At Just Insurance, we understand how much your family means to you and why you’d want to help protect your loved ones from the costs of your funeral. Funerals in New Zealand can be an expensive and stressful time for loved ones.
Taking out a funeral insurance policy can be an important part of your end-of-life financial planning and could offer you some reassurance. In this article we take you through how a funeral policy could help you and the different factors that affect how much you’ll pay.
The type of policy can affect your premiums
In New Zealand there are two main types of funeral insurance policy you can choose from – level (fixed) and variable or stepped policies. Which type you choose can significantly influence how much you pay each month or fortnight for your premiums.
A level policy means you pay the same fixed amount for your premium, for the whole life of your policy. It never goes up. This means you’ll always know what you’re paying and it’s easier to budget for. But it can mean your initial payments are higher than they would be for a stepped policy.
With a stepped policy your premiums gradually increase as you get older. They typically start lower but increase with age, potentially becoming more expensive than a fixed premium policy in the future.
At Just Insurance we keep our premiums as affordable as possible. We offer a level premium option only. This means you’ll always know what you’re paying and you can budget more easily. It helps keep life simple and straight-forward. And with Just Funeral Insurance, you can get up to $30,0001 of cover to help towards funeral costs.
Remember, when you’re deciding on a policy that’s right for you, it’s important to think about what you can afford now and in the future.
Optional add-ons can cost you more
Adding extra cover options to your insurance policy can increase the size of your premium. These options offer you more protection and perhaps more peace of mind, but they may also mean paying a higher amount every month or fortnight.
Some funeral insurance policies in New Zealand include Terminal Illness cover automatically. It’s not an optional add on you have to pay more for. With Just Funeral Insurance we strive to offer you excellent value, so we include Terminal Illness cover2 as standard. This means if you're diagnosed with a Terminal Illness, you'll get a 100% early payout,2 which can help cover final wishes and ease financial stress.2 Plus we’re also proud to provide immediate double cover from day one for accidental death.1 Meaning your loved ones will receive double your chosen benefit amount if your death is due to an accident.
What other factors affect the cost of funeral insurance?
The cost of a funeral insurance policy can vary based on several factors, including:
- Cover Amount: If you choose a bigger cash payout amount, your premium will be higher. Just Funeral Insurance allows you to choose a cash payout of up to $30,000.1
- Age at application: Younger people usually pay lower premiums, as they are considered lower risk for the insurer. If you’re a New Zealand Resident aged 50 to 80, you’re guaranteed to be accepted for cover at Just Funeral Insurance.
- Gender: In some cases, gender can influence premium costs. Women normally pay lower premiums when compared to a man of the same age.
- Smoker Status: Smokers tend to pay higher premiums due to increased health risks. If you’re a non-smoker, you’ll enjoy lower premiums3 as a Just Funeral Insurance customer.
Understanding how these factors affect how much you pay for your funeral insurance, is important when you’re choosing the right policy for you. You need to think about your needs but also your budget.
How much cover should I take out?
When deciding the size of the payout you’d like to leave your loved ones, it’s important to think about a few key things. Start by estimating the cost of your funeral, taking into account options such as whether you want burial or cremation, the type of service and all the other extras. Also work out if your estate might be liable for any debts after you die.
And remember prices go up over time due to inflation. So the cover you choose today might not fully cover future costs. You need to factor this in too.
Also, think about your savings and any other assets you have that could help with costs after you’ve gone. But bear in mind, these assets might take some time to be realised after you’re gone, and they may not get the best market value if they’re cashed in hastily or without careful consideration.
Finally, make sure you choose a premium that you can comfortably afford - not just now but in the future too. Finding the right balance between enough cover and affordability is key to easing the financial burden on your loved ones.
How can I reduce the size of my premiums?
You could lower the cost of your funeral insurance by:
- Choosing a Lower Cover Amount: Consider opting for a smaller payout amount. But check the costs of funerals first so you can feel confident you’re leaving enough to help ease the financial burden on loved ones.
- Apply at a Younger Age: Typically, the earlier you start a funeral insurance policy, the cheaper the premiums will be.
- Review and Adjust the Coverage: Regularly look at your cover needs and adjust your policy accordingly to avoid overpaying. The key is finding affordable cover whilst ensuring you have enough to cover funeral costs.
Why choose Just Funeral Insurance?
At Just Funeral Insurance, we understand your family are your number one priority. So we offer insurance policies that are designed to help them the best way possible after you die. You can trust we’ll be there for them. The reassurance you could enjoy with a Just Funeral Insurance policy means you can get on with making the most of today.
Our easy application process means you can get cover over the phone, in just a matter of minutes. There’s no medicals or blood tests required. And if you’re a New Zealand Resident aged 50 to 80, we guarantee to accept you.