Life insurance

How we help

• Work out the right amount: based on your mortgage, debts, income and family, not a round number.
• Compare insurers: price, benefits and how each insurer treats your health history.
• Structure it well: the right premium type, ownership and any extras.
• Be there at claim time: we help your family through the process.

How much life cover do I need?

A simple way to estimate it: add up your mortgage and other debts, add the income your family would need for a set number of years (often until your youngest child finishes school), add future costs like education, then take away savings, KiwiSaver and any existing cover, including cover through work.

Example: a couple with a $600,000 mortgage and two young children might need the mortgage cleared, plus $30,000 a year of support for 10 years, plus $20,000 for other costs, less $40,000 of savings. That’s roughly $880,000 of cover for the main earner. Your number will depend on your own situation and budget.

Stepped or level premiums?

What affects the cost?

• Your age, health and family medical history
• Whether you smoke or vape
• The amount of cover and premium type
• Your occupation and some hobbies

Being honest on your application is essential. Leaving something out can mean a claim is declined when your family needs it most.

What’s usually included in life insurance in NZ?

Life insurance is more than a payout on death. When we reviewed the current policy wordings from the insurers we compare, most included these benefits at no extra cost:

• Terminal illness benefit: your full cover can be paid early if a specialist expects you to live less than 12 months.
• Early payment for some advanced illnesses: several insurers pay part of your cover (often 30%, capped at $250,000 to $600,000) for conditions like motor neurone disease or some stage 4 cancers, before the full terminal illness test is met.
• Bereavement advance: up to about $25,000 paid quickly after a death, to help with funeral and immediate costs while the claim is finalised.
• Life event increases: raise your cover without new health questions when you have a baby, marry, or take on a bigger mortgage. Most insurers allow this until about age 55 to 60.
• Family support: a payment if a dependent child dies (commonly $2,000 for children under 10 and $15,000 for older children), plus help with counselling, repatriation and financial or legal advice.

Every policy is different, and the exact amounts, ages and conditions are set out in each insurer’s policy wording. We’ll show you how they compare for your situation.

What isn’t covered?

Life insurance covers most causes of death, but there are some standard exclusions:

• Suicide in the first 13 months: most NZ policies exclude suicide or self-harm in the first 13 months of cover, or of any increase. If you’re replacing existing cover, this can sometimes be waived.
• Non-disclosure: if important health or lifestyle information wasn’t shared on your application, the insurer can decline a claim or cancel the policy. This is the most common reason claims go wrong, and the main thing a good adviser helps you avoid.
• Simplified or “no health questions” policies: these are easier to get but usually don’t cover pre-existing conditions for the first two years, and often have lower maximum cover.

If you or someone you know is struggling, free call or text 1737 any time to talk with a trained counsellor.

How the application works

• 1. Work out your needs. We look at your mortgage, debts, income, family and budget. Try our insurance needs calculator for a starting point.
• 2. Compare insurers. We compare premiums, built-in benefits and how each insurer is likely to view your health history.
• 3. Apply. You answer health and lifestyle questions. For larger amounts or some health conditions, the insurer may ask for GP notes or tests.
• 4. Get an offer. Many people are accepted on standard terms. Some get an exclusion or a higher premium (a loading), and we explain what that means before you decide.
• 5. Review your policy. You have a free-look period, usually 14 to 30 days depending on the insurer, to cancel for a full refund.

Who should have life insurance?

Anyone whose death would leave someone else with debt or lost income. Most of the families we help in Papakura, Takanini, Drury and across South Auckland are:

• First home buyers with a new mortgage, often in both partners’ names.
• Parents of young children, including stay-at-home parents. Replacing childcare and household work costs real money.
• Single-income households, where one person’s earnings cover everything.
• Business owners, who may need cover for business debts or a business partner.

If nobody depends on you financially and you have no debt, life cover may be less of a priority than income protection or trauma insurance.

What’s the best life insurance in NZ?

There isn’t one best policy for everyone. The right one depends on your age, health, budget and what you want the cover to do. When we compare insurers, we look at:

A comparison website can show prices, but it can’t tell you how an insurer will treat your health history or help your family at claim time. That’s where advice makes the difference.

This is general information only and isn’t personalised financial advice. Everyone’s situation is different, so please talk to one of our advisers before making decisions about your insurance.