Funeral insurance can be a difficult concept to grasp; however, at Dollar Insurance, we are here to help simplify and break things down so that you can better understand this unique form of insurance. Here are a few common myths associated with funeral insurance and the reality behind them.

Myth 1: Funeral Insurance is only for retirees or the terminally ill 

Funeral insurance is often construed as a cover for the elderly; however, it’s valuable for people across a wide age range. Dollar Insurance offers funeral cover for NZ residents between the ages of 40 and 70. The unexpected but inevitable can happen to anyone, and having funeral insurance ensures that your loved ones receive a payout to help cover your final expenses at the time of your passing. 

Myth 2: Funeral Insurance is unaffordable 

Your funeral cover amount is determined by factors such as gender, age and smoker status and can be surprisingly affordable. At Dollar Insurance, acceptance is guaranteed for all NZ residents, and you can get funeral cover for as low as $1 a day. 

Myth 3: Funeral Insurance will cover all final expenses

Taking out Funeral insurance will ensure that you get a lump sum payout that will help offset the cost of your final expenses; however, whether it covers all costs or not depends on the amount of cover you’re eligible for under Dollar Insurance, among other factors such as family decisions and cultural considerations. It's important to understand your policy thoroughly to understand how much cover you can get. 

Myth 4: I don’t need both Life and Funeral Insurance 

Funeral Insurance and Life Insurance are meant for different purposes. A Funeral Insurance payout helps your loved ones take care of your final expenses, while Life Insurance provides monetary financial support for your loved ones upon your passing. 

Myth 5: Funeral Insurance is a racket

Funeral insurance is a legitimate and worthwhile financial product offered by reputed insurance companies such as Momentum Life. Dollar Insurance is a “$1 a day” funeral insurance offered by Momentum Life. 

In summary

Through a better understanding of Funeral Insurance, you can equip yourself to make an informed decision about how it can work for you and your family. It is a valuable tool that could protect your loved ones from financial strain during a difficult time.

It is important to note that Funeral Insurance is not a savings or investment plan and depending on how long you hold your policy, the total premiums you pay over time could exceed your level of cover.

If you’d like to know more about and purchase Funeral Insurance for $1 a day, go to our home page or call us on 0800 226 223 if you need assistance.  

Disclaimer: The information provided in this article is of a general nature only and does not take into account your personal situation or goals. You should consider whether the information is appropriate to your needs and seek independent financial advice, if required, to ensure an insurance product is suitable for you.

Any product information is correct at the time this article was published. For current product information, please visit the Dollar Insurance website.