Does State offer funeral insurance in New Zealand?

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.

State does not offer a standalone funeral insurance product that we could find. State Insurance describes itself as a business division of IAG New Zealand Limited, and its website, read on 20 October 2026, listed car, home and contents, landlord, business and travel insurance. Funeral money has to come from another source: life cover, funeral insurance, savings or a grant.

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

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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.

State Insurance funeral cover is a search that usually has no matching product, because funeral insurance is a type of life insurance and State sells general insurance. General insurance pays for loss or damage to property, such as a car, a house or its contents. Funeral insurance pays a fixed sum when the insured person dies. The two are different kinds of product, even where the brand is familiar. If you want funeral cover, you need a provider that sells it, and you should check the early-death limits and the lifetime cost before you apply. This page also covers what the word "State" can mean in a funeral search, and where funeral money can come from.

What State lists

State's home page navigation groups its cover as car and vehicle (comprehensive, third party fire and theft, third party, electric vehicle, under 25 drivers, motorcycle), home and contents (home, contents, renters, home construction), landlord, business, and travel (State Insurance). Nothing in that list pays a sum on death. We cannot say what State may offer in future. This is a dated check: if State adds a product, its own site will show it first.

IAG New Zealand describes itself as the largest general insurer in the country, trading under the AMI, State, NZI, Lumley and Lantern brands (IAG New Zealand). We ran the same check for AMI; see AMI funeral insurance. For State and life cover more broadly, see does State offer life insurance.

What "State" can mean in a funeral search

State Insurance, the general insurer above. It lists no funeral product.
Help from the state. Many people mean government help with funeral costs. The Work and Income Funeral Grant is up to $2,697.43, with tests (Work and Income), and ACC pays up to $8,236.40 when the death results from a covered injury (ACC). See our guides to the funeral grant and to the ACC funeral grant.
A state funeral. That is a separate topic and not an insurance product; our guide to state funerals covers it.

Where funeral money can come from

If you hold State home or contents insurance, none of it will pay towards a funeral. These are the routes that can. Figures are from the named sources, retrieved 17 to 20 October 2026.

Route	What it is	Limits to know
Savings	Money set aside in an account you control. Consumer NZ says to consider this rather than funeral insurance	Needs time to build, and there is no cover if you die early
Prepaid funeral plan	Pay a funeral director or trust ahead. Now For Them and Public Trust both exclude the first $10,000 from the residential care asset test	Prepaid funeral cover can affect the Work and Income grant; see prepaid funerals
Funeral insurance	A fixed benefit, with guaranteed acceptance at Momentum Life, NZ Seniors, OneChoice, AA Life and Chubb Life	Early-death limits, and total premiums can exceed the benefit
Life cover with a funeral payment	Kiwibank's life cover, provided by nib, includes a $15,000 funeral expenses lump sum; Southern Cross Life pays up to $25,000 early; Pinnacle Life pays $15,000 on policies issued after November 2024	You are accepted on health questions, and some payments are brought forward from the main sum
Work and Income Funeral Grant	Up to $2,697.43	Tests apply (assets, and income in partner and child cases); other help can affect it
The estate	A bank can release money from the deceased's account to pay for the funeral (govt.nz)	Depends on what the person left

QuoteHub is not recommending any one of these routes for you. FDANZ's 2026 report puts an average funeral for 50 guests at $11,700 for a cremation and $14,300 for a burial (FDANZ), so compare any benefit with those figures.

How guaranteed-acceptance funeral cover differs

Compared: Momentum Life Funeral Insurance, NZ Seniors and OneChoice, AA Life and Chubb Life funeral cover, on entry age and the first restricted period, as at 20 October 2026, from each insurer's own pages and documents. Not every New Zealand insurer is included. This is a reading of documents, not a score.

Momentum Life: ages 40 to 75, $3,000 to $30,000. For the first 24 months only accidental death pays; any other death refunds all premiums for that person.
NZ Seniors and OneChoice: ages 18 to 79. For the first 12 months only accidental death pays, with no premium refund.
AA Life: ages 50 to 79, $5,000 to $30,000, with 24 months and a refund of premiums for natural death in that time.
Chubb Life: ages 50 to 80, up to $30,000, 24 months and a refund of premiums.

Momentum Life Limited's financial strength rating is B (Fair) from A.M. Best, affirmed on 11 February 2026, and Momentum's own table places B in its "Vulnerable" range (Momentum: financial strength). Momentum does not accept new applicants over 75. On all of these, the benefit may not cover the whole funeral. See what funeral insurance is, the Momentum Funeral Cover page, and why price comparisons are hard in cheapest funeral insurance.

A short decision path

Do you want funeral money, or income and debt cover? A funeral benefit of up to $30,000 is not an income or mortgage solution. Life cover through a licensed adviser fits those needs.
Could savings or the estate cover it? If yes, insurance is optional. Test the total: multiply a quoted premium by the years you expect to pay and compare it with the benefit.
Are you likely to be declined or loaded on health? Then guaranteed acceptance is worth a look, knowing the early-death limits above.
What is your age? The entry bands differ by years, and Momentum's Funeral Insurance does not start before 40 or after 75.

What we could not verify

Whether State has any arrangement with a life insurer. We found none on its site.
What State may sell in future.
Any funeral premium. Only AA Life publishes a price, for one stated profile, and QuoteHub publishes no exact premium for any insurer.

Where to get advice

The buttons on this page open Momentum Life's online application, one option among those above. General information, not advice. 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. A licensed adviser can compare these routes on your own details. For a complaint about a Momentum policy, go to Momentum first and then the Insurance & Financial Services Ombudsman (0800 888 202). 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.