Personal protection
Life insurance, structured around the people who depend on you.
If something happens to you, life insurance is the lump sum that clears the mortgage, replaces income, and keeps the household running. We compare cover across every major NZ insurer and write a recommendation in plain English.
Who it’s for
This page is for you if…
- Parents with dependent children, especially with a mortgage
- Couples where one income covers most of the bills
- Business owners with debt or shareholder agreements
- Anyone who’s the primary income earner for a household
What it does
How the cover actually works.
- A tax-free lump sum paid to your nominated beneficiary or estate on death
- Most policies pay early on diagnosis of a terminal illness (life expectancy under 12 months)
- Cover stays in place as long as premiums are paid. choose level premiums to lock in cost
- Sum insured chosen by you, indexed to inflation if you elect that option
NZ context
What you should know about this in New Zealand.
Only ~35% of NZ adults hold any life cover
The Financial Services Council’s Feb 2026 State of the Sector Report shows roughly 65% of New Zealand adults have no life insurance. one of the lowest take-up rates in the OECD.
Work-cover usually isn’t enough
Group life cover through an employer typically pays 2× salary and ends when you leave. For most families with a mortgage, that’s a fraction of what’s needed.
Tax-free in NZ
Life insurance proceeds paid to a beneficiary are not income. they don’t hit your IR3 and they don’t affect KiwiSaver.
Common myths
Three things we hear that aren’t quite right.
“I’m young and healthy. I don’t need it yet.”
Premiums are set at entry age. Locking cover in your 20s/30s costs a fraction of waiting until your 40s, and your health is rarely cleaner than it is right now.
“My KiwiSaver / savings will cover it.”
Average NZ KiwiSaver balance is around $36k. That doesn’t clear a mortgage or replace 15 years of income.
“Stepped premiums are cheaper.”
Stepped premiums start lower but rise sharply with age. Level premiums are higher upfront but usually cheaper over the full life of the policy.
What an adviser does
Why this is hard to do on your own.
- Calculate cover from your actual debts, dependants, and income replacement need. not a generic online sum.
- Compare policy wording across every major NZ insurer (Partners Life, AIA, Fidelity, Asteron, Chubb).
- Structure stepped vs. level premiums for your specific budget and time horizon.
- Run the claim when it happens. we’re the point of contact, not you.