Fidelity Life Insurance NZ: A comprehensive review of Fidelity’s Life Cover

Fidelity Life Insurance - a brief company overview

“50 years of looking after New Zealanders.”

Throughout the last half-century, the words honesty and reliability have become almost synonymous with this name: Fidelity Life Insurance. The following is an overview of why.

• Founded in 1973 by Gordon and Shirley Watson, Fidelity Life has become an enduring presence within New Zealand's insurance landscape. With a dedicated team of over 400 professionals, Fidelity Life has steadfastly protected the lives and futures of more than 375,000 Kiwis and paid out more than $1.5B in claims.
• The company’s dedication to its customers has not gone unnoticed. From 2017 to 2019, Fidelity Life was awarded Life Insurance Company of the Year by the ANZIIF (Australian and New Zealand Institute of Insurance and Finance).
• In the last financial year (July 2022 to June 2023), the company’s total paid-out claims reached $149.2 million. Of this amount, $77.4 million went to life cover claims. 
  • The youngest claimant was 25 years old, while the oldest was 100 years old.
  • Life cover claims were related to cancer (32%), cardiovascular conditions (23%), and respiratory conditions (14%), among others.
• Today, Fidelity Life's commitment to New Zealanders remains as resolute as ever. Supported by local shareholders, including the NZ Super Fund and Ngāi Tahu Holdings, the company maintains a multi-generational investment horizon. This ensures that decisions are crafted by New Zealanders, for New Zealanders, across generations.

Policywise works with the full suite of Fidelity Life products, including life, trauma, income protection, total and permanent disablement, mortgage protection, and group insurance. In this Fidelity Life Insurance review, we’ll look at their Life Cover plan in detail.

What is life insurance?

Life insurance provides a lump sum payout on the death of the life assured. It is paid to the beneficiaries listed under the policy and provides a safety net that helps dependants pay for funeral costs and keep up with living expenses, children’s education, debts, rent/mortgage, and other financial obligations after losing an income earner in the family. 

Here’s how life insurance works: You take out a policy through an insurance company and pay a cost, called a premium, on a regular basis. In return, if you pass away, your insurance company will pay your policy beneficiaries the full sum, providing them with a substantial financial cushion. It's like saying, "Even if I'm not around, I've got your back." 

Some life insurance policies even offer an advanced payout if the insured is diagnosed with a terminal illness or given less than a year to live. This amount can be used by the insured and their families to make the most of their limited time together. It also eases the financial stress on families, allowing them to focus on caring for and spending time with their terminally ill loved one.

If you have any questions or want help finding the right policy, book a callback with a Policywise adviser; it's fast and free.

In the following sections, we'll explore why you should consider taking out insurance with Fidelity Life Insurance New Zealand.

Fidelity Life’s Life Cover policy: Features and benefits

Other products offered by Fidelity Life

Fidelity Life offers more than just life insurance, so you and your family can rest assured that other requirements will be met as well. An outline of additional insurance plans offered by Fidelity Life follows:

• Fidelity Life Income Protection Cover: Ensures that you continue to receive a regular income in case you are unable to work due to illness or injury, helping maintain your financial stability and cover everyday expenses.
• Fidelity Life Monthly Mortgage Repayment Cover: Helps meet your monthly mortgage payments if you become disabled, critically ill, or pass away, easing the financial burden on your family so they can remain in their home.
• Fidelity Life Total and Permanent Disability Cover: In the unfortunate event of a total and permanent disability, this insurance provides a lump sum payment, offering financial support to help you adapt to a different way of life.
• Fidelity Life Survivor's Income Cover: Offers ongoing financial support to your partner or dependants if you pass away, providing them with regular income to cover daily expenses and maintain quality of life.
• Fidelity Life Trauma Cover: Provides a lump sum payment upon the diagnosis of a critical illness, such as cancer, heart attack, or stroke, offering financial assistance towards medical bills, and treatment costs, including non-Pharmac drugs and lifestyle adjustments, during recovery.
• Fidelity Life Trauma Multi Cover: Extends the protection of Trauma Cover to include multiple family members under a single policy. 

