Compare life insurance quotes from 9+ NZ providers side-by-side. Find the right cover for your family: term life, trauma, income protection, and more. 100% free.
Choose the type that fits your situation.
A common guideline is 7 - 10x your annual income.
Your age is the single biggest factor in premium cost.
An overview of how life insurance works in New Zealand and why it matters for your family's financial security.
Life insurance pays a lump sum to your nominated beneficiaries if you die or are diagnosed with a terminal illness during the policy term. It's designed to replace your income and help your family maintain their standard of living, pay off the mortgage, and cover ongoing expenses without your financial contribution.
In New Zealand, life insurance is not compulsory, but it's particularly important if you have dependants, a mortgage, or debts that would fall to others. Unlike general insurance (car, home), life insurance in NZ is primarily sold through financial advisers, though some providers like Pinnacle Life offer direct online applications.
The NZ life insurance market is dominated by a handful of specialist providers - AIA, Partners Life, Fidelity Life, and Asteron Life - all of which are licensed and regulated by the Reserve Bank of New Zealand.
Key point: Only around 30% of New Zealanders have life insurance. If your family relies on your income, life insurance may be one of the most important financial decisions you make. A $250,000 term life policy for a healthy 30-year-old non-smoker can cost as little as $15 - $30/month.
Life insurance in NZ typically comes as part of a broader "personal risk" package that can include trauma cover, income protection, and total permanent disability (TPD). A financial adviser can help you build a package that covers your specific needs - and their service usually costs you nothing, as they're paid by the insurer. See the IFSO for dispute resolution information.
There are several types of personal risk insurance available. Here's how the main ones compare.
Pays a lump sum if you die or are diagnosed with a terminal illness during the policy term. The most affordable and commonly held type of life cover.
Pays a lump sum if you're diagnosed with a specified serious illness or condition, such as cancer, heart attack, or stroke. You don't have to die to claim.
Replaces up to 75% of your income if you can't work due to illness or injury. Pays monthly benefits rather than a lump sum, for up to 2 years or until age 65.
The right policy depends on your family situation, debts, income, and how much financial protection you need.
A side-by-side comparison of every major life insurance provider in New Zealand.
| Provider | Products | Direct / Adviser | Best For |
|---|---|---|---|
| AIA NZ | Life, Trauma, IP, TPD | Via adviser | Comprehensive range |
| Partners Life | Life, Trauma, IP, TPD, Mortgage | Via adviser | NZ-owned, full range |
| Fidelity Life | Life, Trauma, IP, TPD, Funeral | Via adviser | NZ-owned, NZX-listed |
| Asteron Life | Life, Trauma, IP, TPD | Via adviser | Strong claims record |
| Chubb Life | Life, Trauma, IP, TPD | Via adviser / bank | Bank channel (ANZ) |
| Southern Cross | Life, Funeral | Direct online | Trusted NZ brand |
| nib NZ | Life, Funeral | Direct online | Health + life bundle |
| Pinnacle Life | Life, Trauma, IP, Funeral | ✓ Direct online | No adviser needed |
| AMP | Life, Trauma, IP, TPD | Via adviser | Established provider |
IP = Income Protection | TPD = Total Permanent Disability | Funeral = Funeral/Final Expenses Cover
Disclaimer: Products and availability may change. Always verify details directly with the provider or your financial adviser before purchasing. If you've noticed something incorrect, please let us know.
In-depth look at New Zealand's leading life insurance providers.
One of NZ's largest life insurers with a comprehensive range of personal risk products. Known for innovative vitality wellness programme and strong financial backing. Also distributed via ASB Bank.
NZ-owned and operated life insurer that has rapidly grown to become one of the market leaders. Known for generous policy definitions, particularly on trauma cover, and strong adviser relationships.
New Zealand's largest NZ-owned and operated life insurer, listed on the NZX. Offers a full range of life and health products. Also distributed through Westpac Bank.
Established life insurer now part of TAL (owned by Dai-ichi Life, Japan). Highly regarded for claims experience and strong policy wording. Also distributed through AA Insurance.
Formerly known as Cigna NZ (and before that, OnePath), now part of the global Chubb group. Distributed through ANZ Bank as well as independent advisers. Comprehensive product range.
New Zealand's most well-known health insurer also offers life and funeral cover. Strong brand trust and direct online applications. Limited product range compared to specialist life insurers.
New Zealand's only fully direct-to-consumer life insurer. Apply online without needing a financial adviser. Straightforward products with competitive pricing.
