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Life Insurance in New Zealand

Protect your family's financial future

Life insurance provides a lump sum payment to your loved ones if you pass away. It helps cover mortgage payments, living expenses, children's education, and funeral costs, ensuring your family can maintain their lifestyle even if you're not there to provide for them.

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Why Life Insurance Matters

Immediate Financial Support
Your family receives funds within weeks, not months
Tax-Free Payout
No tax deducted from life insurance benefits in NZ
More Affordable Than You Think
Comprehensive cover from as little as $20/month

Life insurance is about protecting your family when they're most vulnerable. There's no right level of life cover, it can be used for anything you can think of: replacing lost income, covering the mortgage, ensuring your children's future isn't compromised, or leaving a financial legacy. Many New Zealanders also pair life insurance with trauma insurance and income protection to create comprehensive cover. Comparing life insurance options helps you find a policy that fits your budget and provides genuine protection for what matters most.

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Who Needs Life Insurance?

Parents with dependent children
Anyone with a mortgage or significant debt
Business owners with partners or key staff
Single income families
Anyone who wants to leave a financial legacy
Self-employed or contract workers

Even if you have KiwiSaver or savings, life insurance ensures your family has immediate access to funds when they need it most.

How Much Life Insurance Do You Need?

Calculating the right amount of life cover depends on your income, debts, and family circumstances, here's a simple framework to help you get started.

Common Uses for Life Insurance

Debt Coverage
Clear mortgage, loans, and credit cards
Income Replacement
Support your partner's ongoing expenses
Funeral & Final Expenses
Cover burial costs and estate settlement
Education Fund
Secure your children's schooling and university
Legacy Fund
Leave a financial gift for loved ones
Cash Contingency
Emergency buffer for unexpected costs
Balancing Inheritance
Equalise distribution between family members

What Does Life Insurance Cost?

Life insurance is more affordable than most people think. Here are typical premiums for $500,000 coverage:

Age 20, non-smoker (Male)
~$47/month
Age 20, non-smoker (Female)
~$29/month
Age 30, non-smoker (Male)
~$31/month
Age 30, non-smoker (Female)
~$20/month
Age 40, non-smoker (Male)
~$39/month
Age 40, non-smoker (Female)
~$32/month

*Indicative pricing only. Actual premiums vary based on health, occupation, and insurer.

These sample premiums give you a starting point, but your actual cost depends on factors like your health, lifestyle, occupation, and chosen insurer. Some insurers offer better rates for specific profiles, for example, non-smokers, office workers, or those with no pre-existing conditions. That's why comparing life insurance quotes from multiple providers is important. Blake will run personalised quotes from AIA, Southern Cross, Chubb, and nib to find you the best value for your circumstances.

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How Life Insurance Works in New Zealand

Life insurance in New Zealand is straightforward. You pay a regular premium (weekly, fortnightly, or monthly) and if you pass away while the policy is active, your beneficiaries receive a tax-free lump sum. Many policies have no expiry, meaning as long as you continue paying premiums, you remain covered.

Premium Payment Options

Rate for Age: Premiums are based on your age and typically increase each year as your risk to the insurer increases.
Level Premiums: Locked in when your policy is issued and can be guaranteed to a certain age or time period. They cost more initially but can become more affordable over time.

To apply, we assist you with completing an application that includes a health, occupation, and lifestyle questionnaire. Depending on your health, your application may be assessed by an underwriting team. In some cases, an offer can be provided immediately. If additional information is required, insurers can request medical records on your behalf once you give permission. The underwriting process typically takes up to 14 working days.

It's crucial to be honest about your health, non-disclosure can void your cover. Once approved, you'll receive your policy documents outlining what's covered, any exclusions, and your premium. You can adjust your cover, add accelerated options such as trauma insurance or income protection, or cancel at any time.

When a claim is made, beneficiaries contact the insurer with a death certificate and policy details. If everything is in order, insurers typically pay within 2 to 4 weeks. The payout is tax-free and can be used for anything: mortgage, debts, living expenses, or children's education. Comparing life insurance providers helps ensure you get the right cover at a competitive price. We work with AIA, Southern Cross, Chubb, and nib to find a policy that fits your needs and budget, with clear advice and no jargon.

Frequently Asked Questions

Common questions about life insurance underwriting, pre-existing conditions, and policy options in New Zealand.

Do I need life insurance if I have KiwiSaver?
It depends on your circumstances. KiwiSaver will be paid out when you die, but consider whether your balance would cover core expenses like your mortgage, debt, and living costs. Life insurance has a maximum application age of 70, and pre-existing conditions become more likely to affect eligibility as you age. KiwiSaver is designed for retirement; life insurance is designed for immediate financial protection.
What if I have pre-existing health conditions?
You can still get cover. Some pre-existing conditions have no impact on your cover, while others may result in higher premiums or specific exclusions. It depends on the condition and insurer. We'll help you find the best option available.
Am I locked into my policy?
No. The insurers we work with do not have lock-in periods. You can cancel anytime, though you'll lose your coverage once you stop paying premiums.
How long does the application process take?
The insurers we work with have digital smart application processes that provide an offer of insurance immediately for straightforward cases. Complex cases that require additional underwriting take 1 to 4 weeks. We'll guide you through every step.
Is the payout taxed?
No, life insurance payouts are generally tax-free in New Zealand.
How much life insurance do I actually need?
This depends on your income, debts, dependants, and future goals. Many people insure enough to clear major debts and support their family for several years. A personalised recommendation ensures you're not over- or under-insured.
Can I change or cancel my life insurance later?
Yes. Life insurance is flexible, you can usually increase, reduce, or cancel cover as your circumstances change. There are no penalties for cancelling.
Will my premiums increase over time?
This depends on the policy type. Some premiums increase as you age, while others can be locked in for certainty. This is discussed upfront so you can choose what suits you best.
Do I need life insurance if I'm young or healthy?
Life insurance is often cheaper and easier to obtain when you're younger and in good health. Putting cover in place early can lock in lower premiums and future flexibility.

Have more questions?

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Get Personalised Life Insurance Quotes in Minutes

Compare life insurance from AIA, Southern Cross, Chubb, and nib. Blake will help you understand your options, calculate your needs, and find the right cover at the best price. Free consultation, no obligation.

Get Free QuoteOr call Blake directly: 06 215 4345