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Funeral or Life Insurance?

Funeral insurance gives you guaranteed insurance cover.  You don’t have to answer any health questions or get any blood tests.  Premiums will stay the same for the life of the policy which makes it easy on your budget.  Some companies even offer a discount for both partners or other family members to get funeral cover.

Although life insurance may cost less for the benefits obtained, you will need to go through a formal application process.  If you have pre-existing conditions this may increase the premiums and blood tests and medical examinations may be required.  Maybe you might not be eligible to get normal life cover.  Typically with life insurance premiums will increase yearly to reflect your new age.

Why do You Need Funeral Insurance?

The typical funeral can cost from $5,000 to $15,000 and most people don’t have spare funds available quickly to cover these costs.

Funeral expenses have to be paid, often well before estate settlement and insurance payouts.  Provide the peace of mind of knowing that your funeral expenses are covered in the event of your death.

Minimise the financial and emotional impact of an unexpected death for your family.

Unlike a prepaid funeral plan the funds from your funeral insurance can be used for any funeral services and indeed for anything you wish. Although typically the insurance is set up to cover the funeral costs, the funds could be used to:

• Bring relatives together from around New Zealand or overseas,
• Leave a nest egg for your children or grandchildren,
• Repay any credit card or short term debt you may have left behind.

Who is it For?

Anyone between the ages of 17 to 79 can apply for a funeral insurance with no medical questions asked.  Often you will only be asked for your date of birth, gender and do you smoke cigarettes.

Period of Cover

You are covered immediately for death only by accident for the first two years.  During this period if you were to die of illness or sickness then your premiums are returned.  After two years you have full cover for death by any cause.

Cover commences once the application has been accepted by the insurer and the initial premium has been paid.

The premiums are fixed for life. With some insurers you only pay for the first 10 years or until you are 85 but the cover remains until you die.

Ask us for advice on the best Funeral Insurance for you.

Quick Comparison Guide

Dorchester Funeral Plan 

• Cover from $5,000 to $15,000
• Guaranteed acceptance for anyone between 50 and 79 years old
• Premiums are fixed and will never increase once you take out the policy
• You are covered for accidental death for the first 2 years and any death after that, for death by natural causes in the first 2 years your premium would be refunded

FidelityLife Funeral Fund

• Cover for $12,000
• Entry age 17 to 65 years old
• Premiums are fixed for the first 10 years and then cover continues free of charge until you die.
• You are covered immediately for accidental death, if death in the first year is other than by accident, Fidelity make a full refund of the premiums paid, or one and a half times the premiums paid in year 2, from year three onwards you have full cover

FidelityLife Golden Life

• Cover for up to $50,000
• Entry age 20 to 79 years old
• Premiums are fixed and will never increase once you take out the policy, cover continues as long as you continue paying premiums
• You are covered immediately for accidental death, if death in the first year is other than by accident, Fidelity make a full refund of the premiums paid, or one and a half times the premiums paid in year 2, from year three onwards you have full cover