The Funeral Plan
Your funeral is the last thing your family should have to worry about at such a difficult time. And they aren't cheap - they average around $8,000-10,000, but it isn't difficult to spend a lot more.
How it works
The Funeral Plan is a straight forward policy that pays out on your death, regardless of how much premium you've paid. The lump sum is usually paid within 48 hours of the claim forms and other documentation being received.
Guaranteed acceptance
Anyone aged 30 to 70 can get The Funeral Plan. Acceptance is guaranteed regardless of your medical history and any medical conditions you already have will be covered after the initial two year period. Once your policy is in place there is no age limit either. Provided your premiums are up to date you can keep the policy as long as you want, so you'll know that the cover will be there when it's needed.
Never pay more than you're covered for
Many NZ funeral insurance policies continue to charge premiums until you are 85, 90 or until you die. So unless you die within a few years of getting the policy, it is very likely you’ll end up paying more in premiums than will be paid when you pass away.
With The Funeral Plan you'll never pay more in premiums than you get back in cover.
Your premiums stop as soon as the total paid equals the amount of your funeral benefit and cover then continues, free of charge, until you pass away and the benefit is paid out. Guaranteed.
Guaranteed premiums
You choose the amount of cover you want, from $5,000 to $20,000 (or any amount in between). The premium you pay is set at the time you buy and is then guaranteed not to increase as you get older, even if your health deteriorates. So you'll always know how much to budget for and the policy won't suddenly become too expensive to maintain.
Benefit payout or 100% refund
Because your acceptance is guaranteed, cover is provided in two stages. For the first two years the full funeral benefit amount is paid out only in the event of accidental death, or 100% of all premiums paid for your policy will be refunded if you die from any other cause during this time. After two years you are covered for death by any cause, with no exclusions and no exceptions.
Premium payments
Premiums can be paid weekly, fortnightly or monthly by direct debit from your bank account. To buy online you must be the account holder and not require joint signatures to authorise payment.
Free look period
You'll be sent a policy document within a few days. If you then decide the cover isn't exactly what you want, you can cancel the policy within the first 30 days and any premiums paid will be refunded in full.
What isn’t covered
During the first two years the only events not covered are death by the events shown below.
In both cases however the policy will still pay out the full refund of premiums paid.
After two years you are covered for death by any cause, no exceptions.
Illness or disease
Suicide or attempted suicide
Find out more about what isn’t covered in the FAQs or the policy wording.
Who the money is paid to
The proceeds of your policy will be paid to you as the life insured, unless you assign ownership of the policy to someone else after the policy has been issued. You can also select a nominated beneficiary and in the event the policy owner is deceased, the nominated beneficiary will receive the funeral benefit. In the case where there is no surviving policy owner or nominated beneficiary your funeral benefit will be paid to your estate to be distributed according to your will or by your executors.
FAQs
Like all insurance policies, The Funeral Plan is designed to give you peace of mind – so you can relax knowing that your family can give you the send off you want, without having to worry about how they are going to pay for it.
Even if you have substantial assets, have set money aside in your will or have life insurance, it can take months to settle an estate. But the funeral home will want to be paid within a few weeks. And if you end up in long term care, you may find the rest home wants some form of proof that funeral expenses can be taken care of.
A Funeral Plan policy means funds are available as early as possible to meet final expenses – providing an ideal funding solution to one of life’s certainties.
You could consider purchasing a pre-paid funeral plan from a funeral director or setting up a funeral trust. But the money can be difficult to access if you change your mind.
Some plans require you to pay up front, locking your money away. Others allow you to pay by instalment but you only get back what you’ve paid in (plus interest and minus fees) which, depending on how long you contribute, may not be enough.
And unlike the insurance industry, which is regulated and monitored by the Reserve Bank, there are no specific regulations governing pre-paid funerals. So you would really need to do your homework to check that funds will be secure, what fees can be charged and how the money can be accessed.
The two year ‘accident only’ period means cover can be provided to everyone without having to ask a lot of medical questions or charge extra for any pre-existing conditions. So if you die from an illness or disease in the first two years the payout is limited to a refund of all premiums you have paid.
Insurance regulations mean we can only insure people who live in New Zealand. If you purchase the Funeral Plan and then intend to be outside of New Zealand for more than 6 months you will need to let us know.
The only events not covered are death by illness or disease during the first two years and suicide or attempted suicide in the first two years. In both cases however the policy will still pay out the full refund of premiums paid. After two years you are covered for death by any cause, no exceptions.
You are able to increase your cover at any time. Any additional cover you purchase will be a separate policy, so the two year ‘accident only’ period will be applied to this and the maximum total cover of all policies for one person can only be up to $20,000.
Any money payable under the policy will be paid to the policy owner.
When the policy is first issued we automatically consider you to be the policy owner so the money would be paid to you, unless you assign ownership to another person after the policy has been issued. You can email us at lifeinsurance@dplinsurance.co.nz and request a Memorandum of Transfer Form.
Once ownership is changed all policy communication will be directed to the new policy owner, even if you pay the premiums, and only the new policy owner can change ownership again.
You can also select a nominated beneficiary and in the event the policy owner is deceased, the nominated beneficiary will receive the money. In the case where there is no surviving policy owner or nominated beneficiary your life benefit will be paid to your estate.
If you decide the cover isn’t exactly what you want, you can cancel your policy within the first 30 days and any premiums paid will be refunded in full. After the 30 days you can still cancel the policy whenever you wish but only unused prepaid premium will be refunded. The policy isn’t a savings or investment plan so has no cash or residual value.
The policy owner, nominated beneficiary or the representatives of your estate can make a claim by calling us on 0800 666 004, emailing lifeinsurance@dplinsurance.co.nz or writing to DPL Insurance Limited, PO Box 33 1248 Takapuna, Auckland 0740.
We will let you know at that time what documentation is required, to be provided at the policy owner’s expense. Usually this would include the death certificate and coroner’s report (if one has been issued), along with proof of age (birth certificate or drivers license), if this isn’t given on the death certificate. Proof will also be required of the policy owner or nominated beneficiary’s identity if they are making the claim, or a grant of administration (probate or letters of administration) if the claim is being made by your estate.
We’ll always do our best to get things right and provide you with great service. However, if you have a complaint relating to our activities, in the first instance, please contact us. You can also learn more about our complaints process.
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