Protect your family's financial future with life insurance from AIA, Southern Cross, nib and more. Compare term life, income protection and trauma cover.
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Our adviser panel: Partners Life, AIA, Fidelity Life, Asteron, nib, and AMP General. Other insurers (Southern Cross, AA, State, Tower, AMI, Vero, Youi etc.) covered in our educational content.
Active life-cover products from 5 New Zealand insurers, sourced from each insurer's published policy wording or brochure. Verbatim wording extracts only — no editorial claims. Source data refreshed .
AIA New Zealand
Cover types
Optional benefits
Source document is 31 months old (2023-10-10). Confirm current terms with the insurer or a licensed adviser before relying on these extracts.
AIA New Zealand
Optional benefits
Asteron Life
Terminal illness benefit
“You can apply to receive your Life Cover payment straight away if you're given less than 12 months to live. We normally pay this within seven days after you place a claim with us.”
Optional benefits
Source document is 19 months old (2024-10-14). Confirm current terms with the insurer or a licensed adviser before relying on these extracts.
Chubb Life NZ
Cover types
Chubb Life NZ
Cover types
Optional benefits
Fidelity Life
Source document is 13 months old (2025-04-30). Confirm current terms with the insurer or a licensed adviser before relying on these extracts.
Partners Life
Cover types
Terminal illness benefit
“Pays a lump sum if you're diagnosed as likely to pass away within the next 12 months.”
Optional benefits
InsureNZ shows a summary; LifeInsurer.co.nz has the full wording-level matrix across every product above — exclusions, waiting periods, premium structure, conversion benefits, and per-insurer claim history.
Open LifeInsurer.co.nzLife insurance provides financial protection for your loved ones if you die unexpectedly. It pays a lump sum benefit to your nominated beneficiaries, helping them maintain their standard of living, pay off debts, cover funeral costs, and secure their financial future without your income. Life insurance is one of the most important financial safety nets you can provide for your family.
Many New Zealand families would face significant financial hardship if a primary income earner died. With NZ mortgages, dependents' needs, and living costs continuing to rise, life insurance is an important tool for protecting your family's financial security (see FSC NZ research on underinsurance for current statistics).
Term life insurance is the most popular and affordable type of life insurance in New Zealand. It provides coverage for a specific period (the "term"), typically 10, 20, or 30 years, with level premiums that remain the same throughout the term. If you die during the term, your beneficiaries receive the full sum insured. If you outlive the term, coverage ends and no payout is made.
Term life insurance is ideal for covering specific financial obligations like mortgages, providing for dependent children until they're independent, or replacing income during your working years. Premiums tend to be lower than whole life insurance for the same coverage amount. Most NZ families choose term life insurance for its affordability and straightforward coverage.
Whole life insurance provides coverage for your entire lifetime, not just a specific term. Premiums typically increase annually as you age, and the policy includes an investment component that builds cash value over time. The payout is guaranteed whenever you die, whether that's at 45 or 95, as long as premiums are maintained.
While more expensive than term life insurance, whole life policies serve different purposes including estate planning, leaving an inheritance, covering funeral costs guaranteed regardless of when you die, and building cash value you can borrow against. Premiums for whole life insurance tend to be considerably higher than term life insurance for the same initial coverage amount.
Income protection insurance (also called disability insurance) pays a regular monthly benefit if you can't work due to illness or injury. Benefits replace a proportion of your pre-disability income (check policy wording for the exact replacement ratio) and continue until you can return to work, reach age 65, or exhaust the benefit period.
You choose a waiting period before benefits begin — longer waiting periods generally mean lower premiums. Income protection is crucial because ACC only covers accidents, not illness. If you develop cancer, have a heart attack, or experience chronic illness, ACC provides no income replacement. Income protection fills this critical gap, ensuring you can pay bills and maintain your lifestyle even if unable to work.
