New Zealanders with funeral insurance could pay double what their policy is actually worth, according to a consumer advocacy group.

Consumer NZ reviewed 10 funeral policies. Based on quotes for $NZ10,000 ($9503) of cover for a 64-year-old, it says consumers may pay 10-100% more than the policy value by age 84.

If a consumer cancels a policy, there is no refund.

Consumer NZ CEO Sue Chetwin says funeral insurance is widely advertised, but its lifetime costs are rarely disclosed.

“Funeral insurance marketing plays on people’s fears about being a burden on their families,” she said. “But it’s easy to end up paying thousands more in premiums than the insurance policy will pay out.

“If you can’t afford to keep up payments and want to cancel, there’s no refund and your money will be gone.”

Half the policies reviewed require premiums to be paid until the consumer dies, while the rest cap premiums at a specified age.

Among the 10 policies, only Greenwich Life stops premiums when the amount paid equals the sum insured. Dorchester Life customers must pay until they turn 100.

In Australia pressure from consumer groups and regulators led companies such as Hollard Insurance to cap premiums.

Consumer NZ says none of the insurers it has contacted plans to cap premiums.

In 2014 Australian consumer group Choice recommended consumers buy pre-paid funerals, funeral bonds or life insurance or open savings accounts rather than take funeral cover.