Funeral deposits, upfront payments and instalment plans
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.
Most funeral directors in New Zealand will give you a written estimate, and FDANZ says directors "may ask for an upfront deposit which helps them cover these external costs". Whether a director will accept the balance in instalments varies, and we found no published industry rule, so ask and get any arrangement in writing. You can also pay in advance by instalments before a death, through a funeral trust. As at 20 October 2026.
A funeral account has two parts: the director's own fees, and costs that are external to the director but usually paid by them and passed on to you. FDANZ gives "associated council costs such as burial and cremation plots and interments" as its example, and says a deposit helps the director cover these external costs (FDANZ: financial matters). Funeral directors are not regulated by a central body, and only members of the Funeral Directors Association are bound by its Code to be transparent about costs (FDANZ 2026 report). Whoever you use, ask for an itemised written estimate, ask what is due and when, and compare like with like. This page is general information, not financial advice.
What a deposit usually covers
FDANZ's indicative component ranges (as at July 2025, "vary per funeral director") show the type of outlay:
Item
Indicative range
Professional services fee
$3,000 to $6,500
Cremation fee (council or crematorium)
$600 to $1,100
Burial, plot plus interment (council)
$1,000 to $8,000
Doctor's fee and medical referee (cremation only)
$100 to $400 and $100 to $120
Celebrant or clergy
$300 to $900
Flowers, newspaper notices
$200 to $500; $150 to $500 or more
Source: FDANZ: financial matters, read 20 October 2026. FDANZ's page does not say which items a deposit covers or how large it is, so we cannot say what any particular director collects first. Ask your director which items are paid to third parties and what the deposit would be for your plan.
For scale, FDANZ's 2025 survey averaged $11,700 for a full funeral with cremation and $4,700 for an unattended cremation, so the deposit and the total vary a lot with the choice you make (FDANZ). Our funeral costs hub has council fees and director price lists.
Can you pay in instalments?
Here we have to be plain about the limits of the evidence. FDANZ's financial page, which we read on 20 October 2026, mentions deposits and itemised estimates but not payment plans, finance or when payment is due. We found no source saying directors in general accept instalments, and none saying they refuse. What we did find is that some directors partner with a finance company, and one Auckland example is described on our funeral loans page, with the questions to ask. That is a loan from a third party, not the director holding the account open, so it is a different question from a payment plan.
If you want an instalment arrangement, ask the director directly:
How much is the deposit, and what is it for?
Is the rest due before the service, on the day, or after?
Will you accept instalments, and is there any fee or interest?
If a grant or bank release is pending, will you hold the account until it arrives?
Can I have all of this in writing?
Ways to cover the cost without a plan
The deceased's bank account. The bank can release money for the funeral without waiting for probate, and you do not need to be the executor (govt.nz). A director who knows a release is coming may be willing to wait for it, which is worth asking.
The Work and Income Funeral Grant. Up to $2,697.43, with an itemised account, and a receipt and bank details if you have already paid. Work and Income may pay and then recover the money later if it cannot confirm income or assets. See funeral grant. Work and Income says there is "no time limit on when a Funeral Grant application must be made" (payment rules).
ACC. Up to $8,236.40 if the death followed a covered injury, paid to the director or reimbursed (ACC).
The estate. Funeral expenses rank second among an insolvent estate's debts; see debts after death.
Paying in advance, by instalments
Before a death, the instalment route is a funeral trust. The Funeral Trust (run for FDANZ) says the minimum is $200, payments can be $20 a fortnight by automatic payment or $500 per non-automated instalment (as read on 20 October 2026), there is a 21-day cancellation period, any leftover goes to the estate, and only the first $10,000 is excluded from residential care asset testing (The Funeral Trust FAQ). FDANZ's Now For Them says it is "not a savings or investment product, and no interest or return is paid" (FDANZ). The two pages differ on interest, so check current terms. A prepaid account counts as an asset for the Funeral Grant. Our preplanning guide compares the options. In 2025, 74% of deaths had no pre-arrangement or pre-payment (FDANZ 2026 report).
Funeral insurance is not a payment plan
Funeral insurance pays a fixed benefit on death for premiums you pay while you are alive; it does not spread an existing bill. If you are thinking ahead for yourself, Momentum Life's Funeral Insurance (issued by Momentum Life Limited) accepts New Zealanders aged 40 to 75 without health questions and pays $3,000 to $30,000 towards costs. During the first 24 months there is a payout only for accidental death, and premiums come back for any other cause. Premiums can total more than the benefit, and the benefit may not cover the whole funeral. A.M. Best rates Momentum B (Fair) (financial strength). See what funeral insurance is and funeral insurance cost. The buttons on this page lead to Momentum's quote.
Adviser's view
FDANZ says funeral directors may ask for an upfront deposit to cover costs paid to others, such as council burial and cremation charges. We found no published industry-wide instalment policy, so whether a director will spread payments is something to ask and get in writing. Money from the deceased's bank account, a grant or a prepaid plan can reduce what you need to find, and paying ahead in instalments is possible before a death through a funeral trust.
Henry Smith, Financial Adviser (FSP1010699). General information, not personalised financial advice.