Trauma insurance pays a lump sum if you're diagnosed with a serious illness specified in the policy, such as cancer, heart attack, stroke, major organ failure, or serious injury. Unlike life insurance that pays when you die, trauma insurance pays while you're alive, providing funds for treatment, recovery, lifestyle changes, debt repayment, or lost income during recovery.
Modern trauma policies in New Zealand cover a wide range of specified medical conditions — check each insurer's condition list. The lump sum can be used however you choose — reducing work hours during recovery, paying for private treatment, modifying your home, or clearing debts to reduce financial stress during recovery.
Mortgage protection insurance is specialized life insurance designed to pay off your mortgage if you die. Coverage typically decreases as your mortgage balance reduces, resulting in lower premiums than level term insurance. However, level term insurance often provides better value as it maintains full coverage regardless of your mortgage balance, giving your family more financial flexibility.
Life insurance premiums vary significantly based on age, health, coverage amount, policy type (term life, income protection, trauma, whole life), smoking status, gender, and occupation. Premiums tend to be higher for older applicants, smokers, and those with serious health conditions. Bundling multiple types of cover with one insurer may attract a discount — confirm with the insurer. Request a comparison for a personalised quote.
Determining the right coverage amount is crucial. Too little leaves your family financially vulnerable; too much means paying unnecessary premiums. Consider these factors:
A common rule of thumb is 10 times your annual income, but this may not suit everyone. Walk through your own debts, income-replacement need, education costs, and funeral expenses to arrive at a total coverage figure — or consult a licensed financial adviser for a personalised recommendation.
AIA is one of New Zealand's larger life insurers in this category. They offer comprehensive life, trauma, income protection, and health insurance products. AIA is known for their Vitality program, which rewards healthy living with premium discounts, premium holidays, and other benefits — confirm current eligibility and benefit levels with the insurer. AIA has strong financial stability ratings and efficient claims processing.
Part of the Southern Cross Health Society, Southern Cross Life offers life, trauma, and income protection insurance. While better known for health insurance, their life insurance products are comprehensive and competitively priced. They offer simplified underwriting for lower coverage amounts, making it easier and faster to get covered. Southern Cross Life is particularly strong in providing integrated health and life insurance solutions.
nib offers life, trauma, and income protection insurance with straightforward policies. They're known for transparent pricing and simplified application processes. nib's life insurance integrates well with their health insurance products, and discounts may be available for bundling multiple policies — confirm with the insurer.
Partners Life is a specialized life and disability insurance provider offering comprehensive term life, whole life, trauma, income protection, and mortgage protection insurance. They're known for innovative products and competitive pricing. Partners Life offers flexible policy structures and often provides market-leading premiums for younger, healthy applicants. Their trauma insurance covers an extensive range of conditions.
Fidelity Life is New Zealand's largest locally-owned life insurer, offering life, trauma, income protection, and mortgage protection insurance. They're known for their CancerCare product, which provides comprehensive cancer coverage including experimental treatments. Fidelity Life offers competitive premiums and strong customer service, with a focus on claims support and financial education.
These options allow you to increase coverage at specific life events (marriage, birth of child, mortgage increase) without additional medical underwriting. This protects your ability to increase coverage even if your health deteriorates. Typically available up to age 50-55 with limits on increase amounts.
Premium waiver benefits continue your insurance coverage without requiring premium payments if you become totally disabled and can't work. After a waiting period (typically 3-6 months), the insurer pays your premiums until you can return to work or reach age 65. This ensures your family's protection continues even when you can't afford premiums.
Most life insurance policies include terminal illness cover, paying the death benefit early if you're diagnosed with a terminal condition with life expectancy under 12-24 months. This allows you to use the funds for treatment, quality of life improvements, or settling affairs before death. Usually included at no extra cost.
Some policies offer additional coverage (typically 2x the base amount) if death results from accident. While seemingly attractive, deaths from accidents are relatively uncommon compared to illness. Focus on adequate base coverage rather than relying on accidental death benefits.
