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Funeral Cover

Ensure loved ones don’t face financial burden from funeral expenses during an already difficult time of grief. 

From $14.28/week

Based on $10,000 cover for a 66-year-old female AA Member who is a non-smoker. 

Premiums can be paid fortnightly, monthly, quarterly, half-yearly or annually.

Get a quote
  • Cover from $5,000 up to $30,000
  • Guaranteed acceptance with no medical questions
  • 5% AA Member discount*
  • 20% Joint Funeral Cover discount1

*Provide a valid AA Membership number at time of purchase. Discount applies to the total premium.

1If you apply for Funeral Cover with a family member or friend within 48 hours of each other.

A grandfather, son, and grandson photo at the beach

Who might this be for? 

  • You want to remove the financial stress of funeral costs from your family 
  • You want to purchase a policy for your parents, partner or someone else to help cover their funeral expenses 

How to apply

  1. Choose your cover amount
  2. Get an online quote in around 2 minutes
  3. When you're ready, apply, with no medical exam needed for application

What's included?

Your chosen cover amount is paid as a tax-free lump sum. This can be used for funeral expenses, service costs, or to support family with travel or arrangements. 

Premiums are payable until the policy anniversary after your 90th birthday. After that, your cover continues at no extra cost. 

You can nominate beneficiaries so your payout can go directly to the people you choose, bypassing your estate and making the money available more quickly.

You can purchase Funeral Cover for family members or friends to help with funeral costs when their time comes.

If you apply for Funeral Cover with a family member or friend within 48 hours of each other, you both receive 20% discount.

If your death results from an accident, and happens within 90 days of the accident, double your cover amount will be paid. 

If you’re under 65, have had your policy for at least two years and become unemployed, bankrupt or face financial hardship (as set out in the policy), you may be able to apply for a premium holiday for up to six months. You can only have a total of six months premium holiday across the life of your Funeral Cover policy. 

 

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PLUS, free access to Connected Care

As an AA Life Insurance policyholder, you receive complimentary access to AA Life Insurance Connected Care– a virtual health and wellbeing service. It connects you and eligible family members with New Zealand GPs, global medical specialists, mental-health professionals and more. Whether you need a quick GP consultation, a second opinion, or wellbeing guidance, AA Life Insurance Connected Care is another way we help you focus on life’s precious moments.

Things you should know

  • Over your lifetime, it's possible to pay more in premiums than your total cover amount. You should consider whether Funeral Cover is the best option for your situation, with other possible options being saving or investing.
  • The person covered needs to be aged 50–79 at the time the policy is taken out and in New Zealand when you apply. Cover starts as soon as you receive confirmation of acceptance for accidental death. Cover for non-accidental death & terminal illness as defined in the policy starts after 24 months.
  • If the person covered passes away from natural causes within the first 24 months, all premiums paid will be refunded. 
  • You can apply online, at an AA Centre, or over the phone with our friendly New Zealand based team.    
  • There's a 30 day no-obligation period - if you change your mind during this time, 100% of the premiums you've paid will be refunded, provided you have not made any claims. 

 Understanding what your policy covers

Please read the policy wording so you understand what is and isn’t covered, the benefits, your responsibilities as the policy owner cover limits and exclusions.

Have a question?

Please check out our frequently asked questions, give one of our friendly New Zealand-based team a call on 0800 AA LIFE Monday to Friday 8.30am - 5pm, or pop into one of our AA Centres to speak to a consultant.

Funeral insurance is designed to help cover funeral costs when the person insured dies.

It pays a set amount to help with expenses like funeral services, burial or cremation, and related costs. The money can be used however the family or policy owner chooses.

Funeral insurance pays a lump sum when the person insured dies. Once a claim is accepted, the payment is made to help cover funeral costs.

Some people choose funeral insurance so there’s a dedicated amount set aside for funeral expenses, rather than relying on savings or family members to cover the cost at the time.

It's important to note that over your lifetime, it's possible to pay more in premiums than your total cover amount. You should consider whether Funeral Cover is the best option for your situation, with other possible options being saving or investing.

The cost of funeral insurance varies depending on things like the cover amount and the person insured’s age.

The easiest way to see the cost is to get a quick quote online. You’ll be able to see the price before deciding whether to go ahead.

You can take out Funeral Cover for yourself or for another person, such as your parents, spouse, or friends as long as they meet the eligibility criteria.

People choose funeral insurance for different reasons. This cover provides a dedicated amount so there’s money set aside specifically for funeral related costs.

If the person insured dies or is diagnosed with a terminal illness (as defined in the policy), contact us as soon as you can. We’ll explain the next steps and what information is needed and help guide you through the process. Please note, cover is for accidental death from day one, with full cover for natural causes after two years. If a claim for natural causes is within two years we will refund the premiums paid.

AA Life Insurance Funeral Cover is specifically designed to help cover the costs associated with a funeral. You can get up to $30,000 cover.

AA Life Insurance Life Cover provides a lump sum of up to $1.5 million if the person insured dies or is diagnosed with a terminal illness. It includes an early payment of up to $15,000 (or your full sum insured if you have less than $15,000 of cover) funeral support. 

If you’re suffering financial hardship, involuntary unemployment or bankruptcy (as set out in the policy) and can't reasonably afford your premiums, you can apply to us for the Premium Holiday Benefit. If accepted, your premiums are put on hold for a maximum of six months from the time you tell us in writing, so you don't have to cancel the policy while you get back on your feet. You'll still be covered while you're on the premium holiday and you don't need to pay us back. To be eligible for this benefit, you must be under 65 years of age, have had the policy in place for 2 years and have paid all premiums. You can only have one Premium Holiday across the life of your Funeral Cover insurance policy.

You can add a beneficiary as part of the application process for Funeral Cover, or if you'd like to add one later, you can do so by completing the Nominated Beneficiary Form online or by getting in contact with us. The beneficiary’s details are loaded against your policy so that any payouts are made to them directly.

Why choose AA Life Insurance

 We help New Zealanders take care of what matters, on the road, and in life.

roundel 5% AA Member discount
roundel 99.4% of claims paid out
roundel phone and laptop icon simple online application
roundel with headset icon and New Zealand based support caption

*Provide a valid AA Membership number at time of purchase. Discount applies to the total premium. 

^AA Life Insurance claim acceptance ratio Jan-Dec 2024 for Life, Cancer Care, Funeral, and Accidental Death Cover.   

PZ AA Life

Our insurance partner 

AA Life Insurance policies are distributed by the New Zealand Automobile Association (Incorporated) (AA) and provided and underwritten by Asteron Life Limited. You should consider the appropriate policy wording before making any decisions about any policy you decide to purchase. Terms and Conditions, Limits and Exclusions apply

Financial strength rating 

Asteron Life Limited has been given an  "A+" (Strong) financial strength rating by Fitch Australia Pty Ltd (Fitch), an approved ratings agency.  The scale that this rating forms part of is available for viewing at Asteron Life Limited's New Zealand offices.

Financial advice 

Our website provides general information about our products and services to help you make choices when it comes to protecting the things in life that really matter. The information doesn’t take into account your specific financial situation, needs or goals and is not intended to be financial advice. 

If you'd like to receive financial advice, you can get professional advice from a financial adviser.

More information

Policy wording

Terms and conditions

Connected Care

Blog

Complaints process 

1If you apply for Funeral Cover with a family member or friend within 48 hours of each other.

*Provide a valid AA Membership number at time of purchase. Discount applies to the total premium. 

The information on this page refers to the currently on sale product.