Funerals are a part of life – a way to pay tribute to our loved ones with a final, dignified farewell. But funerals in New Zealand can be expensive and sometimes put a financial burden on loved ones at an already difficult time. That’s why there’s funeral insurance. At Just Insurance we help you protect those you care about most.
In this guide, we look at what influences funeral costs and how you can best manage those costs. Knowing what to expect can help you plan ahead and make sure you put the right amount of cover in place for your loved ones.
Funeral Industry in New Zealand
Funeral homes and directors play an important role in helping families across the country bid farewell to their loved ones. In New Zealand they’re regulated under the Burial and Cremation Act, which sets out a standard of care that must be met by all professionals in the industry. However, some of the services provided can come with significant costs.
How much does a funeral actually cost in New Zealand?
According to MoneyHub, funerals in New Zealand in 2023, ranged from $4,000 to $20,000, depending on the type of service, personal preferences, and the location of the funeral.
With Just Funeral Insurance, you can leave a payout of up to $30,0001 to help your family handle these costs and any other end-of-life expenses.
What Influences Funeral Costs in New Zealand?
The cost of a funeral in New Zealand is affected by lots of factors, including:
Location
The cost of funerals can vary significantly between regions, with urban areas generally being more expensive than rural areas.
Type of Service
The choice of a traditional burial, cremation, eco-friendly funeral, or direct cremation can significantly impact costs.
Personal Choices
No two funerals are the same, and these personal touches can make a difference. The type of casket to the choice of venue, and personalisation can all add to the final cost of each service.
Types of Funerals
There are different types of funerals, depending on your beliefs, budget, and preferences. Understanding your options is key to planning the right farewell. Here are a few common ones:
Traditional Funeral
What a “traditional” funeral involves will depend on whose traditions you are honouring. Some traditional funerals involve a formal service often held at a church or funeral home and concludes with a burial. There’s often a gathering after the funeral service, where guests can come together to celebrate the life of the deceased.
While this is a popular choice, it can be more expensive than alternatives such as direct cremations or eco-friendly funerals. The specific cost can vary based on the personal touches, location and your funeral service provider.
Another type of traditional funeral is the traditional Māori tangihanga. This might involve costs including preparing and transporting the tūpāpaku, koha for the marae, catering for manuhiri, burial or cremation fees, and the creation of a headstone or unveiling ceremony.
Cremation
With a cremation, the body of the deceased is reduced to ashes through a high-temperature process. Cremation is generally more cost-effective compared to traditional burials due to the fact there are no burial costs. Burials can include costs for purchasing a burial plot, headstone, and even grave maintenance fees. With a cremation there can also be reduced casket costs – a casket may still be used for a cremation service, but it can be less expensive than those used for traditional burials.
Eco-Friendly Funerals
An eco-friendly funeral, also known as a green or natural funeral, is an environmentally conscious approach to funerals. It’s designed to be more sustainable and reduce the environmental impact of the funeral process. They use biodegradable materials and minimal embalming, which can reduce costs. The exact impact on costs may still vary depending on personal choices and the availability of green funeral options in your area.
Direct Cremation
A direct cremation is a no-frills, cost-effective, funeral option where the deceased is cremated shortly after death, without a traditional funeral service or viewing. As it doesn’t involve a formal service, savings can be made on things like facility rental and ceremonial costs. However, some transportation costs will still be required. Direct cremations can also be cheaper as a basic casket can be used and there is no need for embalming.
The Different Costs Involved in a Funeral Service
In this section, we’ll look at some of the key elements that make up a funeral service in New Zealand. This will help you estimate the costs involved in a funeral and how much cover you might need if you take out funeral insurance.
Funeral Director's Fees
Funeral director fees are a big part of the cost of a funeral. They play a central role in planning and the funeral service. Their fees cover a range of services, including:
- Professional Services: Funeral directors handle paperwork, legal documentation, and logistics – ensuring all aspects of the funeral process run smoothly.
- Embalming and Body Preparation: these are often performed by funeral directors, adding to the overall cost.
- Transportation: Funeral directors oversee the transportation of the deceased, including arranging for hearse services and other transportation needs.
The expertise and support provided by funeral directors can be important for ensuring a respectful and well-organised farewell for a loved one. But these professional services come at a cost. Their fee will depend on the location and the services chosen, but it’s usually a significant factor in the total cost of a funeral.
Caskets
Caskets are a central element of a funeral service. Families can choose caskets that fit their budget and preferences, with options ranging from basic and affordable models to high-end, luxurious caskets.
