at 76? No. The wording sets entry at 40 to 75, and Momentum accepts no new applicants after that. Quick Life, the other Momentum product, accepts ages 18 to 65, and for its first 2 years excludes pre-existing conditions and suicide.

Can a family member pay for it? An adult child can own a policy on a parent, because a parent counts as a "Relative" in the wording, and pay the premiums. See funeral insurance for parents.

Does it matter if I am on a benefit as well as NZ Super? Momentum's wording sets no income test. What matters is whether you can keep up the payments.

Where to get advice

The buttons on this page open Momentum Life's online application: Funeral Insurance (ages 40 to 75) and Quick Life (ages 18 to 65, which is closed to anyone past 65). Momentum Life Limited's financial strength rating from A.M. Best is B (Fair), affirmed 11 February 2026, which Momentum's own table places in its "Vulnerable" range; 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. For a Momentum policy, complain to Momentum first, then to the Insurance and Financial Services Ombudsman scheme (IFSO). Advice is provided by Craig Smith Business Services Limited, trading as Smiths Insurance & KiwiSaver, a licensed Financial Advice Provider (FSP712931). This page is general information, not advice. Back to the funeral insurance hub.

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.

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

Want more cover or have questions? Talk to an adviser

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.

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

Adviser's view

Pensioners aged 65 to 75 can apply for Momentum's Funeral Insurance, and some other insurers accept people up to 79 or 80, but the product does not suit everyone on a fixed income. Premiums are paid for years, only accidents pay in the first 24 months, and the total can pass the benefit. For some pensioners, setting money aside is the better tool.

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). Funeral Cover for Pensioners NZ: Costs and Limits. www.quotehub.co.nz/funeral-insurance/funeral-cover-for-pensioners-nz. Updated 2026-10-20.

References

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