This article was written prior to 15 March 2021, before the launch of the new Financial Advice Regime, and was published for information purposes only. It is not being actively promoted by Dollar Insurance. Dollar Insurance does not provide financial advice about the suitability of their products and cannot take into account your personal situation or goals. Before you decide to take out a Dollar Insurance Policy, you should read the relevant Policy Wording document which contains the terms, conditions, and exclusions of the Policy, and seek independent financial advice, if required, to ensure the insurance policy is suitable for you.

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Did you know that less than 5% of Kiwis plan for their own funerals?¹ Getting funeral cover puts you ahead of most New Zealanders—and a lot of people in other countries, too!

But buying funeral cover probably wasn’t just about you; it likely had a lot to do with your family. Wanting to help them pay for your funeral or other final debts is a big reason why many people get covered. Still, your whānau might have a few questions about what happens with your policy in the future.

Let’s go through making a funeral insurance claim so you can have a quick chat with them about it (or point them in the direction of this article).

What do we need to review funeral insurance claims?

As much as we dislike paperwork, there’s no way to get around it when it comes to insurance claims. We need to cross our T’s and dot those I’s to make sure we pay claims correctly.

The first thing your family will need to do is download and fill out a Funeral Cover Benefit claim form. This includes some general information about you and your policy, the person making the claim, and the beneficiaries you’ve picked.

We’ll also need certified copies of documents to back up what’s been written on the form. These include evidence of death (like a death certificate), something that confirms your age (such as your birth certificate or driver’s licence) and ID for the person making the claim (for example, their current passport). Full details are on the claim form, so your family can refer to that or get in touch with us if they have any questions.

You might have noticed that we ask for certified copies of documents, not the originals. These are photocopies that are reviewed and signed by a Justice of the Peace, solicitor or anyone else with the legal power to do this. Please don’t send us the originals! We don’t need them, but your family might to take care of other important business.

What if some of the documents are in different languages?

Kiwis come from all over the world, meaning we sometimes get things that are printed or filled out in languages other than English. That’s okay, but whoever makes the claim will need to get them translated before sending them to us.

To do this, they’ll need to use a professional translating service that can confirm that the translation is accurate.

Who can make a claim on an insurance policy?

Anyone can start a funeral insurance claim, but it’s usually easier if one of your beneficiaries does. We need to protect everyone’s privacy (this includes you and your beneficiaries), so naturally we won’t talk about your policy with just anyone. The one exception is if a beneficiary is under 16 years old when you pass away. In that case, we’ll need to talk to their parent or legal guardian to sort things out.

Even if someone who isn’t a beneficiary on your policy starts a claim, the money will only be paid to the people you’ve picked. We’ll check their ID to make sure they are who they say they are, then transfer funds directly into their bank account. Again, this is a little different for people under 16. Their money needs to be paid to their parent or legal guardian.

How long do funeral insurance claims take?

We don’t like keeping people waiting, especially when it comes to funeral cover. Money is usually needed pretty fast to pay for the funeral, so we work as quickly as we can to get everything sorted for your family.

Funeral cover benefits are usually paid within two business days of us getting everything we need—really! We let you know if there’s a problem with the paperwork ASAP, so it can be fixed, and we can get on with processing the claim.

What else can I do to help now?

You won’t be around when a claim is made, but there are still a few things you could do now to help your family out even more:

• Pay your policy on time – Late payments could mean we have to cancel your policy. If it’s cancelled, your family won’t be able to make a claim. Update your credit card details before it expires or set up direct debit to help keep your policy going.
• Tell your family about your policy – Your family won’t know to make a claim if they don’t know about your policy! Let a trusted family member or close friend know you have one or where to find the policy documents.
• Talk about the exclusion – Family members don’t always read the policy wording before making a claim. They may not realise that for the first 24 months of the policy we’ll only pay a funeral cover benefit if death is caused by an accident. Pointing out this out could help them avoid a bit of frustration.

Get to know your policy

Even if we can’t make funeral insurance claims fun, we can make them as quick and easy as possible. Knowing more about the claims process could help everything go a bit smoother for your family when the time comes. 

1. FDANZ, Saving for your funeral is important to remember in Money Week, August 2017 

About the author: Dollar Insurance is all about making insurance as painless as possible, with easy to get funeral cover, for just $1 a day. 

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.