Primarily known for health insurance in NZ, nib also offers life and funeral cover. Competitive pricing and the ability to bundle with health insurance for potential discounts.
Long-established life insurer in NZ offering a full range of personal risk products. Has undergone significant restructuring in recent years. Products distributed through advisers.
A comparison of what's typically covered under each type of life insurance product in NZ.
| Feature | Term Life | Trauma | Income Protection | Funeral |
|---|---|---|---|---|
| Death benefit (lump sum) | ✓ | ✗ | ✗ | ✓ (smaller) |
| Terminal illness benefit | ✓ | ✓ (some) | ✗ | ✗ |
| Critical illness diagnosis | ✗ | ✓ | ✗ | ✗ |
| Monthly income replacement | ✗ | ✗ | ✓ | ✗ |
| Funeral advance | ✓ (built-in) | ✗ | ✗ | ✓ |
| Children's cover | ✓ (built-in) | ✓ (some) | ✗ | ✗ |
| Financial planning benefit | ✓ (some) | ✓ (some) | ✗ | ✗ |
| Guaranteed acceptance | ✗ | ✗ | ✗ | ✓ (some) |
Note: Features vary between providers. "Built-in" means included at no extra cost with most policies. Always check the specific policy wording.
What life insurance typically does not cover in New Zealand.
Conditions you had before applying may be excluded or loaded (higher premium). Disclosure is critical - failing to disclose a pre-existing condition can void your entire policy. Some guaranteed acceptance funeral plans waive this requirement.
Most policies exclude death by suicide within the first 13 months of the policy (the "suicide exclusion period"). After this period, most policies will pay the full benefit. This period resets if you significantly increase your cover.
Activities such as skydiving, motorsport, mountaineering, or professional combat sports may be excluded or require an additional loading. If you participate in high-risk activities, disclose them during application.
Death or injury resulting from participation in criminal activity is generally excluded. This includes drug-related incidents and driving under the influence of alcohol or drugs.
Most policies exclude death caused by war, invasion, hostilities, or acts of terrorism. Some policies may cover terrorism-related death if you were not an active participant.
If you fail to disclose material health information, lifestyle risks, or other relevant facts when applying, the insurer may decline a claim or void the policy entirely. Always answer application questions honestly and completely.
Understanding the key factors that determine how much you'll pay.
The single biggest factor. The younger you are when you take out life insurance, the cheaper it will be. Premiums increase significantly with each decade - a 50-year-old pays roughly 4 - 5x what a 30-year-old pays for the same cover.
Smokers typically pay 50 - 100% more than non-smokers. Most insurers define a "non-smoker" as someone who hasn't smoked for at least 12 months. Vaping may also be classified as smoking by some providers.
Pre-existing conditions, family history of serious illness, BMI, blood pressure, and cholesterol levels all affect your premium. Some applications require blood tests for higher cover amounts (typically over $500,000).
More cover costs more. However, the relationship isn't linear - doubling your cover amount doesn't double your premium. The underwriting and administration costs are similar regardless of cover amount.
Statistically, women live longer than men in NZ, so term life premiums for women are typically lower. However, trauma premiums may be higher for women due to higher breast and cervical cancer rates.
Higher-risk occupations (construction, farming, mining, emergency services) attract higher premiums. Office workers and professionals typically get the lowest rates. Income protection premiums are especially sensitive to occupation.
Indicative monthly premiums for $250,000 term life cover (non-smoker, standard health). Actual premiums vary by provider and individual circumstances.
Disclaimer: Premiums shown are indicative estimates based on age-rated (stepped) premiums for $250,000 term life cover for a healthy non-smoker. Actual premiums vary by provider, gender, occupation, and health. These are not quotes - always obtain a personalised quote from a provider or adviser.
Practical tips to get the right cover at the best price.
Premiums are locked in based on your health at application time. Applying at 30 instead of 40 could save thousands over the life of the policy.
Level premiums cost more initially but stay flat. Stepped premiums start cheap but increase every year and can become very expensive after age 50.
Advisers compare policies across multiple providers and can negotiate better terms. Their service is free to you - they're paid commission by the insurer.
As your mortgage decreases and children become independent, you may be able to reduce your cover amount. Paying for more cover than you need wastes money.
For income protection, choosing a 13-week wait period instead of 4 weeks can reduce premiums by 30 - 40%. Use your emergency fund to cover the gap.
