Best life insurance in NZ: how to compare cover properly
There is no single best life insurance company in New Zealand. There is only the insurer that prices your age, health and occupation best. This guide explains what life cover actually does, how much you are likely to need, what moves your premium, and how to compare the main NZ insurers without wasting a weekend on it.
Last updated August 2026. General information only, not financial advice.
Short answer
The best life insurance in New Zealand is the policy from the insurer that prices your age, health, occupation and smoking status best, for a sum insured that clears your debt and replaces a few years of income. The main NZ life insurers are AIA, Partners Life, Fidelity Life, Asteron Life and Chubb Life. Because each one underwrites and prices differently, comparing several on your own details matters more than picking a brand, and a licensed adviser does that comparison free because the insurer pays them.
- No single insurer is cheapest for everyone. Price depends on your details.
- Size cover as: debt + a few years of income + final costs, less what you already have.
- Age and smoking status move the premium more than anything else.
- Stepped premiums start cheaper and rise. Level premiums cost more early, less over a long hold.
- Never cancel an existing policy before the replacement is accepted and in force.
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What life insurance actually covers
Life insurance pays a lump sum to the people you nominate if you die. In New Zealand most policies also pay early if you are diagnosed as terminally ill. It is not savings and it has no cash value. You are buying certainty that your mortgage, household bills and family plans do not fall over if your income disappears.
Life cover is often confused with the covers sold alongside it. Trauma cover pays on diagnosis of a listed serious illness. Income protection replaces part of your income if you cannot work. Total and permanent disablement cover pays if you can never work again. They solve different problems, and buying the wrong one is a common and expensive mistake.
How much cover do you need
A practical way to size it is to add up what would need to be paid for, then subtract what already exists:
| Mortgage balance | The single biggest reason most Kiwis take out life cover |
| Other debt | Car loans, credit cards, personal loans, business guarantees |
| Income replacement | A few years of your income so your family can adjust |
| Final costs | Funeral, estate and legal costs |
| Future costs | Childcare, schooling, or a partner reducing work hours |
| Less: what you already have | Savings, existing policies, employer or scheme cover |
There is no rule that fits everyone. A single person with no dependants and no mortgage may need very little. A couple with a mortgage and young children usually needs a lot more than they assume.
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What drives your premium
- Age. The largest single factor. Cover bought at 35 is priced very differently to the same cover bought at 55.
- Smoking. Smokers and vapers are typically rated far higher. Most insurers require 12 months smoke free before you can be re-rated.
- Cover amount. Priced per dollar of cover, so the sum insured moves the premium directly.
- Health history. Existing conditions can lead to a loading, an exclusion, or standard terms depending on the insurer.
- Occupation. Manual and high risk occupations are rated differently, and it matters far more for income and disability cover than for life cover.
- Stepped vs level. Stepped starts cheaper and climbs with age. Level costs more upfront and is usually cheaper across a long hold.
How much does life insurance cost in NZ
There is no standard price. Life insurance in New Zealand is individually underwritten, so the premium you are offered is calculated from your own age, health history, smoking status, occupation, the sum insured and the premium structure you pick. Two 45 year olds buying the same amount of cover can be quoted very different amounts, and the same person can be quoted very different amounts by different insurers.
If you are looking for low cost life insurance, the three levers that actually move the number are the sum insured, the premium structure, and being a non-smoker. Buying earlier also locks in a lower age at entry. Be wary of chasing the cheapest quote on its own, because a policy that excludes the thing most likely to affect you is not cheap, it is just smaller.
The main life insurers in New Zealand
Most life cover written in New Zealand sits with a small group of specialist insurers. The names you are most likely to be quoted are:
- AIA
- Partners Life
- Fidelity Life
- Asteron Life
- Chubb Life
- Cigna / Chubb legacy books
They all sell life cover. Where they differ is underwriting appetite, policy wording, how they treat specific medical histories, and price at your particular age band. That is why ranking them into a single best list is misleading. The insurer that wins on price for one person routinely loses for the next.
How to compare life insurance quotes
When you put quotes side by side, hold these constant or you are comparing nothing:
- The same sum insured on every quote
- The same premium structure, stepped or level, and the same level term
- The same optional benefits and any inflation indexation setting
- Whether the premium quoted includes policy fees
- Any exclusions or loadings applied after underwriting, not just the initial quote
The important number is not the quoted premium. It is the premium you are actually offered once the insurer has assessed your health, which can differ from the quote.
