Compare Life Insurance NZ [2026]: Best Companies & Quotes
Who are the best life insurance companies?
Willi Olsen
Protection Specialist · FSP524986
Sol Brown
Protection Specialist · FSP1009612
The best life insurance is the one that pays when you claim, and pays fast. No hassle, no pushback. An easy process that provides financial help to you and your family during a difficult and stressful time.
Imagine the moment a claim is made.
Most people imagine an accident, a vehicle, a road, something sudden.
The claims data tell a different story.
According to insurers’ claims data, around nine in ten (9/10) death and terminal illness claims are related to cancer, heart disease, or stroke – conditions that develop unseen over many years, and then strike overnight.
This is the make-or-break moment when a policy proves its worth.
An accident is a rare event; illness is a common one.
We have carefully selected the insurers we recommend, based on claims paid and reputation.
And that they pay the claim without delay.
New Zealand’s leading insurers paid out a record $900 million in life and terminal illness claims in 2025.
That record, not the headline premium, is what this comparison is based on.
Best Life Insurance Companies in Detail:
| Insurer | Financial strength rating |
Claims acceptance rate |
Claims paid | Premium structure | Entry age | NZ-owned | Distribution | Standout feature |
|---|---|---|---|---|---|---|---|---|
| AIA New Zealand | AA (Very Strong)Fitch, affirmed December 2025 | 91%2025 | $257.73mdeath and terminal illness, 2025 | Stepped & levelGuaranteed conversion to level before 65 | 10 to 70 | No | Adviser | AIA Vitality |
| Asteron Life | A+ (Strong)Fitch, affirmed October 2025 | 99.90%2025 | $46.6mdeath and terminal illness, 2025 | Stepped & levelPremium freeze option (cover then reduces) | 11 to 75 | No | Adviser | Complimentary $50k Kids Trauma Cover |
| Chubb Life | A (Excellent)AM Best, affirmed January 2026 | 96%2024 | Not stated | Stepped & level | 10 to 70 | No | Adviser | 15% lifetime premium discount |
| Fidelity Life | A- (Excellent)AM Best, affirmed March 2026 | 93%year to June 2025 | $247.7mall claims, year to June 2025 | Stepped & level | 16 to 75 | Yes | Adviser | Largest NZ-owned insurer |
| Partners Life | A (Excellent)AM Best, affirmed February 2026 | 95%year to 31 March 2025 | $325mall claims, year to 31 March 2025 | Stepped & level | 10 to 70 | No | Adviser | Life Advantage and Loyalty discounts |
Swipe sideways to see every column.
1. AIA New Zealand
AIA New Zealand is the largest life insurer in New Zealand, by both claims paid and in-force policies. Unique to the New Zealand market, AIA rewards its AIA Vitality members for everyday healthy choices with premium discounts and rewards. However, to make the most of the policy, you’ll need to keep physically active
Who are AIA New Zealand
AIA New Zealand is a subsidiary of AIA Group Limited, one of the largest publicly listed life insurers in the Asia-Pacific region. Based in Takapuna, Auckland, AIA New Zealand has been protecting Kiwis since 1981.
Cover from AIA New Zealand is arranged through financial advisers nationwide, with a streamlined digital underwriting process behind the application.
Through the AIA Vitality programme, AIA New Zealand also rewards members for healthy living, giving it a distinctive wellness focus across its personal and business cover. It has protected more than 789,000 people and families, and paid $257.73m in death and terminal illness claims in 2025.
AIA New Zealand's policy details
AIA New Zealand offers stepped and level, and Cover for Life policies that will pay out if you pass away during the policy term.
You have the option of level term life insurance (where your cover amount and premiums stay the same throughout the policy term), or stepped, where premiums increase with age and, if inflation-adjusted, the cover level increases each year without medical underwriting.
- Policies are available to NZ Residents aged 10 – 70
- Maximum amount of cover up to: Unlimited (subject to financial underwriting)
- Terminal Illness cover is included at no extra cost, where you can make an early terminal illness claim if diagnosed with a terminal illness and given less than 12 months to live.
- AIA Vitality & AIA Vitality Premium discount: supports you to live healthily, and rewards you with premium discounts that increase the more you engage.
What other policies do AIA New Zealand offer?
- Life insurance with in-built critical illness cover that pays out if you are diagnosed with a specific serious illness or pass away during the policy term.
- Additional Critical Illness cover (standalone)
- Family Protection life insurance: pays a monthly amount, instead of a lump sum, so your family can continue their lifestyle if you pass away.
- Accidental Death: A simpler type of life insurance that provides a lump sum should you die as a result of an accident.
