Funeral Insurance in New Zealand
The death of a family member is one of life's most devastating occurrences. During this challenging time, the last thing one wants to think about is the cost of a funeral. That is why it is worthwhile for individuals to have funeral insurance in place. A funeral insurance policy helps to ease the burden on family members and loved ones - providing the peace of mind that a dignified burial will be possible - and gives your family one less thing to worry about during this time.
It is interesting to note that according to New Zealand law, funds to cover funeral costs can be withdrawn from an estate prior to probate. However, there can still be unnecessary anxiety for those left behind about paying for a funeral. Many funeral directors offer a very worthwhile discount for prompt payment. In order not to miss out on the discount, the account must be paid before the deadline - which would almost always be before date of probate of the deceased's estate.
Funeral insurance cover is relatively inexpensive, and thus it is affordable for people to take out funeral insurance for themselves and a number of family members. Some people choose funeral insurance that covers them, their spouse and their children. Certain policies automatically cover the member's spouse and children, provided that the children are under the age of 21, or aged between 21 and 25 years and are full-time students. Funeral insurance in New Zealand is generally unconditionally available to all New Zealand citizens or permanent residents within the 55 - 85 age range. However, some funeral insurance companies may have certain conditions. Funeral insurance policies cover both natural and accidental death. Once the insurer has been notified of the death, family members are generally paid out within 48 - 72 hours.
There are a variety of funeral insurance cover options available, each of which pays out a different cash benefit upon death of the insured. This generally amounts to between $ 5000.00 and $ 25 000.00. The amount of funeral cover paid out will depend upon the specific level of cover of the policy.
Because you have the flexibility to choose the level of cover you want, as well as the amount of benefit you would like your family to receive, you are able to choose a premium that matches your budget. While funeral insurance is an affordable type of insurance, it's never wise to over-extend yourself.
NZCU South’s Credicare Bereavement Fund is a special service that ensures when a Credicare member dies, money is immediately available to the family. Below are some more benefits.
- Cash is immediately available to the family when a member dies
- Payment is made regardless of any claims such as insurance
- It is a tax free benefit
- No commission or administration fees.
One of the NZCU South team will be able to advise you on the right level of cover or click here for more information on our Credicare Bereavement Fund.