• Fidelity Life Business Cover: Covers the vital expenses of running your business if you or a key staff member are unable to work due to a policy-defined illness, injury, disability, or death. 

• Fidelity Life Group Cover: Covers your employees against the risk of illness, accidental death, permanent disability, loss of income (up to 75%), or injury with either a lump sum payment or monthly benefit.

Please note: Terms and conditions, as well as exclusions, apply to all Fidelity Life products. It's important to review your policy carefully to understand the specific terms of cover, benefits, and any limitations. This ensures that you have a clear understanding of the protection provided by each product. If you have any questions or want help finding the right policy, book a callback with a Policywise adviser; it's fast and free.

Do you need Fidelity Life Insurance in New Zealand?

Life Insurance provides a lump sum payment to policy beneficiaries upon your death. This amount allows your family to cover immediate expenses, funeral costs, mortgages, rent, loans, credit card balances, and ongoing living costs.

For families that depend on your income, life insurance serves as a substitute for lost earnings, helping loved ones maintain their standard of living and secure their future financial needs. It can also support long-term monetary plans, like funding your children's education or contributing towards their goals and aspirations.

Here's why life insurance matters:

• Financial security: A New Zealander dies of coronary heart disease every 90 minutes. Life insurance provides a strong financial backup and peace of mind for your family on the death of the life assured.
• Debt protection: Home loan rates in New Zealand have been volatile since Covid-19 struck in 2020, rising from lows near 2% to more than 7%. Fidelity’s Life Cover or Monthly Mortgage Repayment Cover can help cover debts, rents, mortgages, and loans, relieving your loved ones from the burden.

• Income replacement: The cost of living in New Zealand rose by 7.0% in the 12 months to the December 2023 quarter. Fidelity’s Income Protection Cover or TPD Cover can help replace the financial input of the life assured, enabling your family to maintain a similar lifestyle to that if the life assured had continued working until retirement. 
• Education support: The costs of educating your child at tertiary level in New Zealand can range from $20,000 to $40,000+ per year. Fidelity’s Life Cover ensures your children's education remains uninterrupted, no matter what.
• Funeral costs: The average cost of a funeral in New Zealand is $10,000, yet only 5% of Kiwis have pre-planned theirs. Fidelity’s Life Cover eases the financial strain by covering funeral expenses.
• Peace of mind: Knowing your loved ones are financially secure and can maintain their lifestyle after you're gone or unable to support them anymore offers invaluable peace of mind.

Policywise: your partner in making wise insurance decisions

Policywise is a 100% free service which tells you which health, life, and disability insurance provider best fits your needs. We offer fast, comprehensive, and easy-to-understand comparisons of all leading providers, and a simple summary clearly recommending which insurer is best for your situation.

Not all insurance policies are the same. Policywise can help you sort out the duds, avoid the lemons, understand the fine print and exclusions, and get the right insurance for you and your family.

We make the important decision of where to buy your insurance super easy. We’ll answer your questions, provide experienced advice, quotes, and comparisons, and manage all the back and forth throughout the application process. Taking out your cover through us means you'll have our lifetime support and claims advocacy, and we'll help you negotiate a positive outcome at claim time. We can also take care of lodging any claims on your behalf and back you up if the going gets tough.

Check out the reviews on our homepage for how other New Zealanders have found our service, because now is the time to get your life insurance sorted. Give your family or someone you love the most outstanding financial support possible. Book a 5-minute callback with Policywise today; our service is fast and free.erienced advice, quotes, and comparisons, and manage all the back and forth throughout the application process. Taking out your cover through us means you'll have our lifetime support and claims advocacy, and we'll help you negotiate a positive outcome at claim time. We can also take care of lodging any claims on your behalf and back you up if the going gets tough.

Disclaimer: This article is for general information only. Nothing in this blog or on this website is intended as medical, dietary, or financial advice. Although Policywise aims to update our content regularly, you are advised to consult a financial adviser, health professional, or an appropriate specialist before acting on any information herein. They can factor in your personal circumstances or preferences and help guide your decision-making process.