- Mortgage, Income or Rent Cover (MIRC): Provides a monthly payment to replace a portion of your income, or to help you with living expenses such as your mortgage repayments or rental obligations if you are unable to work due to illness or injury.
- Income Protection (IP): Provides a monthly payment to replace a portion of your income if you have an illness or injury and are unable to work. Within IP, you have three options to choose from: Agreed Value, Indemnity Cover and Loss of Earnings. Each of these options differs in how your cover amount is calculated at application and at the time of a claim.
What is AIA New Zealand's claims acceptance rate?
In 2025, AIA New Zealand paid out 91% of all claims across all its insurance products, including health insurance, trauma cover, income protection, mortgage and living cover and life insurance.
Rather than a separate acceptance rate for each insurance product, AIA combines all the claims acceptance rate in one number.
What are the benefits of taking out cover with AIA Insurance?
Special Events Boost: increase your cover without any further medical tests after significant life events such as buying a house, getting married or having a baby
Terminal Illness Benefit: You can receive an early payment of your cover if you are diagnosed with a terminal illness and are given 12 months or less to live
Specified Terminal Conditions Benefit: an early partial payment (up to 30% of your cover or up to $250,000) for certain specified terminal conditions.
Bereavement Support: an early payment to help with immediate costs such as the funeral
Repatriation Benefit: financial assistance up to $20,000 to bring you home if you die overseas
Financial and Legal Advice Benefit: reimbursement up to $2,500 for professional financial or legal advice
Counselling Benefit: Up to $2,500 for professional counselling for you or your family related to a claim
Parents’ Bereavement Benefit: a payment made to you if your child dies
Premium Conversion Facility: Option to convert to level premiums before age 65 with no further medical evidence
Worldwide cover: you are covered no matter where you are
What Recognition has AIA New Zealand won?
AIA New Zealand has the strongest financial strength rating: an AA (Very Strong) rating from Fitch, affirmed in December 2025, the highest on this panel.
Alongside the rating, AIA holds a range of corporate, sustainability, and inclusion accreditations, including
- Toitū carbon reduce certification (2022),
- The Accessibility Tick (2023),
- The Advanced Gender Tick (2024),
- and Pride Pledge (2025).
- The Financial Services Council recognised AIA for Excellence in Wellbeing and Inclusion and for Excellence in Sustainability Practices (2023), and
- ANZIIF recognised it for Excellence in Workplace Diversity and Inclusion (2023).
2. Asteron Life Insurance
Asteron Life is highly rated by independent reviewers and clients and provides personal and business insurance for Kiwis through its accredited adviser networks in New Zealand.
Who are Asteron Life New Zealand
Asteron Life NZ has been in the financial services space for many years, dating back to 1878. The company that would become Royal and Sun Alliance was founded that year.
2024: Resolution Life Australasia acquired Asteron Life New Zealand from Suncorp Group. Just ten months later, in October 2025, Resolution Life Australasia itself was acquired by Japanese insurer Nippon Life. Asteron Life will be rebranded Acenda Life in New Zealand from 2027, uniting Asteron Life and Resolution Life as one company backed by Nippon Life (subject to regulatory approval, announced June 2026). Your claims and policies will continue as usual and adviser partnerships will transition in phases beginning in early 2027.
Asteron Life now has more than 200,000 people and families covered and paid out $46.6m in death and terminal illness claims in 2025 alone.
Asteron Life New Zealand's policy details
Asteron Life offers stepped and level policies that will pay out if you pass away during the policy term.
You can go for level term life insurance (where your amount of cover and premiums remain the same for the policy term), or stepped, where premiums increase with age and the amount of cover increases each year (if inflation-adjusted), without medical underwriting.
- Policies are available to NZ Residents aged 11 – 75
- Maximum cover amount up to: Unlimited (subject to financial underwriting)
- Terminal Illness cover is included at no extra cost, where you can make an early terminal illness claim if diagnosed with a terminal illness and given less than 12 months to live.
- Complimentary $50k Kids Trauma Cover is offered and subject to underwriting approval
- Connected Care Expert medical, mental health and wellbeing advice
What other policies do Asteron Life offer?
Life insurance with in-built trauma illness cover that pays out if you are diagnosed with a specific serious illness or pass away during the policy term.
- Additional Critical Illness cover (standalone) and severity-based trauma cover.
- Total Permanent Disability
- Accidental Death: A simpler type of life insurance that provides a lump sum should you die as a result of an accident.
- Income Protection Insurance:
What is Asteron Life's claims acceptance rate?
What are the benefits of taking out cover with Asteron Life?
