Does funeral insurance cover COVID-19 and pandemic deaths in NZ?

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.

Under Momentum Life's Funeral Insurance, a death from COVID-19 is a death from illness, not an accident. In the first 24 months no benefit is paid and all premiums for that person are refunded. After 24 months the benefit is paid for death from any cause. The wording does not mention COVID-19 or pandemics.

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.

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 insurance is a fixed benefit of $3,000 to $30,000 that Momentum Life pays on the death of a person it has accepted, with acceptance guaranteed for New Zealanders aged 40 to 75. The key rule is the first 24 months, when only accidental death pays. Momentum's wording defines an accident as an event causing bodily injury through unintentional, violent, external and visible means, and accidental death as death that results directly from it within 90 days. An infectious illness does not fit that definition. The same rule applies to a heart attack, a cancer or a flu. So COVID-19 gets no special treatment, good or bad: it follows the general 24-month rule. Total premiums can exceed the benefit, and the benefit may not cover a whole funeral. The answers below are our reading of the wording, and Momentum decides each claim on its facts.

Does funeral insurance cover a death caused by COVID-19?

On Momentum Life's Funeral Insurance, yes after the first 24 months and no inside them. The wording says that in the first 24 months Momentum pays only if the person dies as the direct result of an accident and the death occurs within 90 days of that accident. After 24 months, it pays if the person dies from any cause (Momentum Life: Funeral Insurance Policy Wording). The wording we read has an issue date of 17 August 2023. A policy includes the wording current when you took out cover, so an older policy may carry an older text.

How does the 24-month rule treat COVID-19?

When the person dies	Cause	What Momentum Funeral Insurance pays
First 24 months	COVID-19 or any other illness	No benefit; all premiums paid for that person since the cover start date are refunded
After 24 months	Illness, including COVID-19	The benefit
Any time after cover starts	An accident, with death within 90 days of it	Three times the benefit

The refund is paid to the account associated with the policy. Increasing the benefit, or adding a person, starts a new 24-month window for that increase or person. Our page on the refund in the first 24 months explains how that works.

Is there a pandemic exclusion?

We found none. We searched both Momentum wordings for the words pandemic, epidemic, outbreak and COVID and found no match in either. The Funeral Insurance wording lists no exclusions beyond the 24-month rule: there is no pre-existing-condition clause and no separate suicide clause. Quick Life's always-excluded list is alcohol and drug effects, war, terrorism and insurrection, criminal activity, and dangerous jobs or pastimes; illness from infection is not on it. Absence from a wording is not a promise about every claim. If an insurer's terms change, or a new policy is issued, check the text. Our funeral insurance exclusions page sets the two wordings side by side.

What if the person dies of COVID-19 in the first two years?

Under Funeral Insurance, there is no benefit and the premiums come back. The family still has to pay for the funeral. FDANZ's 2026 report puts an attended cremation funeral at an average of $11,700 (FDANZ), and the Work and Income Funeral Grant is up to $2,697.43, with income and asset tests, and can be affected by prepaid funeral cover (Work and Income). That gap is why the early window matters when choosing between products.

How does Quick Life treat a death from illness?

Quick Life is Momentum's guaranteed acceptance life cover for ages 18 to 65, with a benefit of $50,000 to $300,000. Its first-2-years rule is different from Funeral Insurance's. For the first 2 years Quick Life covers accidental death and new medical conditions that arise after the policy starts, but not pre-existing conditions or suicide (Momentum Life: Quick Life Insurance Policy Wording). So an illness first caught after the start date can be paid inside the two years. The test is whether the death is directly or indirectly related to something the person had symptoms of, was diagnosed with, or sought advice or treatment for in the 2 years before cover started. Whether a particular infection counts is for Momentum to assess.

What documents are needed for an illness claim?

For Funeral Insurance the wording puts the cost of proof on the claimant, and for a death from illness that is likely to mean a death certificate and a practitioner's form. Momentum says valid claims are usually paid within 24 to 48 hours of approval. Quick Life asks for a death certificate and may ask for a form from the treating practitioner and test results, and says payment is usually made within 48 hours of approval. Claims are on 0800 108 108, Monday to Friday, 9am to 5pm (Momentum Life: Claims). Our how to claim page lists the steps.

Should an existing health concern change which cover to choose?

It can. Funeral Insurance asks no health questions, and the 24-month rule applies to everyone, so it matters most to a person who is already unwell. Quick Life asks no health questions either, but its two-year rule is aimed at pre-existing conditions. Momentum's own Quick Life page says it is not available to applicants diagnosed with a terminal illness or in palliative or hospice care (Momentum Life: Quick Life). Neither product is fully underwritten cover. A licensed adviser can explain whether a medically assessed policy would suit you better. See what guaranteed acceptance means.

What if a claim is declined?

Start with Momentum's complaints process; if it is not resolved you can go to the Insurance & Financial Services Ombudsman Scheme, which is free and whose assessment is binding on Momentum. See our funeral insurance disputes guide.

Where to get advice

The buttons on this page open Momentum Life's online application, one option among several. Momentum Life Limited is rated B (Fair) by A.M. Best; read 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). Plan pages: Momentum Life Funeral Cover, Quick Life and the funeral insurance hub. For how the policy works end to end, see how funeral insurance works.