Compare Life Insurance

Key features and benefits of life cover plans

• Life cover benefit: This is the amount paid to beneficiaries upon the insured’s death, helping secure their financial future, especially if the deceased is the primary income earner.
• Terminal diagnosis payment: Your life cover will be released in advance if you have a life expectancy of less than 12 months.
• Bereavement support benefit: A portion of the sum insured is paid immediately upon notification of the insured’s death, ensuring loved ones don’t have to worry about funeral expenses.
• Financial and legal advice benefit: Reimburses the actual cost of financial and legal consultations (subject to cost and timeframe restrictions).
• Special events increase benefit: Allows you to increase your sum insured (without further medical underwriting) after major events that might escalate financial pressure. These events could include marriage, death of a partner, divorce/legal separation, having a child, financially supporting a dependant child in secondary or tertiary education, a salary increase, mortgage increase, property purchase, or full-time family caregiving.
• Add-on benefits and other options: Life insurers offer optional benefits that can give you stronger financial protection. To know more, download our FREE life insurance comparison chart or talk to a Policywise adviser.

Add-on benefits

Most insurers offer optional benefits that can be added to your life cover plan. These may include:

• Terminal illness advance benefit: A portion of your benefit is paid in advance if you are diagnosed with a covered condition, such as non-small cell lung cancer (stage 4), exocrine pancreatic cancer (stage 3 or 4), or motor neurone disease.
• Life income cover: Some life insurers - like Chubb - let you choose between receiving a lump sum amount or a monthly payment.
• Suspension of cover: Allows you to suspend your premium and cover for a limited period if you go through financial difficulties, such as losing a job, bankruptcy, taking leave without pay, or becoming a full-time caregiver.
• Specific injury support: This benefit pays a lump sum if the insured suffers from a policy-defined injury. These injuries may include fractures, loss of limbs, paralysis, burns, and blindness, among others.
• Free kids cover: Several policies pay a benefit if the insured’s child becomes terminally ill or suffers a covered condition.
• Waiver of premium: Some life insurers waive premiums if the insured becomes disabled, suffers an illness or injury that impacts their ability to work full-time, or goes through financial difficulties.

The benefits listed above are by no means complete. To learn more about life cover, or consider other options, like family life insurance, joint life cover, or self-employed life insurance, schedule a callback with a Policywise adviser.

How much life cover do I need?

When determining how much life insurance you need, consider your:

• income
• estimated expenses in the next several years
• financial obligations; debts, mortgage, rent, and childcare
• savings
• age
• future plans, such as your children’s tertiary education.

Our Policywise advisers can help you calculate the right amount and compare life insurance quotes from New Zealand’s best life insurers. While no one wants to think of worst-case scenarios, knowing your family is adequately provided for can give you immeasurable peace of mind.

How much does life insurance cost?

Life insurance costs vary depending on the insured’s:

• cover amount (sum insured)
• type of term life insurance (fixed/level or stepped premiums)
• age
• gender
• medical history
• lifestyle (including smoking) and hobbies.

A Policywise adviser can help you choose between fixed or stepped premiums, identify the right cover amount, and select a product that fits your budget and overall financial plan.

Sample Life Insurance Quotes from NZ’s Best Insurers     

How can I save money on my life insurance premium?

There are ways you can lower your life insurance premium:

• Work with insurance advisers who can pull life policy quotes from multiple insurers. At Policywise, we help clients compare several plans and quotes for the best life insurance cover at the lowest price.
• Take out a life insurance policy while you’re young and physically fit.
• Maintain a healthy lifestyle and keep within the recommended healthy weight range for your body type.
• Stay nicotine-free and avoid heavy drinking.
• Don’t choose a level of life cover that’s too much for what you or your family may need.
• Opt out of add-on benefits if you don’t need them.
• If you’re young and healthy and looking for short-term cover, consider renewable term life insurance.
• Pick a premium type (stepped or level) that fits your financial plans.

This is not an exhaustive list. A Policywise adviser can discuss other ways to reduce your premium based on your specific circumstances.

Will my life insurance premium increase yearly?

Stepped premiums are cheaper at the start and increase each year. The cost is unlikely to lessen unless your circumstances change, such as if you switch to a less hazardous occupation. Some people prefer this option as it is more affordable while they’re young and starting their careers or families. However, stepped premiums can become costly as you get older.

Level premiums won’t increase with your age, but may rise due to inflation or changes in your lifestyle – for example, if you start smoking. You pay a higher premium price at first but level premiums may cost you less in the long term than a stepped insurance policy.

Renewable term life insurance renews after a set number of years, without requiring you to undergo a new medical exam. If you become severely ill or uninsurable within the set period, you can still renew your policy. Keep in mind, though, that your premium will increase when you renew.

The right premium type for you may also depend on other factors, such as your age and how long you want to keep your life insurance policy. Book a call with a Policywise adviser to understand which option is better for your circumstances and how you can save on premium costs.

Comparing the best life insurance companies in New Zealand

Policywise only offers plans from trusted life insurers with high financial strength ratings, which ensure they have the capacity to pay out on your claim when you need it most.