Asteron Life’s personal and business insurance is offered through its Asteron Life Complete range, which includes the following benefits:
Funeral advancement: an advance of $15,000 from your life cover to assist with immediate expenses such as the funeral following a claim acceptance
Terminal Illness Benefit: the entire lump sum is paid out early if you have a terminal illness diagnosis
Special Events Increase: buy more cover without further medical checks following a life event such as buying a mortgage, getting married, having a child or a pay rise
Automatic Inflation Adjustment: your cover grows in line with the cost of living through CPI Adjustments
Guaranteed insurability & future product improvements: your cover keeps the benefit of future product improvements
Financial planning benefit: reimbursement of up to $2,500 for financial advice when a claim is paid
Bereavement support: counselling support for you and your family
Premium holiday: the ability to halt premiums in some situations
International cover: covered wherever you are in the world
What Recognition & Awards has Asteron Life won?
Asteron Life holds an A+ (Strong) financial strength rating from Fitch, affirmed in October 2025.
Asteron Life are no stranger to winning an award. Below, we have highlighted some of their most recent and most relevant award wins:
- Life Insurance Company of the Year at the ANZIIF New Zealand Insurance Industry Awards five times, including in 2021, 2023, and 2024, with the 2024 award
- The insurer has also been ranked number one by advisers for claims management and adviser relationships.
3. Chubb Life Insurance
Chubb Life Insurance, a trusted household name, credits new clients up to three months of premiums when they use its Life Lens scanner tool. Chubb Life also applies a 15% lifetime premium discount to clients with a body mass index between 18.5 and 26.99 who have not been smoking or vaping the last 12 months
Who are Chubb New Zealand Limited
Chubb Life Insurance New Zealand Limited has been selling life cover under the Chubb brand since 2022, when Chubb bought Cigna’s New Zealand business and rebranded it the following year. The business itself has roots back to 1967, with a claims history in New Zealand stretching back more than a century through its Cigna and OnePath heritage.
Today, Chubb policies are sold through adviser networks across New Zealand, and their products include car, home, travel and life insurance.
Chubb Life now has a 15.8% share of the life insurance market in New Zealand (Q3 2024) and protects 250,000 individuals and families nationwide.
Chubb Life New Zealand's policy details
- Policies are available to NZ Residents aged 10 – 70
- Maximum cover amount up to: Unlimited (subject to financial underwriting)
- Terminal Illness cover is included at no extra cost, where you can make an early terminal illness claim if diagnosed with a terminal illness and given less than 12 months to live.
- Complimentary $50k Kids Trauma Cover is offered and subject to underwriting approval
- Client Benefits: up to $300 per appointment for health, well-being, career and business advice, and up to $1,000 for legal services such as wills and buy/sell agreements, where a need arises following a life event
What other policies do Chubb Life offer?
Assurance Extra is a master policy that allows you to combine up to 9 covers to suit your needs. You can add to Life Cover and Life Income Cover, which pays a monthly amount instead of a lump sum:
– Trauma Cover & Moderate Trauma Cover: a one-off payment if you are diagnosed with a specified illness or condition for the first time
– Total Disablement Cover: A lump sum if you become totally disabled through illness or injury
– Income Cover: monthly amount to replace income lost if you are unable to work because of illness or injury
– Mortgage Repayment Cover: monthly amount to help pay your mortgage or rent if you are unable to work due to illness or injury
– Redundancy Cover: a monthly benefit for up to six months if you’re made redundant against your will
– Specific Injury Cover: a lump sum if you suffer one of the covered injuries in an accident
– Premium Cover: If you are made redundant, become handicapped or go bankrupt, Chubb Life NZ pays the premiums to maintain your cover in force, after a couple of weeks’ standdown.
What is Chubb Life's claims acceptance rate?
What are the benefits of taking out cover with Chubb Life?
Chubb Life’s personal and business insurance is offered through its Chubb Life Assurance Extra and Assurance Extra Business Life range, which includes the following benefits.
Life Cover Benefit: your full sum insured paid as a lump sum if you die, or paid monthly to your dependents
Terminal Illness Benefit: your full sum insured paid early if you are diagnosed with a terminal illness likely to result in death within 12 months
Advance Terminal Illness Benefit: an early payment of 30% of your sum insured, up to $300,000, on diagnosis of a listed condition to help with immediate costs
Bereavement Support Benefit: an early payment of up to $25,000 to help your family with funeral and other immediate expenses
Funeral Transfer Benefit: reimbursement of up to $20,000 to bring you home to New Zealand or your home country if you die while overseas
Financial and Legal Advice Benefit: reimbursement of up to $2,500 toward professional advice on using your benefit payment
Life Events Benefit: increase your cover by up to $250,000 after a life event such as a mortgage, marriage, a child, or a pay rise, without further health checks
Life Events Additional Cover Benefit: add or increase accelerated Trauma or Complete Disablement Cover by up to $100,000 after a life event, without health checks
Optional Guaranteed Insurability: the option to increase your cover by up to $200,000 every two years without health checks
What Recognition & Awards has Chubb Life won?
