Funeral insurance exclusions and restrictions

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.

Momentum Life's Funeral Insurance has no pre-existing-condition clause and no list of excluded causes of death, but for the first 24 months it pays only for accidental death; any other death returns the premiums. Quick Life excludes pre-existing conditions and suicide for the first two years and always excludes some activities, including alcohol and drug effects, war, terrorism and crime.

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.

An exclusion is a cause or circumstance for which an insurer will not pay, and a restriction is a limit on when it pays. Momentum Life's two guaranteed acceptance products carry restrictions of different shapes. Funeral Insurance is a fixed benefit of $3,000 to $30,000 for New Zealanders aged 40 to 75, with no health questions. Quick Life is life cover of $50,000 to $300,000 for ages 18 to 65, also with no health questions. Both have a first-two-years rule, but one is about the type of death and the other about the health history. Neither wording promises that every claim will be paid, and the cover is not fully underwritten. For Funeral Insurance, total premiums can exceed the benefit and the benefit may not cover a whole funeral. The table below uses the policy wordings, not marketing pages, and Momentum assesses each claim on its facts.

How do the two Momentum wordings compare?

	Funeral Insurance	Quick Life
First window	24 months: accidental death only (death within 90 days of the accident)	2 years: accidental death and new medical conditions covered
Death from illness in the window	No benefit; all premiums for that person refunded	Covered if it is a new condition; not covered if related to a pre-existing condition
Pre-existing conditions	No pre-existing-condition clause	Excluded for the first 2 years; premiums refunded if death in the first 24 months is from a pre-existing condition and no claim is payable
Suicide and self-harm	No separate clause; in the first 24 months a death that is not accidental pays no benefit, and after that any cause is covered	Excluded for the first 2 years, "whether or not the person is mentally well"
Always excluded	None listed	Alcohol or drug effects (unless prescribed and taken as instructed), war, insurrection and terrorism, criminal activity, dangerous job or pastime
After the window	Any cause	Includes pre-existing conditions, except some conditions that can be permanently excluded in the policy schedule
Restarts the window	An increase or an added person (for that increase or person)	Reinstatement, cancel-and-rejoin, and increases (increase portion only, unless automatic)

Sources: Funeral Insurance Policy Wording, issue date 17 August 2023, and Quick Life Insurance Policy Wording, November 2025.

Does Momentum Funeral have a pre-existing condition exclusion?

No. The Funeral Insurance wording has no pre-existing-condition clause, and it asks no health questions. That does not mean every death is paid at once. The first 24 months pay only if the person dies as the direct result of an accident and the death occurs within 90 days. For a person with a serious illness that is a large restriction, and the premiums are refunded, not the benefit paid. Our page on the first 24 months refund explains this, and waiting periods compares it with other insurers.

What counts as an accident?

The wording defines an accident as an event resulting in bodily injury, where the injury is directly and solely caused by unintentional, accidental, violent, external and visible means without any other contributing causes, and the injury is not self-inflicted. A death from an illness, including a sudden illness such as a heart attack, is not an accident. Because the definition says "without any other contributing causes", a death where illness contributed may not qualify, and Momentum decides that on the facts. Accidental death pays three times the benefit and is not limited to the first 24 months, but it must occur within 90 days of the accident. See accidental death funeral insurance.

What are Quick Life's exclusions?

For the first 2 years, Momentum will not pay if the death or terminal illness is directly or indirectly related to suicide or intentional self-harm, or to a pre-existing medical condition. The wording defines that as an illness, condition or symptoms in the 2 years before the policy started, including anything the person had treatment or advice for, noticed symptoms of even if undiagnosed, or would reasonably have been aware of. It also names very high blood pressure, cholesterol over 7.0, a BMI over 40 and complications related to diabetes. At any time, it will not pay for death caused by the effects of alcohol or drugs (unless a prescribed drug was taken as instructed by a registered New Zealand doctor), war or war-like activity, insurrection or terrorism, criminal activity, or a dangerous job or risky pastime. The wording lists examples: handling explosives or weapons, working 40 m underwater, driving or riding faster than 130km/h outside commercial flights, professional sport, and active armed-forces duty. Occupation and pastimes are not asked at application, so they matter at claim time.

What else can stop a claim being paid?

These are not exclusions of a cause, but they affect payment.

Unpaid premiums. Momentum will not pay a claim unless all premiums due have been paid and the policy was not cancelled. It can cancel after a month of unpaid premiums; see lapse rules.
The $30,000 cap. The benefit cannot exceed $30,000 across all Momentum funeral policies on one life, and any excess is cut from the newest policy with its premiums refunded.
Information given. The wording says information must be true, correct and complete. If it is incomplete or misleading, Momentum may decline a claim, cancel the policy or reduce the benefit; if the failure is fraudulent, it may refuse a claim and treat the policy as never having existed.
Who can be paid. The beneficiary must be a natural person. Momentum cannot pay a company, charity or other organisation, so a funeral director cannot be named.
No terminal illness benefit. Funeral Insurance has none; Quick Life pays if the illness is expected to lead to death within 12 months.

How do other funeral insurers' early windows differ?

The shape differs across insurers, so do not assume Momentum's rules apply elsewhere. From the insurers' own pages, retrieved 17 to 20 October 2026: NZ Seniors and OneChoice have a 12-month accident-only window, and OneChoice says you cannot get a refund of premiums after the cooling-off period; AA Life, Chubb Life and Greenwich Life have 24-month windows with 100% of premiums refunded for another cause of death; Unity applies a window but does not state its length. NZ Seniors' policy documents also contain a suicide exclusion. Our funeral insurance comparison page compares them on entry age, limits and ratings.

What if a claim is declined because of an exclusion?

Ask for the reason in writing, check it against the wording and your policy schedule, and use the insurer's complaints process. If it is not resolved, the Insurance & Financial Services Ombudsman Scheme can look at it free of charge; our funeral insurance disputes page sets out the steps.

How can you check a policy before you buy?

Read the full policy wording, not only the summary page.
Find the early window: its length, what it pays and whether premiums are refunded.
Check for a pre-existing condition or suicide clause.
Check when premiums stop and whether they can change.
Ask a licensed adviser if anything is unclear.

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). See the plan pages for Funeral Cover and Quick Life, and how funeral insurance works. What guaranteed acceptance means is covered in our explainer. Back to the funeral insurance hub.