Life and funeral insurance: Easing your financial burden

It’s only natural to worry about how your family will manage after you pass on. All most of us can hope for is that those we leave behind will live rich lives, full of love and happiness. 

In our most recent Seniors Legacy Report, we found that 66% of Kiwi seniors want to help their loved ones achieve greater financial security through their legacies. We also know that we want to leave our families in good financial stead after we’re gone.

Furthermore, 3 out of 5 Kiwi seniors were concerned about that financial legacy, such as not being able to leave behind as much as they’d like. 

While there are many ways to plan for leaving a financial legacy, it’s also crucial to ensure you don’t leave financial stress behind.

How life insurance can help ease financial stress

Life insurance is one way to potentially ease financial stress after you pass away. 

After all, this is insurance your loved ones can use for whatever they need, if you were to pass away. 

That could be bills, everyday expenses, your funeral, or anything else. Life insurance policies allow you to determine the level of cover you’d like your family to receive, so you can calculate how much you think they’ll need to relieve them of any financial stress, should you pass away.  

Reasons to consider life insurance

Life insurance benefits can be a huge help for families during a challenging time. 

On average, every Kiwi owes more than $150,000 in raw debt. That can include a mortgage, car repayments, student loans, credit card debt, and other forms of money owing. 

If you owe money to any provider, your life insurance payout could help your family to cover those bills after you’re gone. 

Additionally, this insurance can cover any other expenses, whether that’s to help them pay for school or even to take a relaxing holiday as a family to have some time off to grieve. 

However, there can also be risks associated with life insurance. The cost of life insurance premiums, depending on the individual’s employment status, put a strain on their finances. Especially for older individuals with pre-existing health conditions.

Being on top of your payments is a crucial part of having life insurance, as if you miss premium payments, your policy could lapse, leaving you without coverage when you need it most.

Some life insurance policies can also have very complex terms and conditions, and understating these can be challenging. However it can be important to understand these T&Cs as misunderstanding these terms can lead to unexpected issues when making a claim. It’s always best to be up to date with your policy disclosure statement. 

How funeral insurance can reduce the financial burden after a loss

Funeral insurance is a specific type of insurance designed to cover some or all of the costs associated with your funeral. 

Because, while funerals are sombre, emotionally challenging events, they can also be surprisingly expensive. 

Our Cost of Death report found that the average cost of a funeral was $10,206, with the vast majority of New Zealand seniors saying they believe that funeral costs are rising every year. Considering the cost of living has continued to increase, it’s no surprise that the cost of dying might be going up as well.  

That’s why a cash injection can help to cover some or all of these costs, so your family doesn't have to deal with a financial burden on top of an emotional one. 

Reasons to consider funeral insurance

Funeral insurance is one of those things you don’t get for yourself – you get it for your loved ones

It can help if they’re not worrying about whether they can afford to give you the send off you deserve, but rather how they can give you a send off they’re proud of. It can mean they don’t have to take on debt to pay your funeral bills, and that even if funeral costs continue to rise, there can at least be some money to cover the fees. 


Whether you’re looking at life insurance or funeral insurance, both can ease financial burdens for your loved ones after you’re gone. Request a quote today to learn how you can get covered.