Term life, funeral cover and other policy types
Most life cover sold in New Zealand is yearly renewable term life, held to a set age such as 100 or until you cancel it. These are the covers people most often confuse with it:
| Cover | What it pays for |
|---|---|
| Term life | A lump sum to your family if you die or are diagnosed as terminally ill |
| Funeral cover | A small, fast lump sum for funeral costs only, usually well under full life cover |
| Trauma / critical illness | A lump sum on diagnosis of a listed serious illness, whether or not you survive it |
| Total and permanent disablement | A lump sum if you can never work again |
| Income protection | A monthly payment replacing part of your income while you cannot work |
| Mortgage repayment cover | A monthly payment sized to keep the mortgage serviced |
Funeral cover is not a substitute for life cover. It is designed to settle immediate costs, not to clear a mortgage or replace an income. Cover Easy focuses on life cover.
Life insurance for seniors in NZ
Cover is still available later in life, but two things change. Premiums rise sharply with age, and most insurers stop accepting new life applications somewhere around age 70. Underwriting also gets more detailed, so medical history carries more weight.
If you are over 60 and the goal is simply to leave enough to settle final costs rather than replace an income, a smaller sum insured usually makes far more sense than a large policy you may not keep. If you already hold a policy from years ago, review it before you replace it, because your original underwriting terms may be better than anything available now.
Already have cover? Read this first
Older policies are worth reviewing, because premiums and features change and many people are still paying for cover structured around a life stage they left years ago. But there is one rule that matters more than price:
Pre-existing conditions
A medical history does not automatically mean you cannot get life cover. Insurers assess the same condition differently, and outcomes range from standard terms, to a premium loading, to a specific exclusion. Because appetite varies, this is the situation where working with an adviser who knows which insurer to approach makes the biggest difference. Always disclose fully. Non-disclosure is the most common reason a claim is declined.
Five mistakes that cost Kiwis money
- 1Buying the cover that was easiest to buy, usually whatever was bundled at the bank, instead of the cover that was priced best.
- 2Insuring the mortgage but not the income that services it.
- 3Never reviewing. Cover set up before children, a mortgage or a business is rarely still the right shape.
- 4Cancelling old cover before new cover is confirmed.
- 5Under-disclosing health history to get a lower premium, which puts a future claim at risk.
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Frequently asked questions
What is the best life insurance company in New Zealand?
There is no single best insurer for everyone. The right insurer depends on your age, health history, occupation, smoking status and how much cover you need. An insurer that is competitive for a healthy 30 year old is often not the cheapest for a 55 year old with a medical history, so the best approach is to compare several insurers on your own details.
How much life insurance do I need in NZ?
A common starting point is enough to clear your mortgage and other debt, plus a few years of your household income so your family has breathing room. Add funeral costs and any future costs you want covered, such as children's schooling, then subtract savings and any cover you already hold through KiwiSaver related schemes or an employer.
How much does life insurance cost in New Zealand?
Premiums are individually priced. The main drivers are your age, whether you smoke, the amount of cover, your health history, your occupation and whether you choose level or stepped premiums. Two people the same age can pay very different amounts, which is why quotes are always personalised.
What is the difference between stepped and level premiums?
Stepped premiums start lower and rise each year as you get older. Level premiums are set based on your age at the start and stay flatter for a fixed term, so they cost more early on but usually less over a long period. Level suits people who expect to hold cover for many years.
Can I get life insurance with a pre-existing condition?
Often yes. Insurers assess conditions differently. Some will offer standard terms, others may apply an exclusion or a loading on the premium. Because appetite varies by insurer, people with a medical history usually benefit most from having an adviser approach the right insurers.
Does it cost anything to use an adviser?
No. Licensed New Zealand insurance advisers are paid by the insurer when a policy is placed, so their advice and comparison work is free to you.
Should I switch my existing life insurance policy?
Sometimes, but never cancel existing cover before new cover is confirmed and accepted. Switching can lower your premium, but a newer policy may re-assess your health, so any condition that developed since your original policy started could be treated differently.
What is the cheapest life insurance in New Zealand?
There is no fixed cheapest provider, because every insurer prices your age, health, occupation and smoking status differently. The reliable ways to reduce the premium are to insure only the amount you actually need, choose the premium structure that suits how long you will hold the policy, be a non-smoker, and compare several insurers rather than accepting the first quote.
At what age can you no longer get life insurance in NZ?
Most New Zealand insurers stop accepting new life insurance applications somewhere around age 70, and premiums rise steeply through your sixties. Existing policies can usually be held well beyond the age at which a new one could be started.
Is funeral insurance the same as life insurance?
No. Funeral cover pays a small, fast lump sum intended to settle funeral and immediate costs. Life insurance pays a much larger sum designed to clear debt such as a mortgage and replace income for your family. They solve different problems and funeral cover is not a substitute for life cover.
Is life insurance worth it in New Zealand?
It depends on who relies on your income. If you have a mortgage, dependants or business debt, life cover is what stops those obligations landing on your family. If nobody depends on you financially and you have no debt, the case for a large policy is much weaker.
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