At Windsor Funerals, we believe everyone should be able to say goodbye on their own terms and should not have to compromise on a meaningful farewell because of cost. That’s why we work with families to design funerals that reflect what matters to them while staying within their budget.
That said, every farewell comes with some unavoidable expenses, and knowing how these will be managed is an important part of planning. Whether you are facing an unexpected death and are unsure how to pay for the funeral, or thinking ahead so your family has greater clarity when the time comes, we can walk you through the different options available.
Here are some of the main ways people in New Zealand choose to pay for a funeral:
Funeral Deposits
Some people choose to pay for some or all of their funeral in advance through a funeral deposit, which allows you to build up a dedicated fund specifically for future funeral expenses. Rather than paying for a particular funeral package, a funeral deposit involves setting money aside so it is available to help with funeral costs after you die. This can suit people who want to prepare financially while retaining flexibility around the details of their eventual funeral, and doesn’t lock you in to a specific funeral home.
One of the benefits of a funeral deposit is that you can build up the fund gradually rather than needing to set aside a large amount all at once. This can make it a practical option for people who are planning well ahead and want to put a little aside over time, at a pace that works for their budget.
If a funeral deposit sounds like something you would like to explore, it is worth getting independent financial advice and taking the time to understand how the fund works, who holds the money, whether it earns interest, and how the funds are accessed when they are needed.
At Windsor, we have partnered with Christian Savings to offer a funeral deposit service. You can learn more about this service on our funeral deposits blog.
Pre-paid Funeral Plans
Another option is with a pre-paid funeral plan. This is essentially a savings plan, where your funds are held in a dedicated account and used towards your funeral costs when the time comes. Unlike a funeral deposit, a pre-paid plan usually doesn’t pay interest or investment returns on contributions. One example is Now For Them, a funeral prepayment scheme established through the Funeral Directors Association of New Zealand (FDANZ).
Under current government policy, up to $10,000 held in a recognised prepaid funeral plan is excluded from asset testing for the Residential Care Subsidy. Both Christian Savings and Now For Them qualify, so it may be worth considering them as an alternative to saving in a bank account for your future funeral.
Before committing to a pre-paid plan, make sure you understand exactly what is covered, who holds the money, and what happens if your circumstances or wishes change. As with any financial decision, it’s a good idea to seek independent advice before making a commitment.
Funeral Insurance
Another way to prepare in advance is through funeral insurance. Like other forms of insurance, you generally pay regular premiums in exchange for a benefit that may be paid when you die. The resulting lump sum can then help your family meet funeral or related expenses.
The important thing is to understand what you are signing up for. Consider the premiums you will pay over time, the amount that will ultimately be paid out, any age limits or exclusions, and the circumstances in which cover may change or end.
Funeral insurance can work well for some people, but it is worth comparing the long-term cost with other ways of putting money aside when deciding on the option that works best for you.
Family Funded
You do not have to put money aside for a funeral in advance. Some families choose to cover funeral costs themselves when the time comes. This might be paid by one person, shared between relatives, or contributed to by a wider family, whānau or community.
For some families and cultures, contributing towards a loved one’s funeral is an important part of honouring them and supporting one another.
If this is your preference, it can still be helpful to talk about it ahead of time if you can. Having a clear conversation about what the family is comfortable contributing, who may be responsible for different costs, and what kind of funeral is realistic within that budget can help avoid misunderstandings or tension later. It also gives everyone a shared understanding of what matters most, so decisions can be made with greater confidence when the time comes.
The Deceased Person’s Savings or Estate
If the person who has died has money in their bank accounts, those funds may be able to be used towards their funeral expenses.
Although a person’s individual bank accounts are generally frozen when the bank is notified of their death, some New Zealand banks may release funds to pay a funeral invoice before probate or formal administration of the estate has been completed. Banks will usually require supporting documents, such as a death certificate and funeral invoice, and each bank will have its own requirements.
This option is not guaranteed, and policies around the release of funds can vary between banks. However, it is worth checking before family members feel they must personally cover the full cost. The executor or family can contact the deceased person’s bank to find out what documentation is required and whether funds can be made available.
If you are thinking ahead for your own funeral, it is also a good idea to check with your bank about how this would work in practice. Problems can arise when it is assumed that money will be readily available after a person’s death, particularly if accounts are held in their name only. Having this conversation with your bank in advance can help you understand what your spouse or family would be able to access and make a clear plan for funeral expenses.
Work and Income Funeral Grant
In some circumstances, Work and Income may be able to help with funeral costs through a Funeral Grant.
This assistance is intended for situations where the person who has died has little or no money available to meet reasonable funeral expenses. You do not need to already be receiving a benefit to apply, although eligibility depends on factors including the deceased person’s estate and, in some circumstances, family income and assets.
The grant may contribute towards costs such as funeral director services, a casket, cremation or burial fees, transport of the deceased, flowers, a celebrant and some costs associated with a tangihanga or funeral service. The amount available is capped and rates can change, so it is worth checking directly with Work and Income when the need arises.
ACC Support Following an Accidental Death
If someone dies as a result of an injury covered by ACC, their family may be eligible for additional financial support.
ACC can provide a funeral grant towards funeral or memorial expenses following a covered fatal injury. Because this support is linked to the cause of death and ACC cover, it will not apply to every funeral. If you think it may apply to your family, it is worth contacting ACC or asking your funeral director to help you understand the application process.
Veterans’ Affairs Funeral Assistance
Families of some New Zealand veterans may also be eligible for assistance from Veterans’ Affairs.
Veterans’ Affairs provides a one-off Funeral Expenses contribution for eligible veterans. Eligibility depends on factors including the veteran’s service history, whether they completed qualifying service and, in some circumstances, whether the death was service-related.
If the person who has died served in the New Zealand Armed Forces, it is worth checking with Veterans’ Affairs to find out if assistance is available.
Which Funeral Payment Option Is Right for You?
There is no single right way to prepare for the cost of a funeral, and sometimes you do not get the chance to prepare at all. If you have experienced a sudden loss, the financial side of arranging a funeral can come as an added shock. The approach that works best will depend on your circumstances, and our team is here to help you understand the options available.
Whether you are planning ahead or covering the cost of a loved one’s funeral, a useful first step is simply understanding what a funeral may cost and talking with the people closest to you. Having these conversations can help you or your family make decisions with greater clarity and create a farewell that feels both meaningful and financially manageable.
If you would like to get a ballpark idea of how much a funeral may cost, our free Funeral Cost Calculator can help you estimate the amount you may wish to allow for.
At Windsor Funerals, we are happy to talk through funeral costs openly and transparently, help you understand the options available, and work with you to plan a meaningful farewell that fits within your budget. If you would like some guidance or simply have questions, get in touch with our team. There is no obligation, and we are here to help.
The information provided by Windsor Funerals is intended as general guidance to help families understand their options for covering funeral costs. Windsor Funerals does not provide financial advice. Financial products and payment options may be subject to eligibility requirements, fees, risks and terms and conditions. We encourage you to check the details with the relevant provider and seek independent advice from a licensed financial adviser where appropriate.
