Funeral Insurance Cover NZ | New Zealand Seniors (2024)

FAQs

What happens if you can't afford a funeral in NZ? ›

What you can get. We may be able to pay a Funeral Grant of up to $2,559.20 if the estate of the person who has died can't pay. This money can be used for costs such as: professional services for preparing the body for cremation or burial (eg embalming)

As an example, paying an average of $500 for 40 years for a $10,000 benefit works out to cost $20,000 which is twice what the sum insured is for. Anyone over 50 years of age will pay as much as $500 to $1,000 per year for cover per the policy data we gathered.

Potential Disadvantages of Burial Insurance

Limited Coverage: Burial insurance policies typically have lower coverage amounts than traditional life insurance, which may not be sufficient for other financial obligations or to provide ongoing support for your dependents.

You don't necessarily need to worry about what happens to your body if you can't afford a funeral. Signing a form at the county coroner can authorize the release of your body to the state or county for burial or cremation. It may be possible to pay a fee to recover your ashes if your family would like them.

The Burial and Cremation Act 1964 requires that a medical practitioner or nurse practitioner must first certify the cause of death before a body can be buried or cremated. If a health practitioner is unable to certify the cause of death then a coroner must authorise the burial or cremation.

The deceased's estate generally pays for any funeral expenses.In many cases though, there may be insufficient funds and family members will have to contribute financially.

How old can parents be to qualify for cover? The age of the seniors who can be covered with a funeral plan – in this case it would be parents as categorised above - must be less than 85-years-old. So, you can cover your 60-year-old parents, or your 70-year-old parents-in-law or even your 80-year-old adoptive parent.

The average cost of a funeral in New Zealand is approximately $10,000¹, but only 5% of New Zealanders have pre-planned their funerals². So who will be left with the bill? Whether you choose to have a cremation or burial, a simple service or traditional ritual, the associated costs may be more than you expect.

Final expense insurance for seniors can cost less than larger permanent life insurance policies. According to Forbes, an 80-year-old man can purchase $10,000 in final expense coverage for an average of $197 per month. An 80-year-old woman will spend an average of $158 per month on the same coverage.

Is it worth buying burial insurance? ›

Purchasing a burial insurance policy (or a small life insurance policy designed to cover final expenses) can help prevent the passing of any substantial debt to surviving family members. In addition, a more robust whole or term life insurance policy can help you provide financial support to aging parents or siblings.

Burial insurance, also known as funeral or final expense insurance, is a type of whole life insurance policy designed to cover your funeral, burial, and other end-of-life expenses.

The average cost for a burial insurance policy is approximately $50-$100 monthly for roughly $10,000 in coverage. Multiple factors determine the net price, including your exact age, health, tobacco usage (if any), the type of policy, state of residence, and how much coverage you buy.

Martin Lewis funeral plan cons

You choose an instalment plan that ends up costing more than the funeral. You can't keep up with the monthly payments. Funeral costs go down, although he adds this is unlikely to happen in the long term. You choose a cheaper funeral plan that doesn't provide the funeral services you want.

Often, payments from the estate are tax-deductible. Consult with a tax professional to minimize your tax burden. Financial Risks: There's always a possibility that the funeral home might go out of business. Keep in mind that there isn't much regulatory oversight for prepaid funerals.

The average cost of a funeral in New Zealand is approximately $10,000¹, but only 5% of New Zealanders have pre-planned their funerals². So who will be left with the bill? Whether you choose to have a cremation or burial, a simple service or traditional ritual, the associated costs may be more than you expect.

At a time when 40 percent of Americans can't even afford an unexpected expense of just $400, according to the Federal Reserve, the notion of a proper funeral and burial has become, for many people, an unattainable luxury.

Direct cremation is one of the most cost-effective options when it comes to burying your loved one. It also offers more flexible memorial options for families who prefer a more unique, personalized approach.

You can only use a private burial ground (burial on private land) in one of two circ*mstances: the private land was used as a burial ground before 1 April 1965 (when the Burial and Cremation Act 1964 took effect) or. there is no public cemetery available within 32 kilometres of where the person died.