Chubb Life holds an A (Excellent) financial strength rating from A.M. Best Company, Inc., affirmed in January 2026.
Chubb Life NZ awards cabinet is fairly modest to be fair,
Below, we have highlighted some of their most recent and most relevant award wins:
- 2026 Reader’s Digest Trusted Brands Awards
4. Fidelity Life Insurance
Fidelity Life is New Zealand’s largest locally owned life insurer, with an A- (Excellent) financial strength rating from AM Best for 30 years in a row and has paid out over $2 billion in claims since 1973.
Who are Fidelity Life New Zealand
Fidelity Life has been protecting New Zealanders since 1973, when founders Gordon and Shirley Watson started the company on a simple idea: to do insurance better. It has grown into the largest locally owned life insurer in the country, distributing through financial advisers nationwide.
Fidelity Life, owned by NZ Super Fund as its largest shareholder and Ngāi Tahu Holdings, which will anchor the company for decades to come. Its development has included the acquisition of the life books of Westpac Life, Tower Life and Farmers Mutual Life.
In the year to June 2025, Fidelity Life paid $247.7m in claims to 2,279 New Zealand customers, including $147.3m in life cover claims. Across its 52-year history, it has now paid more than $2 billion in claims.
Fidelity Life New Zealand's policy details
Fidelity Life term life insurance pays out the cover amount upon death or terminal illness. You can select between two premium structures: level and stepped. Depending on the structure you choose, the premium and cover amount work differently over time.
Level structure: Your premium and your cover amount remain the same for the whole policy period. So you know two things from day one – exactly what you’ll pay, and exactly what your family will get.
Stepped structure: If you have a stepped structure, your premium will increase as you age. If the policy is inflation-adjusted, your cover amount will also increase a little each year to keep up with the cost of living, and it happens automatically with no more medical examinations.
- Policies are available to NZ Residents aged 16 – 75
- Maximum cover amount up to: No maximum level of cover, subject to underwriting
- Terminal Illness cover is included at no extra cost, where you can make an early terminal illness claim if diagnosed with a terminal illness and given less than 12 months to live.
What other policies do Fidelity Life offer?
Fidelity Life’s personal cover is part of its Platinum Plus range, a modular setup where the Life cover can either stand alone or link up with other covers, so you can build a full personal protection plan.
You can add to Life cover:
Trauma Cover: a lump sum if you’re diagnosed with one of the covered serious conditions. Available accelerated (drawn from your Life cover) or as standalone cover.
Trauma Multi Cover: You can claim more than once for different, unrelated conditions, rather than a single payout.
Total and permanent disability cover: a lump sum if you suffer a total and permanent disability, available accelerated or standalone.
Income Protection: a monthly benefit to replace some of your income if you are unable to work due to illness or injury.
Mortgage Repayment Cover: a monthly benefit to help with your home loan if you can’t work because of illness or injury.
What is Fidelity Life's claims acceptance rate?
Fidelity Life paid 93% of all new claims and paid out $247.7m to 2,279 New Zealand customers in the year to June 2025. Fidelity Life even provides their acceptance rate per product so you have a clear and transparent picture. Life cover 97%, income protection 95%, trauma and trauma multi 84% and complete and permanent disability 69%. Fidelity Life also provided $772,000 in rehabilitation support to help clients get back on their feet and return to work.
What are the benefits of taking out cover with Fidelity Life?
Fidelity Life’s personal cover is based on its Platinum Plus range and provides the following benefits at no extra cost:
Death Benefit: In the event of your death through sickness, accident or natural causes Fidelity Life will pay the full amount of your cover as a lump sum.
Terminal Illness Benefit: you get paid the full amount of your cover early if a specialist says you have a terminal illness and are expected to die within 12 months.
Terminal Illness Partial Benefit: This is an early payment of the lesser of 30% of your cover amount or $250,000 upon diagnosis of one of the listed terminal conditions.
Bereavement Benefit: An immediate advance of up to $25,000 to assist your family with early expenses, offset against the sum insured.
Repatriation Benefit: Reimbursement of the cost of returning you to your home, up to $20,000.
Child’s Funeral Benefit: up to $15,000 in the event of death of a child aged 2 to 20.
Benefit for Grief Counselling: up to $2,500 for counselling for your partner or child when a lump sum benefit is paid.
