Protect the people who rely on you
Life insurance in NZ pays your family a tax-free lump sum if you pass away or are diagnosed with a terminal illness – clearing the mortgage, replacing your income and giving them room to grieve.
- Partners Life
- AIA
- Fidelity Life
- Chubb Life
- Asteron Life
- nib
What life insurance actually pays for.
Life insurance in New Zealand pays a tax-free lump sum to your nominated beneficiaries – usually your partner, family or estate – if you die. Most quality NZ policies also pay the sum insured early if you're diagnosed with a terminal illness and expected to pass away within the next 12 months, so the money can be used while you're still here.
It's not investment, not savings, and not a KiwiSaver alternative. It's protection – converting a small monthly premium into a large sum exactly when your family needs it most.
- Clearing the mortgage in full
- Everyday living costs for years, not weeks
- Childcare, schooling and university
- Funeral, legal and estate costs
- Personal loans, credit cards and car finance
- Time off work for grieving family
- A shareholder buy-out in the business
- A legacy or gift to people who matter
Who typically needs life insurance in NZ.
Life insurance is about the people and commitments that depend on your income continuing. Most New Zealanders who tick one of these boxes benefit from at least some cover.
You have a mortgage
Life cover can clear the home loan so your family isn't forced to sell or refinance in the worst possible moment.
You have children or dependants
A lump sum keeps day-to-day life running – childcare, schooling, groceries, transport – for years, not weeks.
Your income supports someone
If a partner, parent or sibling depends on what you earn, life insurance replaces that support if you're not there.
You own a business
Cover funds business continuity, a shareholder buy-out or paying down debt personally guaranteed by you.
You've made long-term plans
University fees, a home deposit for the kids, or clearing debts you don't want to leave behind.
You want peace of mind
Even without dependants, life insurance can cover funeral costs, tax on assets or a legacy for people who matter.
How much life insurance do you actually need?
There's no single number – but there is a structured way to work it out. We start with the debts you'd want cleared, add the income you'd want replaced, layer in one-off costs, then subtract cover you already hold (e.g. through KiwiSaver, work or existing policies).
- 01Clear the mortgage
Enough to pay off the balance of your home loan so the family home stays with your family.
- 02Replace 5–10 years of income
A common rule of thumb: 5 to 10 times your annual income, adjusted for other cover you hold.
- 03Cover the kids until independence
Rough budget for schooling, childcare and living costs until your youngest is around 18–21.
- 04Pay off other debts
Personal loans, credit cards, car finance and any business borrowings you've guaranteed.
- 05Add a buffer for one-offs
Funeral costs, professional advice at claim time and a cash reserve while the family adjusts.
How life insurance policies are structured in NZ.
Getting the structure right often matters more than which insurer you pick. The same sum insured can cost dramatically different amounts over 20 years depending on how the premium and benefit are set up.
Rate-for-age (stepped) premiums
Premiums start lower and step up each year as you age. Cheapest early on – expensive later in life. Best if you only need cover for a defined window (e.g. until the mortgage is paid off).
Level premiums
Premiums are locked at a higher starting rate but stay flat for a chosen term (e.g. to age 65 or 70). Almost always cheaper in total if you'll keep the cover long term.
Indexed sum insured
Your cover amount automatically increases each year in line with inflation, so $500,000 today keeps up with what it actually buys in 15 years' time.
Early terminal illness benefit
Most quality NZ policies pay the sum insured early if you're diagnosed with a terminal illness (typically 12-month prognosis), while you're still here to use it.
What affects your life insurance premium.
NZ life insurance premiums are underwritten individually – no two quotes look exactly alike. Six factors do most of the work.
Age
The younger you lock in cover, the lower the premium – and the more years you're insured for.
Health & family history
Existing conditions, BMI, blood pressure and close family history of heart disease or cancer are all considered.
Smoker status
Non-smoker rates are meaningfully cheaper. You can usually switch to non-smoker rates after 12 months smoke-free.
Occupation & pastimes
Higher-risk jobs and hobbies (aviation, motorsport, extreme sports) can affect premium or exclusions.
Cover amount & structure
Sum insured, whether premiums are level or rate-for-age, and any indexing all move the monthly cost.
