Frequently asked questions about funeral insurance

Written by · 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.

The highest benefit you can choose on Momentum Life's Funeral Insurance is $30,000, and accidental death pays three times the benefit. No funeral insurance product we reviewed is unlimited: the highest published maximum is $30,000. Total premiums can exceed the benefit, and the benefit may not cover a whole funeral.

Funeral insurance is a fixed benefit paid when the person insured dies, to a person you name. Momentum Life's Funeral Insurance is issued by Momentum Life Limited for New Zealanders aged 40 to 75, with benefits of $3,000 to $30,000, no medicals, health questions or paperwork, and level premiums to the 89th birthday. The early months matter: in the first 24 months it pays only for accidental death, and any other death returns all premiums for that person. The answers below come from Momentum's policy wording (Funeral Insurance Policy Wording, issue date 17 August 2023) and from other insurers' own pages, retrieved 17 to 20 October 2026. Other policies differ, so read the wording of any policy you consider.

What is the maximum funeral insurance benefit in NZ?

For Momentum Life it is $30,000, and that is a cap across all of its funeral policies on one life. If someone holds more than one Momentum funeral policy, the total benefit cannot exceed $30,000; any excess is cut from the most recent policy and the extra premiums are refunded. Accidental death pays three times the benefit, so up to $90,000, if death occurs within 90 days of the accident. Other insurers publish similar ceilings: NZ Seniors and OneChoice $3,000 to $30,000, AA Life $5,000 to $30,000, Chubb Life up to $30,000, Greenwich Life $5,000 to $20,000 on its website, and Unity up to $15,000 depending on cover type. See maximum funeral cover.

Is there unlimited funeral insurance?

Not among the products we reviewed. The word "unlimited" in a search usually means the cover lasts for life, or premiums stop but cover continues. On Momentum's Funeral Insurance premiums end at the 89th birthday and cover continues for life, but the benefit is still capped. If you want more than $30,000 for family needs beyond a funeral, that is a job for life cover. Momentum's Quick Life offers $50,000 to $300,000 for ages 18 to 65, with its own two-year restriction, and a licensed adviser can discuss medically assessed cover.

Can you get funeral insurance with no health questions?

Yes. Momentum's Funeral Insurance accepts New Zealanders aged 40 to 75 with no medicals, health questions or paperwork. Acceptance is guaranteed, but that does not mean every death is paid: for the first 24 months only accidental death pays, and the policy has no pre-existing-condition clause. A New Zealander in the wording lives in New Zealand at application and is a New Zealand or Australian citizen, a permanent resident visa holder, or has been in New Zealand continuously for at least 12 months on a valid temporary work visa. See what funeral insurance is.

What happens if you stop paying premiums?

Momentum can cancel the policy if a premium is unpaid for more than one month. It will tell you in writing first. You can apply to reinstate it, but reinstatement is not guaranteed and outstanding premiums must be paid. You can also cancel any time with 30 days' notice, and cancelling outside the 30-day free look from the acceptance date refunds nothing. Our lapse rules page has more.

Can you have more than one funeral policy?

With Momentum, yes, up to the $30,000 total cap per life insured. A family policy can cover up to four people, each of whom must be a partner or relative of the owner, with $150 a year off for each additional life. Other insurers set their own caps, such as AA Life's $30,000 per person across its policies. Read can you have multiple funeral policies.

How much does it cost, and can the price change?

It depends on your age, the amount and the insurer. Only AA Life publishes a price, from $14.28 a week for $10,000 for a 66-year-old female AA Member non-smoker (AA Life). Momentum's policy wording gives none. QuoteHub does not publish an exact premium for any insurer. On Momentum's Funeral Insurance the rate is fixed each year until the 89th birthday, but it can change for everyone on the same offer for a change in tax or other law, or if claims experience is significantly different from expected, with at least 30 days' written notice and effect from the next policy anniversary. The cost guide shows how to total a quote against the benefit.

How do you make a claim?

Contact Momentum on 0800 108 108 (Monday to Friday, 9am to 5pm) or [email protected], and ask for the Funeral Benefit claim form (Momentum Life: Claims). The claimant must supply sufficient proof of the claim at their own expense, which may include a death certificate and a practitioner's form. Valid claims are usually paid within 24 to 48 hours of approval, to the policy owner or the beneficiary named. The beneficiary must be a person, not a company, so a funeral director cannot be paid directly. See how to claim funeral insurance.

Does funeral insurance cover a death overseas?

Momentum's Funeral Insurance covers a New Zealander worldwide, if they were a New Zealander when cover was issued, but the benefit does not arrange repatriation. See funeral insurance and death overseas.

Where can you compare funeral cover?

Our funeral insurance comparison page compares seven providers on entry age, benefit, early window and rating without ranking them, and funeral insurance quotes explains how to get a quote. Compare the full wording, not only the summary.

Is funeral insurance the only way to pay?

No. Savings, a prepaid plan and the Work and Income Funeral Grant of up to $2,697.43 are other routes. The grant has income and asset tests and can be affected by prepaid funeral cover (Work and Income: Funeral Grant).

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 also the Momentum Life Funeral Cover page and the funeral insurance hub.

Adviser's view

Most funeral insurance questions come down to four points: the benefit is capped at $30,000 or less on every product we reviewed, acceptance can be guaranteed but the early months pay only for accidents, premiums can add up to more than the benefit, and the benefit may not meet a whole funeral. Check those four on any policy before you buy.
, Financial Adviser (FSP1010699). General information, not personalised financial advice.

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Cite this page QuoteHub NZ (2026). Funeral Insurance FAQs NZ: Common Questions. www.quotehub.co.nz/funeral-insurance/funeral-insurance-faqs-nz. Updated 2026-10-20.

References

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