Resolving a funeral insurance complaint or dispute

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.

If a funeral insurance claim is declined, delayed or disputed in New Zealand, start by complaining to the insurer in writing. If that does not resolve it, you can take the matter to the insurer's approved dispute resolution scheme, which is free to you. For Momentum Life that scheme is the Insurance & Financial Services Ombudsman Scheme (IFSO).

Every business offering retail financial services in New Zealand must belong to an approved dispute resolution scheme. There are four: the Banking Ombudsman Scheme, IFSO, Financial Services Complaints (FSCL) and the Financial Dispute Resolution Service, operated by FairWay Resolution (FMA: Disputes and consumer protection). The FMA says to raise the matter with the provider directly or through its complaint or feedback process, and the schemes are the independent route if that does not work. A scheme can give a free, independent view of a fair outcome. This page is for a person who may be dealing with a loss and a decision they disagree with, so it is practical rather than persuasive. It describes how the process works and what Momentum Life and IFSO have published. It is not legal advice, and the schemes' rules can change.

What are the steps?

Step	What to do	Who	Time limits published
1	Get the decision in writing and the policy documents together	You	None
2	Complain to the insurer, in writing	Insurer's customer care and complaints teams	Momentum acknowledges within 2 business days
3	Ask for a formal internal review if you are not satisfied	Insurer's internal dispute resolution	Momentum aims for a formal response within 2 months
4	Take a deadlock letter to the scheme	IFSO (free)	Up to 3 months from the letter
5	If the complaint is about conduct that may affect others, tell the FMA	FMA	None; it cannot obtain individual remedies

Step 1: What should you have ready?

Keep the decision letter, the policy wording and policy schedule, the claim form and everything you sent. The funeral wording says the claimant must supply sufficient proof of the claim, at their own expense (Momentum Life: Funeral Insurance Policy Wording). Write down dates of calls and who you spoke to. If the reason for the decision is the 24-month rule or a lapse for unpaid premiums, our pages on exclusions and lapse rules explain how those work.

Step 2: How do you use the insurer's complaints process?

Momentum Life takes complaints on 0800 108 108 and at [email protected], or by post to Momentum Life, PO Box 90136, Victoria St West, Auckland 1142 (Momentum Life: Complaints). Its Quick Life wording describes the stages: the customer care team acknowledges the complaint within 2 business days; a complaints manager aims to reply within 10 business days; an internal dispute resolution team then does an independent review and aims to give a formal response within 2 months (Momentum Life: Quick Life Insurance Policy Wording). The Funeral Insurance wording is shorter: it points to the contact details and says that if the complaint remains unresolved you have the right to go to IFSO. For other insurers, check the policy document for their steps and their scheme. The funeral policy wordings we read name IFSO as the scheme, but your own policy document is the place to confirm which scheme your insurer belongs to. Our page on Momentum's complaints has the contact details in one place.

Step 3 and 4: When can you go to IFSO?

IFSO is free for consumers. Its FAQs say the provider has up to 2 months to resolve a complaint; if it cannot, it issues a letter of deadlock and you usually have 3 months to refer the matter to IFSO. IFSO says about 90% of the disputes it investigates are finished in under 90 days (IFSO: Frequently asked questions). Contact is 0800 888 202, [email protected], PO Box 10-845, Wellington 6143 (IFSO). Momentum's wording says IFSO's independent assessment of your complaint is binding on Momentum Life. IFSO's own FAQs say an assessment binds both sides only if you accept it, so you are not forced to take an outcome you disagree with. IFSO's published limit for disputes with a deadlock date on or after 18 July 2024 is $500,000 plus GST, well above any funeral benefit ($3,000 to $30,000, or up to $90,000 for an accidental death on Momentum's Funeral Insurance). Check the current limit on IFSO's site.

What do funeral insurance disputes tend to be about?

IFSO has said publicly that cover is not a savings product. Its case study of a 2010 funeral policy with a $20,000 sum insured and premiums to age 90 found the policy gave no warning that premiums could exceed the sum; the insurer refunded all premiums (IFSO: Funeral insurance case study). In December 2025 IFSO said insurers should warn that you may pay more than you get back, in the policy, on the website and in advertising, and that without it IFSO is likely to uphold a complaint (IFSO release). That is one case, not a rule for every policy. Other recurring themes in the sources we read are the early-death window (on Momentum's Funeral Insurance, no benefit for non-accidental death in the first 24 months, with premiums refunded), cancellation for unpaid premiums, and information given when applying. Momentum's Funeral Insurance wording also makes the policy owner responsible for giving true, correct and complete information, and sets out what Momentum may do if it is not.

Is there an FSCL step?

FSCL is one of the four approved schemes, and your insurer's documents show which one it belongs to. We could not read FSCL's site on 20 October 2026, so we give no FSCL time limits or caps. If your insurer belongs to FSCL, use the process in your policy documents or on the Financial Service Providers Register entry for the insurer. Do not assume IFSO can take a complaint about an insurer that belongs to a different scheme.

What about misleading sales or suspected fraud?

The FMA says it cannot obtain remedies for individuals, but if you are concerned about an ongoing issue that may affect others you can file a complaint with it, and it can investigate and take action against providers that breach their obligations (FMA). It also lists a separate page for reporting scams. Use the scheme for your own money and the FMA for conduct that may affect others. If you believe a crime has been committed, that is a matter for the Police. For advice on your legal rights in your own case, speak to a lawyer; we have not assessed how consumer-protection law applies to any particular policy.

What about QuoteHub and Smiths?

If your complaint is about QuoteHub or the advice from Smiths Insurance & KiwiSaver, see our disclosure page for how to complain and which scheme applies. QuoteHub is a Momentum Life partner and Smiths 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). For how long a claim should take, see the payout timeline. Back to the funeral insurance hub.

If you are planning ahead for your own funeral costs

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.

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

Want more than $300k or have questions? Talk to an adviser

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.

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.

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.

Adviser's view

Start with the insurer's own complaints process, in writing, and keep every letter. If it does not resolve the matter, the insurer's approved dispute resolution scheme, which for Momentum Life is IFSO, can look at it for free. The FMA takes concerns about misleading conduct but cannot get a remedy for you. None of this is legal advice.

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 Insurance Disputes NZ: Complaint Steps. www.quotehub.co.nz/funeral-insurance/funeral-insurance-disputes-nz. Updated 2026-10-20.

References

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