Funeral Cover

Take out cover for yourself, a family member, or both


Funeral Cover

Funeral Cover is a simple insurance policy with guaranteed underwriting acceptance. You can choose up to $30,000 of cover which can be used to pay for your funeral expenses or other associated costs, putting your mind at ease.

After two years of cover, there's an early payout available for terminal illness to help you get your affairs in order. It's quick and easy to apply, where you can take out cover for yourself, someone else, or both.

Anyone aged 50 to 79 can apply online, at an AA Centre or over the phone with our New Zealand based team. Just bear in mind that you'll need to be a New Zealand citizen, resident or hold a valid work visa for the next 12 months.

Interested in knowing what a typical New Zealand funeral costs? Find out what's covered and how much Funeral Insurance you might need.

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A quick summary

  • Anyone aged 50 - 79 can apply
  • Cover up to $30,000
  • Simple application process, no medical checks
  • Covered immediately for accidental death, with cover for non-accidental death and terminal illness after 24 months
  • Death and terminal illness benefit included, with double payout for accidental death
  • Premiums are payable until your 90th birthday. Then cover continues free of charge after this time
  • Tax-free, lump sum payout
  • Cover anywhere in the world

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Be confident knowing what your policy covers

Funeral insurance can help with funeral expenses and other associated costs.  We want to make sure you’re confident in knowing what you are or aren’t covered for. That means reading your policy wording to understand the benefits as well as your responsibilities, and the cover limits and exclusions of your policy.

Funeral Cover Benefits

  • Accidental Death Benefit

    If your death is the result of an accident (and death occurs within 90 days of the accident) we'll pay double your cover amount.

  • Terminal illness

    If you're diagnosed with a terminal illness for the first time and your policy has been in force for 24 months, we'll pay out early to help you make arrangements for yourself and your loved ones before you go.
  • Death from natural causes

    If you die of natural causes in the first 24 months of cover, we'll refund all premiums paid. If this happens after 24 months, you'll receive your full cover amount.

  • Premium holiday

    Depending on your situation, you could be eligible for a premium holiday of up to six months, which gives some flexibility for future financial changes in life.

Here's a guide to help you understand the Funeral Cover policy benefits

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Things you should know

  • There's a 30 day no-obligation period gives you further peace of mind in knowing that if you change your mind in this time, we'll refund 100% of the premiums you've paid.
  • Premiums can be paid fortnightly, monthly (direct debit and credit card only), quarterly, half-yearly or annually by direct debit or credit card.
  • You should also consider that Funeral Cover isn't an investment policy, which means that if you cancel your policy, you won't receive any benefit or premium refund.
  • If you die of natural causes or suicide in the first 24 months, all premiums paid will be refunded.
  • Your full cover amount will be payable if you pass away from natural causes and your policy has been in force for two years or more.
  • 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.
  • You can nominate a beneficiary which allows your cover payout to be made to someone you choose, bypassing your estate and making the money available more quickly.

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More from AA Life Insurance

Life Cover pays out a tax-free lump sum if you die or are diagnosed with a terminal illness, where $15,000 can be paid early to help with funeral costs.

Accidental Death Insurance covers you for death as a direct result of an accident, though not for death as a result of health issues.

Cancer Care Insurance gives you a lump sum of money to help you with financial stress that accompanies the diagnosis of certain types of cancer needing treatment.


You can take out a Funeral Cover policy for yourself or for another person, such as your parents, spouse, or friends.

You will never be singled out for a premium increase because of your age or health changes, but we do have the right to increase premiums across all Funeral Cover policies issued under the same offer made to you.

If you cancel within the 30 day no-obligation review period, we'll refund any premiums you have paid. If you cancel after this, you won't receive a refund, unless you've paid annually in advance, in which case we'll refund you for any future period already paid for.

Customers tell us that sometimes financial hardship means they have to think about cancelling their policy.

For this reason we offer a Premium Holiday Benefit to those suffering financial hardship. If you can't reasonably afford your premiums, you can apply to us, and we may be able to put them on hold for a maximum of six months so you don't have to cancel the policy while you get back on your feet. You do NOT need to pay us back. You must be under 65 years of age, and have had the policy in place for 2 years to qualify for this benefit. But please note, you can only have one Premium Holiday across the life of your Funeral Cover insurance policy.

A Joint Owner is the person who owns the policy with you. If you choose to have a Joint Owner, they will have joint ownership rights to the policy. This means they will need to consent to any changes to your policy after purchase such as change of address, wanting to increase or decrease the policy value or requesting a premium holiday.

The total maximum combined cover we will pay under all Funeral Cover policies is $30,000 for each person insured, which is in addition to any payments made under the Additional Accidental Death Benefit.

Our insurance partner

AA Life Insurance policies are brought to you by the New Zealand Automobile Association Incorporated and underwritten by Asteron Life Limited.

Financial strength rating

Asteron Life Limited has been given an A+ financial strength rating by Standard & Poor’s.

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 registered financial adviser.