Deciding how much cover you need is simply a matter of deciding how much money you want available to cover your funeral. The average cost of a funeral in New Zealand is $8,000. You can choose a level of cover of AA Life Funeral Cover Insurance from $5,000 to $15,000.
Acceptance is guaranteed if you're aged between 16 and 79 years - there's no need for any medical checks. You do not need a medical, nor do you need to answer any medical questions, and when you reach your 90th birthday, your cover will continue free of charge.
Immediate accident cover
As soon as we receive your fully completed Funeral Cover Insurance acceptance form you're covered immediately for death caused by an accident.
Full cover after two years
After two years you're fully covered. If you die of a natural cause within the first two years of your policy, we'll refund 100% of your Funeral Cover Insurance premium.
48 hour payout
This policy pays out within 48 hours of your claim being accepted - so the money is there when it's needed.
Money is paid tax-free
It's a lump sum payout just like full life insurance. There is no income tax paid on the policy payout so you get all of the amount you are covered for.
Reach of cover
You're covered for funeral insurance anywhere in the world.
You can nominate a joint owner
This can be your partner, spouse or anyone you wish. When you die, the payment will be made directly to them instead of your estate, making the money quickly available.
12% joint application discount
Make a joint Funeral Cover Insurance application with your spouse, partner or anyone you wish and you'll both receive a 12% discount on your premiums.
Fixed premiums and cover
Funeral Cover Insurance premiums and your level of cover will stay fixed for the life of the policy.
30-day no-obligation review
You enjoy a 30-day no-obligation review - if it's not what you expected or you change your mind we'll cancel your Funeral Cover Insurance policy and refund any premiums paid.
Stand down period
Funeral Cover provides accidental death cover from the day your fully completed acceptance form is received. If you die by natural causes in the first two years, you won't receive a payout but all your premiums will be refunded. After two years, full cover is provided for both accidental death and death by natural causes.
What isn't covered
A claim will be refused if the person insured commits suicide within the first 24 months of the policy start date (or within 24 months of the restart date if the policy lapsed for some reason).
Level of cover reductions and premium increases
Your Funeral Cover premium and cover level will never change unless you request it to.
You can cancel your policy at any time by calling us or stating your wish to cancel in writing - there is no surrender value on your policy.
Premiums can be paid monthly (direct debit and credit card only), quarterly, half-yearly or annually by direct debit, credit card or cheque.
How to make a claim
You, or the person looking after your affairs, will need to contact us on 0800 808 175 to inform us of your illness or death so we can start the claim process. For a claim on the terminal illness benefit, we'll need your doctor's contact details, so we can confirm your prognosis. We'll also need proof of age (passport, driver licence or birth certificate), the policy document and the completed claim form.
For a death claim, we'll need the date of death, cause of death and contact details for the administrator of your estate, e.g. solicitor or a family member. We'll contact the administrator of the estate for any further information needed to process the claim, such as:
- the completed claim form
- the death certificate
- proof of age - passport, driver licence or birth certificate
- the policy document
- your will (if you have one) - this will not be required if you have selected a second owner
- any medical information
We may also require Probate or Letters of Administration (legal documents required if you have more than $15,000 worth of cover going to your estate).
Once these documents are received and the claim is accepted, it will be settled immediately. The payout will go to your estate or second owner, the person you've chosen to receive the payment.