Optional benefits
Add-ons like early terminal illness, funeral advance, future insurability and children's trauma affect price.
We compare New Zealand's leading life insurers.
Because we're independent advisers – not tied to one insurer – we can compare wording, underwriting appetite, price and claims track record across the major NZ life providers, then recommend what actually suits you.
A disclosure statement is available on request and free of charge.
- Partners Life
- AIA
- Fidelity Life
- Chubb Life
- Asteron Life
- nib
Adviser-led, no-cost, no pressure.
Our advisers are paid by the insurers when a policy is placed, so there's no cost to you for the advice, the comparison, or ongoing support at claim time.
- 01
Free discovery call
A no-cost, no-obligation chat to understand your family, health, mortgage, income and long-term plans.
- 02
Needs analysis
We work out the right sum insured, structure and optional benefits – grounded in numbers, not a sales script.
- 03
Compare NZ insurers
We compare quotes, wordings, underwriting and claims track record across the major life insurers we work with.
- 04
Application & claims support
We manage the underwriting paperwork upfront and stand alongside your family at claim time.
Life insurance rarely stands alone.
Life cover pays out on death or terminal illness. Most families also want protection for serious illness, permanent disability and lost income while they're still alive – which is where these covers come in.
Trauma Insurance
A lump sum on diagnosis of a serious illness like cancer, heart attack or stroke.
Learn moreTPD Insurance
Cover if illness or injury means you can never return to work.
Learn moreIncome Protection
A monthly benefit that replaces part of your income while you can't earn.
Learn moreMortgage Protection
Monthly cover sized specifically around your home loan repayments.
Learn moreLife insurance NZ, common questions.
Quick answers to the questions New Zealanders ask us most often. Something not covered? Just call or drop us a note.
How much does life insurance cost in New Zealand?
As a rough guide, a healthy 35-year-old non-smoker in NZ can often get $500,000 of life cover for around $20–$35 a month, rising with age, smoking status and any medical loadings. The best way to see real numbers is to run our indicative Marble Life Quote or speak to an adviser – final pricing depends on underwriting.
How much life insurance do I need?
A common starting point is enough to clear your mortgage and debts, plus 5–10 times your annual income, plus a buffer for children until they're independent. Because every family looks different, a Marble Life adviser will walk you through a tailored needs analysis before recommending a sum insured.
Is life insurance worth it in NZ?
If someone else relies on your income – a partner, children, ageing parents, business partners or a bank you owe money to – life insurance is one of the cheapest ways to protect them. If you have no dependants and no debt, the value is lower, though many people still hold a small policy for funeral and estate costs.
Is life insurance tax deductible in New Zealand?
Premiums on personal life insurance policies are generally not tax deductible in NZ, and the lump sum paid out on death is generally tax-free to the beneficiary. Business-owned policies (e.g. key person or shareholder cover) can have different treatment – we'll flag this and recommend you confirm it with your accountant.
What's the difference between level and rate-for-age (stepped) premiums?
Rate-for-age premiums start cheap and rise each year with your age. Level premiums are locked in higher at the start but stay flat, and typically cost significantly less in total over 15+ years. If you plan to hold cover long term, level premiums are almost always the better financial choice.
Can I have more than one life insurance policy?
Yes – you can hold multiple life insurance policies in NZ, and each will pay out independently on a valid claim. That said, it's usually more efficient (and cheaper) to consolidate cover under one policy with the right structure than to stack several policies.
Do I have to have a medical to get life insurance?
Not always. Many applications are decided on a health questionnaire, GP notes and blood tests. A full medical is only requested for higher sums insured or specific health disclosures. Your adviser will tell you upfront exactly what the insurer will need.
What happens if I already have life insurance through KiwiSaver or my employer?
Group life cover through work is a great baseline but usually ends when you leave the employer, and the sum insured is often smaller than a family actually needs. We factor in what you already have and build the personal cover around the gap.
Sort the life insurance question once – properly.
Book a free 20-minute Protection Review with a Marble Life adviser. We'll walk through your situation, run the numbers, and tell you honestly whether cover is worth it and what it should look like.