How funeral insurance works

Funeral insurance pays a lump-sum benefit to your estate or your nominated beneficiaries when you pass away. At the time of applying for cover, you can choose a benefit amount of up to $30,000 which can go towards paying for your funeral costs or any other expenses that you leave behind like debts. This can help your family get through a tough time on short notice and also help you avoid the worry of rising funeral costs.

Depending on the policy, you could also be covered for a terminal illness or accidental serious injury. Keep in mind that you need to pay a fortnightly, monthly, or annual premium to be covered. The cost is usually based on your age and the benefit amount you choose. The higher your benefit amount, the higher your premiums will be. 

It’s also important to remember that funeral insurance isn’t a savings plan or a trust. This means that the money you pay isn’t refundable unless you cancel during the cooling-off period (except if you’ve made a claim in that time). But the upside of funeral insurance is that you can be covered for your chosen benefit amount.

How does funeral insurance work?

  1. You apply forfuneral insurance

    • Choose the cover amount that works for you
    • Get a quote
  2. Insurancecompany

    • Assesses application and approves cover
    • Issues funeral insurance policy
    • Covers the life insured under the terms of the policy
  3. Insuranceevent

    • Claim is submitted by the claimant
    • Claim is assessed by insurer
    • Lump-sum payout made to the beneficiary or estate (to you for a terminal illness or accidental serious injury claim if applicable) within 1-2 business days of receiving required paperwork  

What's up with OneChoice Funeral Insurance?

Simply put, it’s funeral insurance designed for Kiwis (that’s you — not the bird!). We’ve tried our best to make it the most irresistible funeral cover on the market, and here’s how it turned out:

Eligibility and cover amount

If you’re a New Zealand resident between 18 and 79 years old, we won’t say “no” when you apply. We think ‘guaranteed acceptance’ has a nice ring to it so you never need to worry about us saying we can’t cover you.

Plus, there’s no age limit on your benefit amount. Anyone eligible for cover can take out from $3,000 up to $30,000 to help pay for the perfect funeral or tangi — not a bad way to celebrate the performance of a lifetime.

Keep in mind that cover is for accidental serious injury and accidental death only in the first 12 months.


Most claims are paid within one business day of receiving the required completed paperwork, so your family won’t need to break open the savings jar when you pass away. This means they can pay for whatever might come up on short notice — whether it’s the perfect funeral or tangi, legal fees, any debts that you may leave behind, or anything else they see fit. 

Additional benefits once you turn 85

  • You’ll get an extra 25% Bonus Cover added to your benefit amount
  • We’ll stop charging you premiums, so you can enjoy the rest of your policy on us! 
  • Or, through our Early Cash Out Option, you can choose to cancel your policy (you won’t be able to make a claim) and you’ll get 75% of your benefit amount paid to you — no hard feelings

Other cool stuff we decided to throw in

  • You’ll get 100% of your benefit amount paid to you in case you’re diagnosed with a terminal illness with only 12 months to live, after the first 12 months of holding your policy
  • If you suffer an accidental death or accidental serious injury, we’ll triple your benefit amount up to $90,000
  • We’ve made your premiums level, so they won’t go up every year1 — you’re welcome


All good things must come to an end. But don’t sweat — we’ll give you a nice parting gift when your policy expires at age 100. When you reach this milestone age, we’ll end your policy and pay you 125% of your benefit amount. You can leave it in your funeral savings jar or use it to throw the best 100th birthday party of the century — you call the shots. 

Payment options 

You can pay your premiums annually, fortnightly or monthly using either a credit card, direct debit, credit union, or building society account.

Choosing your beneficiaries

Your beneficiaries are the people who’ll receive the money when a claim is made on your policy. You can choose up to five different beneficiaries over the phone or using our nomination form. Choose your life partner, kids, a close mate, or anyone else you trust.

If you’re still on the fence, check out the Policy Document for OneChoice Funeral Insurance.  

Frequently Asked Questions

Get a cool info pack

We can send you a free info pack with even more information on OneChoice. You’ll love it.

Why not?

What you get with OneChoice Funeral Insurance:

Your cover, your way

Don’t settle for cover that doesn’t fit right. With OneChoice Funeral Insurance, you can choose a level of cover that works just for you, from $3,000 up to $30,000.

Guaranteed acceptance for New Zealand residents aged 18 – 79

Just ask. We won’t say no. There are no medicals or blood tests needed either.

Fast payout to your family

We pay most claims within 1 business day after receiving the required paperwork. When it’s time for a funeral or tangi, your loved ones can focus on honouring your memory — not paying for it.

Happy 85ᵗʰ birthday

You’re only 85 once, so for reaching the big milestone, we’ll add 25% Bonus Cover to your policy at no additional cost.

No more premiums after age 85

Keep the celebration going, as you’ll no longer have to pay to stay covered (hip-hip, hooray!).

Cover for terminal illnesses

Be ready for life’s curveballs with your benefit amount paid in full if you’re diagnosed with 12 months or less to live (cover is for accidental serious injury and accidental death only in the first 12 months).

Level premiums with no annual increase

There’s no guesswork with OneChoice. Your premiums won’t go up every year1 so you know exactly how much you need to pay. You can’t get a refund on premiums after the cooling-off period – sorry.

Triple benefit for accidental death

If life catches you by surprise, your loved ones will receive a triple payout of up $90,000. It’s our way of helping you expect the unexpected.

Early Cash Out Option

If you’d rather go your own way, you can end your policy any time after you turn 85 and get 75% of your benefit amount paid to you — no hard feelings. Keep in mind that this payout won’t include Bonus Cover, and you’ll no longer be able to claim as this option will cancel your policy.

Guaranteed cash payout for an even happier 100ᵗʰ birthday

At age 100, we’ll end your cover and give you 125% of your benefit amount to spend any way you like. Not a bad way to celebrate the last century.

Triple benefit for accidental serious injury

You’re covered until the age of 75 if you suffer an accidental serious injury and we’ll triple your benefit amount (up to $90,000). Use it for medical bills, recovery costs, or to turn life’s lemons into lemonade. 

See more benefits
  1. The total amount of premiums payable over the life of the policy has the potential to exceed the cover amount.

Make the call

If you’re keen for a chat, get in touch! Request a quote now, or if you’re too busy enjoying life we can call you back instead.