Compare Life Insurance in New Zealand

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22 live offers compared from 13 providers, from NZ$28 /month. Updated daily.

What is life insurance in New Zealand?

Life insurance pays a lump sum to your family or estate if you die, helping cover a mortgage, replace lost income, raise children or settle debts. In New Zealand it is often bought alongside related covers — trauma (critical illness), total and permanent disability (TPD) and income protection — that pay out while you are still living but unable to earn. Because ACC only covers accident-related loss of earnings, not illness, life and living-benefit insurance fills an important gap for families who depend on one or two incomes.

How the New Zealand market works

Life and living-benefit cover is provided by specialist life insurers — AIA (which absorbed Sovereign and AMP's business), Partners Life, Fidelity Life, Asteron Life and Chubb Life (formerly Cigna), among others — and is often sold through financial advisers rather than directly. Policies can be level (premium fixed for a term) or stepped (premium rises with age, cheaper early on). New Zealanders commonly bundle life cover with trauma, TPD and income protection into a single package tailored to their mortgage, income and dependants.

Benefits

Family financial security — A lump sum lets your family clear the mortgage and maintain their standard of living.

Income replacement — Paired income protection covers a portion of your salary if illness or injury stops you working.

Critical-illness cover — Trauma cover pays out on serious diagnoses like cancer, heart attack or stroke.

Flexible structuring — Cover can be tailored and bundled to match your debts, dependants and life stage.

How to choose

Start by working out how much cover you actually need — typically enough to repay the mortgage, clear debts and replace income for your dependants' needs. Decide between level and stepped premiums: stepped is cheaper now but rises steeply with age, while level costs more early but is more predictable long term. Consider whether to add trauma, TPD and income protection. Compare insurers on claims-paying reputation and policy definitions (how "trauma" or "disability" is defined matters greatly), and consider using a licensed adviser given the complexity.

Leading providers in New Zealand

AIA New Zealand is the largest life insurer after absorbing Sovereign and AMP's life book. Partners Life is a major adviser-focused insurer known for comprehensive cover. Fidelity Life is a long-established New Zealand-owned insurer, Asteron Life (part of Suncorp) is another significant player, and Chubb Life (formerly Cigna) rounds out the market. Premiums depend heavily on age, health, smoking status, cover amount and type — monthly costs in the market range from around NZ$28 for modest cover on a young non-smoker up to well over NZ 00 for larger or older-life policies.

What it costs

Premiums are individually rated on age, gender, health, smoking status, occupation and the amount and type of cover. Monthly costs commonly range from about NZ$28 for a young, healthy non-smoker with modest life cover up to NZ 18 or more for higher sums insured, older applicants or bundled trauma and income protection. Stepped premiums start lower but rise each year with age; level premiums cost more initially but stay flatter. Adding living benefits increases the premium but broadens protection to illness and disability, not just death.

Protections and regulation

Life insurers are licensed and prudentially supervised by the Reserve Bank of New Zealand under the Insurance (Prudential Supervision) Act. Advisers who recommend life insurance must operate under the financial-advice regime overseen by the Financial Markets Authority, holding them to duties of competence and putting your interests first. Insurers must comply with the Fair Trading Act and the Financial Markets Conduct Act's fair-conduct regime for how policies are sold and claims handled, and belong to a dispute-resolution scheme such as the Insurance & Financial Services Ombudsman.

Common questions

How much life cover do I need? — Enough to repay your mortgage and debts and support your dependants; a needs analysis or adviser can quantify it.

Level or stepped premiums? — Stepped is cheaper now but rises with age; level costs more early but is steadier over the long term.

Should I add income protection? — It's valuable if your household relies on your earnings, since ACC covers accidents but not illness-related loss of income.

Life Insurance in New Zealand — FAQ