Financial Planning and Legal Advice Benefit: up to $2,500 towards professional advice on how to use your payment for financial planning and legal advice.
Special Events: increase your cover amount by up to $250,000, with no additional health information required, after a life event such as marriage, a new baby, a mortgage increase, or a pay rise.
Business Events: In the event of major business events, you can increase your cover amount by up to $250,000 without health information.
What Recognition & Awards has Fidelity Life won?
Fidelity Life holds an A- (Excellent) financial strength rating from AM Best, reaffirmed in March 2026 for the 30th consecutive year, a rating it has held since 1996.
Fidelity Life’s standout recognition is its position as New Zealand’s largest locally owned life insurer, backed by the NZ Super Fund and Ngāi Tahu Holdings. Below are some of the markers of its strength and longevity:
Security Team of the Year at the 2024 iSANZ Awards
More than $2 billion paid in claims since 1973
30 consecutive years of an A- (Excellent) rating from AM Best
A full product-by-product claims breakdown published every year for transparency
Long-term New Zealand institutional ownership built for stability
5. Partners Life Insurance
Partners Life is a New Zealand life and health insurer, and the only one ever awarded 5 stars in the Lewers Insurance Benchmark Study every year since its inception in 2011, and offers a Loyalty Premium Discount unique to the New Zealand market that increases year on year for every year a policy stays in force.
Who are Partners Life New Zealand
Partners Life was founded by Naomi Ballantyne. In 2011, it began selling personal and business insurance to New Zealanders. Partners Life is the second largest life insurer in New Zealand, based on in-force and new business premiums. The company is located in Takapuna, Auckland.
In 2022, Daido Life Insurance Company, a subsidiary of Dai-ichi Life Holdings, acquired Partners Life. Dai-ichi Life, founded in Japan in 1902, is one of the world’s largest life insurers. Partners Life remains a stand-alone, New Zealand-operated business within the group
Partners Life cover is arranged through accredited advisers across New Zealand. The company now protects more than 340,000 New Zealand customers. In the 2024 to 2025 financial year, it paid 95% of all claims, worth $325m, which took its total payouts since 2011 to over $1.6 billion.
Partners Life New Zealand's policy details
Partners Life offers stepped and level Life Cover that pays out if you pass away during the policy term, or are diagnosed with a terminal illness.
You can choose level term life insurance (where your cover amount and premiums stay the same throughout the policy term), or stepped, where premiums increase with age and, if inflation-adjusted, the cover level increases each year without medical underwriting.
- Policies are available to NZ residents: 10 – 70
- Life Cover sum insured available from $1,000 upwards, with no set maximum (subject to financial underwriting)
- Terminal Illness cover is included at no extra cost, where you can make an early claim if diagnosed with a terminal illness and given less than 12 months to live, extended to include a terminal prognosis where death is highly likely within 24 months
- Life Advantage Discount: Extra 10% discount for the duration of the policy for Life and Trauma cover for non-smokers aged 16 and over with a healthy BMI (18.50 to 26.99), and can be combined with multi-benefit discounts.
What other policies do Partners Life offer?
Partners Life Journey Plan product suite is one of the most flexible insurance offers on the market and includes health cover. Having more than one cover, you save up to 15% on your insurance premiums. Alongside Life Cover, you can add:
Trauma Cover pays a one-off tax-free payment if you are diagnosed with a covered medical condition, such as cancer, heart attack, stroke, or loss of limbs. The Moderate and Severe Trauma options cost less but have a higher claim threshold.
Total and Permanent Disability Cover: pays a lump sum if an illness or injury permanently prevents you from working in your own occupation.
Income Cover: pays you a monthly amount if illness, injury, or a mental health condition stops you working.
Mortgage & Income Cover: pays a portion of your income if you can’t work because of illness, injury or a mental health condition. Payments are not reduced by ACC and are tax-free so you get the full amount you have arranged.
Medical Cover: Covers the cost of private hospital treatment, surgery, specialists and tests as well as medicines that are not funded by Pharmac, so you are able to choose your care without having to use public waiting lists.
What is Partners Life's claims acceptance rate?
What are the benefits of taking out cover with Partners Life?
Partners Life offers personal cover through its Journey Plan, a modular life insurance product that lets you combine individual benefits into one policy. The Life Cover within a Journey Plan includes the following benefits:
Life Cover Benefit: pays your full sum insured as a single lump sum when you die.
Terminal Illness Benefit: pays your full sum insured early on diagnosis of a terminal illness, with the definition extended to a prognosis where death is highly likely within 24 months.
Bereavement Support Benefit: advances up to $15,000 (or the sum insured, if lower) to your family for immediate costs such as the funeral, ahead of the full claim.
