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What should I consider when deciding on funeral expenses insurance?

August 23, 2018



None of us know how long we will live exactly but regardless, we don’t want to leave others with the responsibility of paying for us to go.  Several insurers offer Funeral Insurance, so how do you consider what amount you want buy?


According to the thorough and very helpful information provided by the Citizens Advice Bureau, the average funeral costs around $8,000 to  $10,000, but this can vary widely.


There are other items that you may want to factor in, such as:

  • The legal cost for finalising your affairs. This will vary depending on who you use.  If you have a lawyer or trust company prepare your Will, ask them for an indication but allowing for at least $2,000 would be a sensible starting point.

  • Repaying any loans or sundry debts, e.g. credit card debt, medical costs, etc. Student loans are usually written-off, so that’s a bonus.

  • Any ongoing costs such as, grieving partner’s time away from work, childcare and/or future education, etc.

  • Donations to specific charities.

  • Now deduct the amounts of your bank accounts, KiwiSaver Account, credit card insurance, and all other tangible assets that can be cashed-up easily, e.g. motor vehicle, jewellery, collectable items, etc.


Now, do you have a current Will and what does this involve if you don’t?


If you own (your Estate) more than $15,000, there are legal issues you must know.  So, it’s very important that you have a Will and it doesn’t have to be complicated.  A few legal firms advertise this as a free service!


If what you own is under $15,000 there should be less legal issues and costs.  There is no right or wrong way to figure out how much you should have, other than to get what you can afford – after all, something is better than nothing!


Finally, be sure you understand what you are buying.  Usually, the sum insured is not payable for the first 2 or 3 years.  And a recent article HERE also warned about high pressure sales tactics, so care is required. 

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