The private death benefit insurance pays a death benefit to the relatives on the death of the policyholder. With this death grant, they can arrange the funeral according to the desires of the deceased, without being exposed to high financial burdens.

In the case of death benefit insurance, there are some special considerations that Funeral Insurance NZ would like to show you today.

Why Is Death Benefit Insurance Useful?

Previously, the survivors of statutory health insurance received a death benefit from health insurance for funeral expenses. This death grant was finally abolished in some countries. Although the relatives of civil servants still receive a death grant and some employers financially support the families of employees in the event of death. Usually, all burial costs must be paid by the deceased or, if that is not enough, by the relatives themselves.

The cost of a funeral quickly amounts to several thousand dollars. Also, there are current expenses for grave care. He who wants to ensure that these costs are covered and his/her own family is not additionally financially burdened can opt for a death benefit insurance.

How Does Death Benefit Insurance Work?

Death benefit insurance is a unique form of endowment life insurance. In contrast to the standard life insurance, however, the death benefit insurance does not save for retirement. Instead, the sum insured is paid out to the beneficiaries if the policyholder dies.

It does not matter when death occurs (exception: within the waiting time). The death benefit insurance can be regulated in the form of a one-off payment. More usual, however, is the payment of monthly contributions. How high these rely on the age of the insured at the start of the insurance, the personal health status and the amount of the insured sum.

What Is The Insured Sum For Death Benefit Insurance?

The amount of the insured sum in the case of the death benefit of Funeral Insurance NZ has a direct influence on the insurance premiums. So that the contributions are not too high, it should, therefore, be carefully considered how big the sum insured should be. Usual are 2,000 to 10,000 dollars. However, a significantly higher sum insured is possible, for example, if there are extraordinary wishes for your own funeral. If you wish a simple funeral, you will be fine with a low insured sum. To finance a more elaborate burial, the funeral service, but also costs such as the berth and the grave care, however, a higher amount is recommended.