Repatriation and Advice Benefits: cover the cost of bringing you home and reimburse legal and financial advice if you are diagnosed with a terminal illness or die while overseas.
Counselling Benefit: reimburses your family’s counselling costs once a claim has been paid.
Special Events Increase Benefit: lets you increase your cover with no further health information after a major life event, such as marriage, a new mortgage, the birth or adoption of a child, or a salary increase, and again on every fifth policy anniversary before age 60.
Conversion Benefit: lets clients under age 30 convert some or all of their Terminal Illness Cover to Life Cover, with no underwriting, when they buy a property, marry, or have a child.
Automatic Upgrades: add any future improvements to the Journey Plan wording to your existing policy at no extra cost.
What Recognition & Awards has Partners Life won?
Partners Life holds an A (Excellent) financial strength rating from A.M. Best, stable outlook, affirmed in February 2026 and backed by Dai-ichi Life Holdings.
Partners Life has built a strong record of independent recognition. Below are some of its most relevant markers of strength:
- A 5-star rating in the Lewers Insurance Benchmark Study every year since the company opened, the only life and health insurer in New Zealand to achieve this.
- ANZIIF Life Insurance Company of the Year, 2022 & 2025
- Partners Life won the Excellence in Wellbeing & Inclusion Award by the Financial Services Council for embedding diversity, equity, and care into its culture through initiatives like advanced parental leave and gender equity accreditation
- Best Design Awards & Global Advertising Accolades by D&AD Awards
What is the best life insurance policy?
The best life insurance policy for you will depend on your personal circumstances, what you’d like to cover and your budget.
Free life insurance calculator
Estimated cover to consider
A starting point for a conversation, not a final figure. The right amount depends on your full picture.
List of NZ life insurance companies
- AIA New Zealand: largest insurer; absorbed Sovereign (ASB’s former life brand) in 2018
- Partners Life
- Fidelity Life: NZ’s largest locally owned insurer; acquired Westpac Life in 2022
- Asteron Life: now owned by Resolution Life Australasia (acquisition completed), still trading under its own brand
- Chubb Life: formerly Cigna NZ, and before that OnePath (ANZ’s former life arm)
- nib NZ: health and life; acquired Kiwi Insurance (Kiwibank’s former brand) in 2022
- Resolution Life Australasia: in-force/closed books plus the Asteron business
- Southern Cross: entered the life market via Southern Cross Life Insurance
- Pinnacle Life: direct/online
- Momentum Life: direct
- Medical Assurance Society (MAS):
- PPS Mutual: mutual, aimed at professionals
- AA Life: distributed under the AA brand, sits within the Asteron/Suncorp lineage
- Greenwich Life: a brand of DPL Insurance (Turners Automotive Group), which also runs Autosure
Banks selling life insurance (now mostly distributors, not underwriters)
- ANZ: sells life cover; the old OnePath book went to Cigna, now Chubb Life
- ASB: sells life cover; its former Sovereign business is now part of AIA
- Westpac: still sells life products via its website, but policies are underwritten and issued by Fidelity Life
- Kiwibank: exited underwriting; refers customers to nib under a long-term partnership (after selling Kiwi Insurance to nib)
- BNZ: exited underwriting; directs customers to a specialist life insurer partner rather than managing the relationship itself
- The Co-operative Bank: offers life cover under the Co-op brand
- TSB: distributes life cover through a partner arrangement
How I found the best life insurance
I looked at five things to sort out the best life insurance in New Zealand from the ‘don’t waste your time’ types.
The process of purchasing a life insurance policy is not that different from purchasing a piece of property. In both instances, you are searching for something that is sure to be an integral element of your life well into the future. Not unlike the way you do your research and inspect a potential home before you buy, it is necessary to conduct a similar investigation when you are considering different life insurance policy options.
Heed the advice that follows below to make certain that any prospective life insurance company is on firm footing and likely to withstand the test of time.
After talking to industry experts and checking out the fine print I’ve narrowed the best life insurance companies in New Zealand down to five companies.
You might find it really difficult choosing between different life insurance companies thanks to all the jargon.
To make it easier for you I’ve waded through all the fine print and listed the best life insurance companies in New Zealand.
But remember New Zealand’s Best Life Insurance Policy is only as good, as the company that backs it.
- Credit Rating
Ability to Pay Claims - Premiums
Increasing Premiums vs Fixed Premiums - Underwriting
Who owns the policy the insurance company is selling? - Policy Wording
The best life insurance companies will “pass back” advantageous policy wording in the future. - Tailored Features & Benefits
Premium Holiday and Trauma Cover Buy-Back are probably the most popular optional benefits.