Use a needs analysis calculator to work out the right amount. Factor in your partner's income, existing savings, ACC entitlements, and KiwiSaver death benefit.
Some employers provide group life or salary continuance cover. If you have this, you may need less individual cover - but don't rely solely on it, as it ends when you leave the job.
After 12 months as a non-smoker, most providers will reclassify you and reduce your premiums by up to 50%. This is one of the biggest single savings you can make.
How to review your existing cover and switch providers if a better option is available.
Check your existing cover amounts, premium structure (level vs stepped), and any built-in benefits. Your adviser can provide a full policy summary. Look for any benefit updates or improvements your current insurer may offer.
Ask your adviser to run quotes across the market. Compare not just price, but policy definitions, exclusions, and built-in benefits. A cheaper policy with weaker trauma definitions may cost you more in the long run.
Never cancel your existing policy before new cover is in place and accepted. The new insurer will assess your current health, which may have changed since your original application. Wait until the new policy is active before cancelling.
Once your new policy is active and you've confirmed all terms are acceptable, cancel the old one. Keep records of both policies during the transition. Your adviser should manage this process for you.
Be cautious when switching life insurance:
The claims process for life insurance in NZ, step by step.
Contact the insurer or your financial adviser as soon as possible. For a death claim, a family member or the policy executor typically makes contact.
You'll need the policy number, death certificate (for life claims), medical reports (for trauma/IP), and proof of identity for the claimant.
Complete the insurer's claim form. Your adviser can help with this. For trauma claims, your doctor will need to provide supporting medical evidence.
The insurer reviews the claim against policy terms. They may request additional medical information. Most straightforward death claims are settled within 5 - 10 working days.
For life claims, the lump sum is paid to the nominated beneficiaries. For IP claims, monthly payments begin after the wait period. Funds are typically paid via bank transfer.
Key NZ-specific information about life insurance regulation, tax treatment, and the local market.
All life insurers in NZ must be licensed by the Reserve Bank of New Zealand. Financial advisers who sell life insurance are regulated by the Financial Markets Authority (FMA) under the Financial Markets Conduct Act 2013. All advisers must hold a full licence and meet competency, knowledge, and skill standards.
Life insurance lump sum payouts are not taxed in New Zealand. However, income protection benefits are taxable as they replace your salary. Life insurance premiums are not tax-deductible for individuals (they may be for some business purposes). Check with the IRD for specific tax questions.
If you have a complaint about your life insurer, first use their internal complaints process. If unresolved, escalate to the Insurance & Financial Services Ombudsman (IFSO), which is a free service. All licensed insurers must belong to an approved dispute resolution scheme.
The NZ life insurance market is relatively concentrated, with AIA, Partners Life, Fidelity Life, and Asteron Life holding the majority of in-force policies. Around 80% of life insurance in NZ is sold through financial advisers. The industry paid out over $1 billion in claims annually. NZ has lower life insurance uptake than Australia and the UK.
Key sections to read carefully in your life insurance policy wording.
The definitions section is critical, especially for trauma cover. How the insurer defines "cancer", "heart attack", or "total permanent disability" determines whether you can claim. Compare definitions across providers - they differ significantly.
Check for general exclusions (war, self-harm, criminal activity) and any specific exclusions applied to you during underwriting. Pre-existing condition exclusions will be listed in your personalised policy schedule.
Understand whether your premiums are:
Many policies include valuable extras at no additional cost. Look for funeral advance ($10,000 - $25,000 paid quickly), children's cover, bereavement support, premium waiver during disability, and financial planning benefits for your family.
Common questions about life insurance in New Zealand.
Key terms explained in plain language.
Disclaimer: The information on this page is for informational purposes only and does not constitute financial, insurance, or legal advice. All pricing shown is indicative and based on publicly available data and typical policyholder profiles as of early 2026. Actual premiums will vary based on your age, health, occupation, smoker status, and cover amount. These figures are not quotes - always obtain a personalised quote from a provider or financial adviser.
Note: Compare.org.nz may earn referral fees from some providers featured on this page. Sponsored content is clearly labelled and does not affect the completeness or order of our comparisons. Features, pricing, and policy terms may change without notice - always verify directly with the provider before purchasing. For personalised financial guidance, consider consulting a licensed financial adviser.
Compare life insurance options from 9+ NZ providers. Talk to a financial adviser for free, or get a direct quote from Pinnacle Life or Southern Cross online.
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