Waiting periods and immediate funeral cover claims
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 waiting period for accidental death: it pays three times the benefit from the first day if the person dies within 90 days of an accident. For any other death in the first 24 months it pays no benefit and refunds all premiums for that person. After 24 months it pays for death from any cause.
A waiting period, in funeral insurance, is an early stretch after cover starts during which the insurer pays less than the full benefit, or nothing. The usual reason for it is that acceptance is guaranteed with no health questions, so someone who is already seriously ill can buy cover. Momentum's wording does not use the phrase "waiting period". It describes a "first 24 months" in which the benefit is paid only for accidental death. That is why the label can mislead: cover for accidents is immediate, and cover for illness is delayed. Those are two different rules, and the policy applies them to the same person at the same time. The period runs from the Cover Start Date, which is normally the Acceptance Date, the day your application is accepted.
The timeline, from the wording
| Period | Accidental death (within 90 days of the accident) | Death from any other cause |
|---|---|---|
| Day 1 to month 24 | Pays 3 times the benefit | No benefit; all premiums paid for that person are refunded |
| After month 24 | Pays 3 times the benefit | Pays the benefit |
Source: Momentum Life: Funeral Insurance Policy Wording, 17 August 2023, product features table and "When will we pay a Benefit?". The benefit is $3,000 to $30,000, so the accidental death payment is $9,000 to $90,000. The three-times payment is not limited to the first 24 months.
An "Accident" in the wording is an event causing bodily injury that is directly and solely caused by unintentional, accidental, violent, external and visible means, with no other contributing cause, where the injury is not self-inflicted. "Accidental Death" is a death that is a direct result of an Accident and happens within 90 days of it. A death from an illness, such as a heart attack, is not an accident under that definition.
Three examples
These are illustrations of how the rules apply, not claims on real policies.
- Death from illness in month 10. The policy pays no benefit. Premiums paid for that person since the Cover Start Date are refunded to the account associated with the policy.
- Accidental death in month 10. If the person dies within 90 days of the accident, the policy pays three times the benefit.
- Injury in month 10, death 120 days later. The death is not within 90 days of the accident, so it is not an Accidental Death. It is a death in the first 24 months from another cause: no benefit, premiums refunded.
If an accident happens at month 22 and the person dies in month 25, the death is after the 24 months, so it is paid as a death from any cause. If the death is within 90 days of the accident, the three-times accidental amount applies.
What happens to claims in the first 24 months?
Momentum refunds premiums but pays no funeral money. For a family the effect is that the funeral must be paid some other way. The refund is a return of what was paid, not a payment towards costs. The wording says it will pay refunds "to the account associated with the Policy". Claims go to Momentum; our how to claim page covers the steps.
The clock restarts in one case. An increase in the benefit, or adding another person to the policy, is subject to a fresh 24-month accidental-death-only limitation for that increase or person. Reinstatement is a separate question: if Momentum cancels a policy for unpaid premiums, you can apply to reinstate it, but reinstatement is not guaranteed and the wording we read does not say whether a reinstated policy starts the 24 months again. If you cancel and change your mind later, the wording says you will need to reapply for cover. Missing a premium for more than one month lets Momentum cancel.
Are there funeral policies with no waiting period at all?
Among the guaranteed-acceptance products we read, none. The early period differs in length and in what happens to your premiums, as at 20 October 2026, from each insurer's own pages and wordings (retrieved 17 to 20 October 2026):
| Product | Accident-only period | Premiums on another death in the period |
|---|---|---|
| Momentum Life Funeral Insurance | 24 months | All refunded |
| NZ Seniors and OneChoice (Pinnacle Life) | 12 months | OneChoice says no refund after the cooling-off period |
| AA Life Funeral Cover (Asteron Life) | 24 months; accident pays double | 100% refunded |
| Chubb Life Funeral Cover | 24 months | 100% refunded |
| Greenwich Life, The Funeral Plan (Autosure) | Two years | 100% refunded |
| Unity | Applies; length not stated | Not stated |
Sources: NZ Seniors, OneChoice, AA Life, Chubb, Greenwich Life, Unity. Not every insurer is included. A shorter period is not automatically better. NZ Seniors and OneChoice pay no refund, and their entry age band, rating and other terms differ. See how funeral insurance works for the whole policy lifecycle.
Other ways to have money available sooner exist, with trade-offs. Some life cover policies pay part of the sum insured early for funeral costs once a claim is accepted. Kiwibank's life cover includes a Funeral Expenses lump sum of $15,000, and Southern Cross Life's Bereavement Support Benefit pays up to $25,000 of life cover early (Kiwibank; Southern Cross Life). These sit inside life cover that asks health questions and has its own conditions, so they are not substitutes for guaranteed acceptance. Momentum's Quick Life is different again: it is guaranteed-acceptance life cover for ages 18 to 65 from $50,000 to $300,000, and for the first two years pre-existing conditions and suicide are excluded, though accidental death and new conditions are covered. See Momentum Life Quick Life.
What to check before you buy
- Which deaths the early period covers. Accident only, within 90 days of the accident.
- What happens to your premiums. Refunded in full, or not.
- When it restarts. Increases and added people start their own period.
- Whether you can wait. If you or the insured person has a serious illness now, a death from it in the first 24 months pays nothing.
- The total cost. The wording says the policy is not a savings or investment plan, that total premiums "could exceed the Benefit we pay to you", and that the benefit "may not cover the cost of a Life Insured's funeral". See funeral insurance quotes and whether funeral insurance is worth it.
- The 30-day free look. Momentum gives 30 days from the Acceptance Date to cancel with a full refund if no claim has been made.
If a death from illness in the first two years would leave your family short, savings or other cover are the realistic answer, since no guaranteed-acceptance product we read removes the gap. The explainer what is funeral insurance gives the basics.
Where to get advice
The buttons on this page open Momentum Life's online application, one option among those on this page. Momentum Life Limited has a financial strength rating of B (Fair) from A.M. Best, affirmed 11 February 2026; B sits in A.M. Best's "vulnerable" range on Momentum's own table, and the rating is not a recommendation (Momentum's 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. Complaints about a Momentum policy go to Momentum first, then the Insurance & Financial Services Ombudsman (IFSO). Advice is provided by Craig Smith Business Services Limited, trading as Smiths Insurance & KiwiSaver, a licensed Financial Advice Provider (FSP712931). Back to the funeral insurance hub or Momentum Funeral Cover.
Adviser's view
Every guaranteed-acceptance funeral policy we read has an early period, so we found no product with no waiting period at all. Momentum's is 24 months: accident only, with all premiums refunded for any other death. That refund softens the rule but does not pay for the funeral. If a death from illness in the first two years would be a real problem, plan for that gap with savings or another product.
Talk to a licensed adviser about funeral cover · free, no obligation.
Cite this page QuoteHub NZ (2026). Funeral Insurance Waiting Periods NZ Explained. www.quotehub.co.nz/funeral-insurance/funeral-insurance-waiting-periods-nz. Updated 2026-10-20.
References
- Momentum Life: Funeral Insurance Policy Wording (PDF, issue date 17 August 2023)
- Momentum Life: Quick Life Insurance Policy Wording (PDF, November 2025)
- Momentum Life: Financial Strength
- NZ Seniors: Funeral insurance
- OneChoice: Funeral insurance
- AA Life: Funeral cover
- Chubb: Funeral cover
- Greenwich Life: The Funeral Plan
- Unity: Funeral insurance
- Kiwibank: Life insurance
- Southern Cross Life
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