Several factors contribute to the cost of caskets:
- Material and Design: Caskets come in various materials, such as wood, metal, and more. The type of material and design significantly influences the price, with high-end materials and intricate designs being more expensive.
- Quality and Brand: The quality and brand of the casket can affect the cost. Premium or branded caskets are typically pricier.
- Interior Features: The interior lining and features of the casket, including padding and decorative elements, can add to the overall cost.
Transportation
The choice of transportation services and the logistics involved in moving the deceased and attendees to various locations contribute to the overall cost of a funeral. Families can make decisions based on their preferences, the location of services, and the budget available.
Venue Rental
The choice of venue and the associated costs can significantly impact the overall expense of a funeral, making it an essential consideration when planning end-of-life services. For example, if you opt for a venue other than the funeral home, this can incur additional costs.
Burial vs. Cremation
The choice between burial and cremation can significantly impact costs. A burial is typically more expensive as it involves extra expenses like the purchase of a plot, headstone, and maintenance fees.
This table compares the differences between burials and cremations, including the cost:
| Burials | Cremations | |
| Cost | Typically more expensive due to casket, cemetery plot, and headstone costs. | Generally more cost-effective as it doesn't involve purchasing a burial plot. |
| Timing | Depending on the type of burial, this requires timely arrangements and immediate decisions. | Allows for more time to plan memorial services, making it a more flexible choice. |
| Accessibility | Provides a specific location for loved ones to visit and pay respects. | May not offer a dedicated physical presence for remembrance. |
| Environmental Impact | May require land use and resources for cemeteries, potentially impacting the environment. | Considered more environmentally friendly as it doesn't consume land or resources in the same way. |
Legal and Documentation Costs
Legal and documentation costs after someone dies are often overlooked or forgotten. They’re not as immediately visible as some other expenses. These costs can include fees for death certificates, burial permits, and administrative paperwork.
Unlike the more tangible aspects of a funeral, such as the casket or venue, legal and documentation costs are typically handled behind the scenes by funeral directors or other professionals. When planning, families may focus on the emotional or more visible aspects of the funeral, often underestimating the impact of these other essential expenses.
It's important to think about these costs when funeral planning or taking out funeral insurance, to avoid unexpected financial burdens.
Funeral Assistance Programs
In New Zealand there are several funeral assistance programs designed to help families manage the costs associated with a loved one's death. The type and amount of assistance depends on the individual’s circumstances They include:
- Government funded Work and Income (WINZ) Funeral Grants, which can help with essential funeral expenses.
- Accident Compensation Corporation (ACC) Support which may apply if the deceased died as a result of an accident.
- Veterans’ Affairs Support which can help if the deceased was a war veteran and their death was related to service-related disabilities. Their surviving spouse or children may be eligible for a Surviving Spouse or Partner Pension or Children’s Pension.
If you feel you may be eligible for any of these options, it's a good idea to check the level of support you can get ahead of time. You can find out more information here.
Hidden Costs and Additional Expenses
Funeral expenses can add up, including catering for gatherings, floral arrangements, and memorial services. These costs are often overlooked but should be considered. Proper funeral planning should take these costs into account to ensure a well-managed and affordable farewell for a loved one.
Funeral Costs in Different Regions
Funeral costs in New Zealand can vary by location, with urban areas generally being more expensive than rural areas. Some of the reasons for this are:
- Higher Overhead Costs: Funeral homes in cities and urban areas often face higher operating costs, such as rent, utilities, and staff salaries. These higher costs are often passed on to customers.
- Cemetery Costs: The price of cemetery plots and maintenance fees in urban cemeteries can be significantly higher than in rural locations.
- Venue Rental: Many urban funerals require the rental of event venues, which comes at a premium. In rural areas, venues may be more readily available and less expensive.
- Transportation: Transportation for the deceased and family members can be more costly in urban environments due to traffic and distance.
- Cost of Living: Urban areas generally have a higher cost of living, impacting the overall price of funeral services.
- Consumer Demand: Greater competition and higher demand for funeral services in urban areas can lead to increased prices.
Conclusion
Hopefully this article has given you a good idea of the range of options open to you when planning a funeral. If you’re fully informed, you’ll be more able to give a respectful farewell for your loved ones –without being overwhelmed financially.
At Just Insurance, we understand funeral planning can be a difficult and complicated process. That’s why when it comes to taking out our Just Funeral Insurance, or making a claim, we keep everything as quick, simple and straight-forward as possible. At Just Insurance, we give you one less thing to worry about.