Proven Top Credit Strength
The last thing you need when life hands out some bad news is to hear that your insurance company isn’t able to pay out on your policy.
Financial strength ratings estimate the likelihood that an insurer will be able to meet its financial obligations, such as paying claims due to pre-mature death or terminal illness.
It’s a pretty reliable measure of whether or not a company is going to live longer than you will.
If you’re choosing between two companies, one rated AA- and one rated A+, either one is likely to be there when circumstances change.
But if you’re choosing between companies that are rated A+ and B++, financial strength may become a bigger factor in your decision. And more so post COVID-19.
The leading Life Insurance Companies in New Zealand, have a minimum credit rating from one of the following:
Claims and Approval process
The life insurance approval process varies between the providers. But a good rule of thumb is the more questions they ask upfront, the fewer questions they ask at claim time.
The leading insurance companies we’ve partnered with all have a thorough onboarding process. And it might feel like it’s a little harder to get cover with these companies.
However, I believe there is a direct link between a thorough upfront onboarding process and how easy it is to get claims paid.
The approval process can be as quick as 30 minutes to a couple of days or weeks.
The industry term for approval is underwriting. And an underwriter’s main role is to ensure that applicants are charged the appropriate premium (price) for the desired level of insurance coverage based on the assessed risk.
In some cases, where the value of the policy exceeds some financial thresholds or the applicant has reached a certain age, a medical examination by a nurse or GP is necessary. The exam typically consists of blood pressure readings, urine and blood samples, height and weight measurements and a medical questionnaire, which is all paid for by the insurer.
If you are willing to invest some time now in your life insurance policy and are willing to take a medical examination you will undoubtedly have the best cover in place.
Other providers embrace you now, ask fewer questions upfront, but when circumstances change and it’s time to claim start asking all the hard questions.
Guaranteed stepped to level conversion
Would you like to know how much your life insurance premiums will costs now and in 10 years?
Many families get a life insurance quote online and buy the cheapest life insurance policy.
Only to discover that the cheapest premiums have become too expensive after a couple of years.
So, how do I get the cheapest life insurance premiums?
Statistics tell us that most New Zealanders are forced to cancel the ‘cheapest’ life insurance policies when they need them the most – in their 50s and 60s. Because the premiums have become unaffordable.
Level premiums or fixed life insurance premiums, give you real peace of mind that your life insurance won’t be costing you anymore when you’re 64 than they do when you are 30.
The top insurers we have selected to work with, give you options with stepped and level premiums or combining both.
Without further health questions.
And this could be a good thing to do when your circumstances change, and you feel the need for more certainty and financial stability.
This means you can start with lower premiums that are more affordable for you now.
And when you reach a more stable period in life you can set your premium payments at a level you know you can afford for the rest of your life.
Policy Wording Pass Back
The best life insurance policies have a feature called “policy wording pass back“.
Any future advantageous policy upgrades, the best life insurance companies make to your policy will automatically be ‘passed back’ to you.
This means the wording that would apply would be the best wording for your situation (the new wording or the existing wording on your original policy).
At LifeCovered, we believe “policy wording pass back” is almost like a policy Warrant of Fitness.
Without “policy wording pass back”, your policy will not evolve with time and you may miss out.
Life Insurance Basics
How health, lifestyle, and smoking determine premium costs – how you can get the cheapest premiums and how life insurance can work as family protection insurance for future generations financial heritage.
- Life Insurance
Sometimes called death benefit - Accident Death Insurance
Pays a lump sum if you die in an accident - Trauma or Critical Illness
Pays a lump sum if you are diagnosed with a specific illness - Income Protection Insurance
Secures a monthly income if you cannot work due to illness or accident - Mortgage Protection
Pays a tax-free monthly benefit to cover your mortgage
Many New Zealanders mistakenly believe that the best life insurance deal is the policy with the cheapest premiums today.
Only to discover premiums increasing year after year and becoming more and more unaffordable.
Forcing many to cancel, when they need it.
The best life insurance deal is Life Insurance Premiums that don’t increase with age, because cover and premiums stay the same and are more affordable long-term, saving you a lot of money now and helping you to stay cashflow positive as you build your financial assets for retirements.
Pre-existing Conditions
A pre-existing health condition such as heart disease, stroke, weight, cholesterol, cancer, high blood pressure, diabetes, pre-diabetic, kidney and liver disease in itself might not be a reason for declined life insurance.
An experienced life insurance broker knows how each insurance company defines pre-existing conditions and how pre-existing health conditions are dealt with on a case-by-case basis.
It might be tempting not to disclose a medical or health condition. But honesty is the best policy.
Because life insurance is a legal document and you have a legal duty of disclosure.
