Westpac funeral cover: what a life policy pays towards a funeral
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.
Westpac funeral cover, as a standalone product, is not something we could find. Fidelity Life's Westpac page describes only "Westpac life insurance products", arranged by Westpac New Zealand Limited and underwritten by Fidelity Life Assurance Company Limited. Funeral help comes inside the life policy: Fidelity's LifeProtect wording lets you apply for an immediate advance of $25,000 after a death.
Does Westpac sell standalone funeral insurance?
On the sources we hold, no. Fidelity's Westpac page lists life insurance products and mentions no funeral cover (Fidelity Life: Westpac). Westpac's own website blocked our check on 20 October 2026, so confirm with Westpac before you rely on this. We also found no guaranteed-acceptance funeral policy sold by ANZ, ASB, BNZ or Kiwibank; see funeral insurance compared for the products that do exist.
A standalone funeral policy is a fixed benefit, from $3,000 to $30,000 with Momentum Life, paid on death with acceptance guaranteed and a limit on the early months. A bank life policy is a different product: underwritten, with health questions, and with a much larger sum insured. The two are set side by side in funeral insurance versus life insurance.
Who underwrites Westpac life cover?
Fidelity Life. Fidelity bought Westpac's New Zealand life insurance business, Westpac Life-NZ, with the sale completed on 28 February 2022. The company was renamed Fidelity Insurance Limited, the Reserve Bank approved the transfer in March 2023, and since 30 June 2023 Westpac's life products have been underwritten by Fidelity Life directly, on unchanged terms (Fidelity Life: Westpac). So, according to Fidelity, a policy that still carries Westpac branding is now underwritten by Fidelity Life. Fidelity Life's A.M. Best rating is A- (Excellent), and it reported a solvency ratio of 113% at 30 June 2026 (Fidelity Life: Financial strength). A rating is an opinion, not a recommendation to buy. Our Westpac life insurance guide covers the underwriter and cover in more depth.
What the LifeProtect wording pays towards a funeral
The numbers below come from Fidelity's LifeProtect Life Cover wording, effective from 22 September 2026 (Fidelity Life: LifeProtect Life Cover wording). A policy you already hold follows its own schedule and wording, which may differ.
| Benefit | What the wording says |
|---|---|
| Bereavement Benefit | If the insured person dies, you may apply for an immediate advance payment of $25,000. If the sum insured is $25,000 or less, Fidelity pays it in full. The sum insured is reduced by whatever is paid |
| Death Benefit | The sum insured is paid if the insured person dies |
| Child's Funeral Assistance | Reimburses direct funeral costs if a child aged 2 to 20 dies: up to $15,000 for ages 10 to 20, or $2,000 less any Life Insurance Act 1908 amount for a child under 10. It needs written notice of the death, a three-month wait from the start of the parent's cover, and is not deducted from the sum insured |
The $15,000 figure belongs to the Child's Funeral Assistance benefit, not to an adult's cover. For an adult's death the wording's advance is $25,000. In both cases the benefit is a contribution, not a promise that every funeral bill is met: for scale, FDANZ's 2026 survey of typical prices has a 50-guest funeral averaging $11,700 with cremation and $14,300 with burial (FDANZ, 2026 New Zealand Funeral Industry Trends Report).
How the bereavement advance differs from funeral insurance
- It is an advance, not extra money. The $25,000 comes out of the sum insured, so the later payout is smaller by the same amount.
- It needs a larger policy. It exists only because you hold life cover, bought through health questions and priced on age and health, and premiums may rise with age, so check your schedule.
- It ends with the policy. Cancel the life cover and the advance goes with it. The Child's Funeral Assistance also ends when no cover with Fidelity provides that benefit.
- It must be applied for. The wording says you "may apply", and the normal claim requirements apply. Fidelity's Westpac page lists 0800 738 641 as a contact number.
What to check before cancelling or switching
- Read your own wording. The terms printed in your policy document apply, not the current wording above.
- Keep the old cover running until any replacement is in force; a new insurer will assess your health today, and new waiting periods or exclusions may apply. The FMA gives the same warning (FMA: Insurance). See cancelling or changing life insurance.
- Moving banks. The policy is a contract with Fidelity Life, with Westpac as the arranger. We found nothing sourced on what happens to it if you leave Westpac, so ask both.
- Replacing life cover with funeral cover is a different trade. You would drop a large sum insured for a small fixed benefit, with a fresh early-death window.
Standalone funeral insurance if you want it
Momentum Life's Funeral Insurance, issued by Momentum Life Limited, accepts New Zealanders aged 40 to 75 with no health questions, for $3,000 to $30,000. For the first 24 months it pays only for accidental death, where death follows the accident within 90 days; any other death in that time pays no benefit and all premiums for that person are refunded. After 24 months, death from any cause is paid. Total premiums can end up larger than the benefit, and the benefit may not cover the whole funeral, so saving the money yourself is another route. See how funeral insurance works and the Momentum Life Funeral Cover page. Over 75, Momentum does not accept new applicants.
Momentum Life Limited's A.M. Best financial strength rating is B (Fair), in the "Vulnerable" range of Momentum's own table; see its financial strength page. Compared on this page: Westpac LifeProtect (Fidelity Life) and Momentum Life Funeral Insurance, on funeral-related benefits, as at 20 October 2026, from each insurer's published wording. Not every New Zealand insurer is included; this is one adviser's reading, not a score.
Complaints and advice
For a Fidelity policy, complain to Fidelity first; if unresolved, the Insurance & Financial Services Ombudsman Scheme (IFSO) is free. For a Momentum policy, complain to Momentum first, then IFSO (0800 888 202). 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. General information, not advice. Financial advice is provided by Craig Smith Business Services Limited, trading as Smiths Insurance & KiwiSaver, a licensed Financial Advice Provider (FSP712931). The buttons on this page open Momentum Life's online application; a licensed adviser can compare it with your bank cover. Back to the funeral insurance hub.
Adviser's view
Westpac does not appear to sell a standalone funeral policy; its life cover is arranged by the bank and underwritten by Fidelity Life. The funeral help sits inside the life policy as a $25,000 advance on the sum insured, which is deducted from the final payout. Cancelling that policy ends the advance with it, so check before you switch.
Talk to a licensed adviser about funeral cover · free, no obligation.
Cite this page QuoteHub NZ (2026). Westpac Funeral Cover NZ: Policy and Benefit Checks. www.quotehub.co.nz/funeral-insurance/westpac-funeral-insurance-nz. Updated 2026-10-20.
References
- Fidelity Life: Westpac life insurance
- Fidelity Life: LifeProtect Life Cover wording, effective 22 September 2026 (PDF)
- Fidelity Life: Our financial strength
- FDANZ: 2026 New Zealand Funeral Industry Trends Report (PDF)
- FMA: Insurance
- Momentum Life: Funeral Insurance Policy Wording (PDF, issue date 17 August 2023)
- Momentum Life: Financial Strength
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