Even without dependents, purchasing life insurance in your 20s locks in low premiums that remain level for the term duration. Consider basic term life to cover debts and funeral costs, plus income protection to protect against illness preventing work. Premiums are at their lowest, making this the ideal time to secure coverage before health issues develop.
This life stage requires maximum coverage - mortgage protection, income replacement for 15-20 years, children's education funding, and trauma insurance. Consider bundling term life, trauma, and income protection. Aim for coverage of 10-15 times your annual income plus mortgage balance. This is when life insurance is most critical and most commonly purchased.
As children become independent and mortgages are paid down, coverage needs typically decrease. However, premiums increase significantly with age. Review coverage annually, reducing amounts as obligations decrease. Consider whether to continue coverage into retirement for final expenses and legacy planning, or let term policies expire as financial dependents become self-sufficient.
Most term life insurance becomes prohibitively expensive or unavailable after 65. If coverage is still needed for funeral costs, final expenses, or leaving an inheritance, whole life insurance or funeral insurance may be more appropriate. Many retirees self-insure, setting aside funds for final expenses rather than paying high premiums.
When a life insurance policyholder dies, beneficiaries should contact the insurer as soon as practical. You'll need the policy number, death certificate, and identification documents. The insurer will provide a claim form requesting details about the death, including cause, date, and circumstances.
Required documentation typically includes the original death certificate, medical reports if death was from illness, police reports if death was accidental or suspicious, and the original policy document. The insurer may request additional information to verify the claim complies with policy terms.
Most straightforward life insurance claims are processed within 2-4 weeks. Complex cases involving suicide within exclusion periods, overseas deaths, or disputed circumstances may take longer and require additional investigation. Once approved, benefits are typically paid as a lump sum to nominated beneficiaries or the estate if no beneficiaries are named.
Life insurance in NZ pays a lump sum to your beneficiaries if you die during the policy term. It can cover funeral costs, mortgage payments, outstanding debts, living expenses for dependents, and children's education. Some policies also include terminal illness cover.
Life insurance premiums in New Zealand vary based on your age, coverage amount, health, smoking status, and policy type. Premiums tend to be higher for older applicants and smokers. Request a comparison for a personalised quote.
Term life insurance covers you for a specific period (typically 10-30 years) with level premiums, ending when the term expires. Whole life insurance covers you for your entire life with premiums that increase annually, and often includes an investment component. Term life is more affordable.
A common rule is 10 times your annual income, but consider your mortgage balance, debts, dependents' needs, future education costs, and funeral expenses. Coverage needs vary by family. Use calculators or consult a licensed financial adviser for personalised recommendations.
Income protection insurance pays a monthly benefit that replaces a proportion of your pre-disability income if you can't work due to illness or injury. Benefits usually start after a waiting period (commonly 14 to 90 days) and continue until you can return to work or reach the benefit period limit (often a fixed number of years or up to age 65). Check policy wording for the exact replacement ratio and benefit period.
Trauma insurance pays a lump sum if you're diagnosed with a serious illness like cancer, heart attack, stroke, or other specified conditions. The money can be used for treatment, recovery, lifestyle changes, or debt repayment. It's separate from life insurance and pays while you're alive.
Yes, but premiums may be higher or specific conditions excluded. Minor health issues may have minimal impact, while serious conditions can result in premium loadings or decline. Some insurers specialise in higher-risk applicants. Always disclose all health conditions.
Life insurance is less critical if you have no dependents, but consider it if you have debts others might inherit, want to leave money to family or charities, have business obligations, or want to lock in low premiums while young and healthy for future needs.
Match your term to your financial obligations. If you have 25 years left on your mortgage and children to support through university, consider a 25-30 year term. Many choose terms that run until retirement age (65) or until their mortgage is paid off.
If you stop paying premiums, your coverage typically lapses after a grace period (usually 30 days). Some policies allow reinstatement within a certain timeframe, but you may need to undergo new medical underwriting. Whole life policies may have cash values you can access.
Compare life insurance quotes from AIA, Southern Cross, nib and other leading NZ insurers. Find the right coverage for your family.
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