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Use our Funeral Cover calculator to find out how much cover you may need.

AA Life Funeral Cover

Funeral Cover is a guaranteed acceptance policy for everyone aged from 50 to 79 and there are no medical questions. We'll provide up to $30,000 cover when your family needs it most. It's quick and easy to apply - take out cover for yourself, a family member, or both.


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Why choose Funeral Cover with AA Life

Most Trusted Life Insurance Brand

5% off new policies for AA Members


20% discount when you join with a friend or family member

Why it matters

It’s always hard when a loved one dies, but your family knowing they don’t have to face unexpected debts or costs can really help them cope at that time.

Funeral Cover is a simple, guaranteed acceptance insurance policy that can be used to pay for your funeral expenses and other associated costs, putting your mind at ease. Also included is an early payout for terminal illness and an additional accidental death benefit.

The illustration below can help you understand if Funeral Cover would benefit you in your circumstances.

Life CoverFuneral Cover

*Two year stand down period for death by natural causes applies to Funeral Cover

Thankfully most of us don’t have to deal with funerals very often. Because of this, we don’t always realise how many decisions there are to make or costs to cover, from coffins to catering.

Creating a plan now will help give your family assurance that they are making the right decisions for you, and will help you understand how much cover you may need to buy.

We’ve put together an easy guide to help you make those decisions and share them with someone you trust.

Try our funeral planner >

It takes about 3 minutes

Funeral Cover truth #1

Funeral cover provides budget certainty
because premiums do not rise with age

What's included

 Flexible cover

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 more than $8,000*. Select a cover level from $5,000 to $30,000 in $1,000 increments.

 Money is paid tax-free

Funeral Cover provides a lump sum payout just like full life insurance. There is no income tax payable on the policy payout so you get the full amount you’re covered for.

 Early payout for terminal illness

After two years of continuous cover, if you’re diagnosed with a terminal illness and have less than 12 months to live you could receive your full payout early.

 Premium holiday benefit

If you’re aged under 65, are suffering financial hardship, and have had two years of continuous cover, you may be eligible for a premium holiday for up to 6 months.

 Guaranteed acceptance

Acceptance is guaranteed if you're aged from 50 to 79 years – that means that there are no medical questions to answer and you won’t need a medical check. Once you’ve got the policy, changes to your health won’t affect your cover. When you reach your 90th birthday, your cover will continue free of charge, from the next policy anniversary date.

 How it works

Funeral Cover is an insurance policy and not a savings plan. Like other types of insurance this means depending on how long you have your policy, the premiums paid may exceed the Cover Amount payable.

 48 hour payout

This policy usually pays out within 48 hours of your claim being accepted - so the money is there when it's needed.

 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.

 20% joint application discount

Make a joint Funeral Cover Insurance application with your spouse or partner and when you take the policy out you'll both receive a 20% discount on your premiums.

 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.

 Full cover after two years

If you die of a natural cause within the first two years of your policy, we'll refund 100% of any premiums paid. After two years of continuous cover you're fully covered.

 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.

 Reach of cover

So long as you’re a NZ citizen or permanent resident you're covered for funeral insurance anywhere in the world.

 Additional accidental death benefit

If your death is a result of an accident, you’ll receive an additional accidental death benefit

 Changes to your health won't affect your cover level and premiums

What's not covered

Please see the Funeral Cover policy document for a full list of exclusions, but these are the main areas not covered:

  • Any death other than accidental during first 24 months of cover
  • Suicide or a deliberate act by causing injury to yourself, whether you are sane or insane, unless the injury is indirect and unintended, during the first 24 months of cover

Paying premiums

Premiums can be paid fortnightly, monthly (direct debit and credit card only), quarterly, half-yearly or annually by direct debit, credit card or cheque.


In summary

Who it covers Ages 50-79, guaranteed acceptance.
Application process No medical questions.
Cover begins Immediately for accidental death. After 2 years you're fully covered.
Cover type Covers your funeral and related costs, including early payout for terminal illness and additional accidental death benefit.
Term After your 90th birthday, cover continues free of charge
Pay-out amount Between $5,000 and $30,000*
*If you die in an accident we'll pay out an additional benefit. This can be up to double your cover amount.

It takes about 3 minutes


  • What is funeral cover?

  • How do I know it's right for me?

  • What exactly will be covered?

  • What is a Joint Owner?

  • What is a premium holiday?

  • Can I talk to someone at AA Life?

  • What happens if I cancel?

  • Is it better to save or invest for my funeral?

  • Will my premiums go up?

  • Can I buy cover for someone else?

  • Who can I take out Funeral Cover for?

Making a claim

We’re here to make sure your policy pays out as quickly as possible, and that the process is easy to follow.

If you need to make a claim on your policy, or a policy on which you are the representative or Joint Owner, please call us now on 0800 808 175.

Making a death claim

To make a death claim, your representative will need to provide the date of death, cause of death, and contact details for the administrator of your estate (if you haven’t specified a Joint Owner).

If you specified a Joint Owner on your policy, payment will be made directly to them. We’ll contact them to get the rest of the information needed to process the claim, which includes:

  • a death certificate
  • a copy of your will (if one exists) and other legal documents
  • medical records (if requested)
  • a completed claim form

Making a terminal illness claim

If you have been diagnosed with a terminal illness at least two years after taking out your policy and have less than 12 months to live, please provide us with the following:

  • a completed claim form by the claiment and treating specialist

Once these documents have been received and your claim has been accepted, the money will be paid out immediately.

Do it online

Have a question or need life insurance guidance?

Call us at 0800 808 234

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