An independent, trustworthy insurance broker has the know-how and experience to quote you the best life insurance deal from the leading life insurance companies in New Zealand.
Be open and honest to your life insurance broker, and in return, the broker works for you to find you the best policy that suits your needs and budget.
One of the main advantages of employer-provided life insurance is automatic acceptance, which often means full cover for pre-existing health conditions and discounted premiums.
What Types of Life Insurance Do Others Buy?
The ideal sort of life insurance for you is one that fits your budget, financial goals, and dependents’ needs.
What does life insurance exclude?
Life insurance policies generally exclude deaths from specific causes, such as suicide, war, criminal activity, and hazardous activities like skydiving.
It can also exclude deaths related to pre-existing medical conditions that were not disclosed to the insurance company at the time of policy purchase. Policies may also exclude coverage if the policyholder fails to pay premiums or if the policy has lapsed.
Therefore, it is important to review the terms and conditions of a life insurance policy to understand what is and is not covered.
Conclusion
Life insurance needs vary by individual. Finding the right policy shouldn’t be complicated. By comparing the market, we help you save time and money while matching you with suitable coverage at competitive rates.
Professional insurance brokers serve as your personal advocates. They search the market to find optimal policies and negotiate better premiums. Despite misconceptions about high commissions pushing expensive add-ons, brokers often secure better deals than direct purchases.
Insurance companies build broker fees into their standard premiums. This means you’ll pay the same amount whether you buy directly or work with a broker. The only difference? Direct purchases let insurance companies keep the built-in commission, while brokers earn it by serving your interests.
At LifeCovered, we’ve spent years mastering insurance policies and their complex details. Our expertise helps you navigate options and secure the best possible coverage. We understand the fine print that others miss. Through our connections and market knowledge, we often find lower premiums than what’s available to individual shoppers.
FAQ's
Who is the beneficiary?
The beneficiary is who or what you select to receive the money from your life insurance policy after you pass. This could be a person such as a family member or friend or an organization like a charity.
Who is the policyholder?
The policyholder is the person who purchases the life insurance policy. This may be the same person who is being insured, the beneficiary, or someone else like a spouse.
What is a death benefit?
The death benefit is the money paid to the beneficiary after the person insured has passed away. The death benefit is usually paid only when the policy is paid up.
Does life insurance pay for death by suicide?
Some companies will pay the death benefit for death by suicide. There are suicide clauses or waiting periods within a life insurance policy that generally expire 13 months after the policy was purchased.
If you or anyone you know is contemplating suicide, help is available. Call any time of day for free, confidential support from 1737, Need to talk, free call or text 1737 to talk to a trained counsellor.
How much life insurance do I need?
How much risk you are willing to accept and the budget you have to spend on insurance is personal.
Therefore, there is no magic formula for figuring out how much life insurance you need. Still, a good starting point is to determine your current and future financial obligations.
We use cash flow modelling to understand your current and future financial situation. The graphs give us a visual understanding and show how much money you could have in the future and whether you are on track to achieve your goals.
In brief, it allows us to ask the three big questions:
- What happens if …….?
- Will I be all right if……….?
- Can we afford to……….?
How does life insurance work?
Life insurance is a policy taken out on your life and paid out in the event of your death or terminal illness to protect those who depend on you financially.
In exchange for premium payments, an insurance company will pay a death benefit to your beneficiaries if you pass away while the policy is ‘in force.’ (‘In force’ means the policy is active and hasn’t been cancelled). The money is received tax-free, and beneficiaries can use it for whatever purpose.
Life insurance can be divided into two main types: level and stepped. Stepped premiums increase yearly; level policies don’t increase because of age and stay the same for 20 or 30 years.
What is life insurance?
Life Insurance is sometimes used as a general term for all the policies that life insurers offer.
To break it down, life insurance comes in many shapes and forms. And here are the most common ones:
Can I have more than one life insurance policies?
It is perfectly legal to have multiple life insurance policies. You simply have to be able to justify the amount of coverage you request.
Who has the best Life Insurance Policy?
No one size fits all is compared to the best life insurance policy. But the best life insurance policy in New Zealand is the one that is tailored purposefully with extra optional coverage and benefits if needed to build a financial protection plan for you and your family.
What else should I know when buying life insurance?
Some policies have nasty exclusions.
Some life insurance policies exclude certain conditions (e.g. cancers and heart conditions) that could leave you without support if you develop those conditions.
Other policies may require you to jump through hoops to prove your claim.
So make sure you check the fine print for exclusions.
The Best Life Insurance Companies in New Zealand have you covered for all cancers. And they accept claims for heart attacks as defined by the medical profession and not under the more narrow insurance profession definition.