Ever caught yourself wondering why your mate pays so much less for life insurance than you do? Or perhaps you're considering life insurance for the first time and want to know what to budget for? You're not alone – understanding life insurance costs in New Zealand can feel like solving a puzzle, but it doesn’t have to be that way.
The real cost of being underinsured in NZ
Here’s a sobering fact: 59% of Kiwis do not have life insurance, according to a Financial Services Council report. This leaves a significant portion of New Zealand families financially vulnerable if the unexpected happens.
Consider this hypothetical scenario: Emma, a 35-year-old mother of two, had $360,000 in life insurance coverage. When she unexpectedly passed away, her family faced significant financial challenges. Their mortgage required $500,000, and there were ongoing costs for childcare, education, and daily living. Her partner was forced to sell their family home just to make ends meet.
This story reflects the reality for many Kiwis. While life insurance might seem like just another expense, the real question is: can your family afford not to have it?
Breaking down your premium: what influences the cost?
1. Age: the earlier, the better
Getting life insurance when you're young is like buying concert tickets early —you'll get the best rates. Insurance companies love young, healthy people, so your premiums will be much lower than if you wait until your 40s. Plus, you'll lock in that coverage before life throws any curveballs your way.
2. Health and lifestyle: Your choices matter
Your health and lifestyle are crucial in determining premiums. Insurers assess factors such as:
Your BMI and general health.
Pre-existing medical conditions.
Your occupation and high-risk hobbies.
The Smoking factor: Smoking is a key example of how lifestyle choices affect premiums. Smokers pay considerably more than non-smokers, as shown by our data:
A 30-year-old non-smoking female pays on average $24.79 per month .
A 30-year-old smoking female pays on average $42.05 per month - that's a 51.6% difference.
That’s an extra $207.18 annually, which could otherwise cover groceries, school supplies, or even a weekend getaway.
3. Amount of cover: balancing needs and affordability
The coverage amount you select directly impacts your premiums. While lower cover can save money upfront, it’s critical to ensure your policy covers key expenses like your mortgage, debts, and your family’s needs.
Understanding what drives life insurance premiums is key to choosing the right policy. For a deeper dive into the fundamentals, read our guide: What is Life Insurance and Do You Need It?
What are the costs of life insurance?
Now that you know what influences your premiums, let’s look at some real numbers. Here’s what life insurance could cost for a 40-year-old white collar professional earning $100,000 annually.
Cover Amount | Non-Smoker (Male) | Smoker (Male) | Non-Smoker (Female) |
$250,000 | $27.35/month ($328/year) | $59.35/month ($712/year) | $23.99/month ($288/year) |
$500,000 | $40.54/month ($486/year) | $95.44/month ($1,145/year) | $34.64/month ($416/year) |
$750,000 | $53.48/month ($642/year) | $129.47/month ($1,554/year) | $45.42/month ($545/year) |
$1,000,000 | $65.99/month ($792/year) | $165.22/month ($1,983/year) | $55.81/month ($670/year) |
Source: Quashed. Note that the above costs are average life insurance costs.
What do these numbers mean for you? Let’s break it down:
Non-smokers save big: If you’re a non-smoking guy, you’ll pay $792 per year for $1,000,000 cover. Compare that to a smoker, who forks out $1,983 per year. That’s a difference of 150%.
Women can pay less: For $1,000,000 cover, a non-smoking woman pays $670 per year or 15% less than a man.
Why do these costs matter? Because knowing what life insurance costs means you can plan better. It’s not about skimping or splurging — it’s about finding that sweet spot where you can protect your family without overloading your budget.
Smart ways to keep your premiums down
Start early: The best time to get life insurance was yesterday; the second-best time is today. Starting young locks in lower premiums, saving you thousands over the years.
Live a healthy lifestyle: Quitting smoking, maintaining a healthy weight, and staying active can reduce premiums by up to 10% with some insurers.
Compare your options: Researching providers can be tedious, but that’s where Quashed comes in. Compare quotes from leading NZ insurers in no time, making it easy to find the best deal.
Are you a smoker? Learn how to save on premiums and find the best policy in our blog, Life Insurance for Smokers.
The average Kiwi household can save
$2,023.79 a year by shopping their insurance!
Find out how your renewal prices stack up against other options out there!
How Quashed simplifies life insurance
Finding the right life insurance policy shouldn’t feel like writing a thesis. Quashed makes the process straightforward by allowing you to:
Compare quotes side-by-side in real time
See exactly what each policy covers
Spot special offers and discounts.
Exclusive perks: Some insurers offer discounts for healthy lifestyles or even gym memberships. With Quashed, these deals are displayed clearly, so you can make informed decisions without any guesswork.
Ready to sort this out?
Life insurance isn’t just another bill—it’s an investment in your family’s financial security. Whether you’re a first-home buyer, a new parent, or planning for retirement, protecting your loved ones is priceless.
Why wait? Join over 45,000 Kiwis who’ve taken control of their family’s financial future with Quashed.
Shop smarter with Quashed
Insurance just got way easier with Quashed. Compare, shop and track all your insurance in one place.
FAQs
What factors influence life insurance premiums in NZ?
Premiums are affected by your age, health, lifestyle, and the amount of cover you choose. Comparing options can help you find the best fit for your budget.
Is life insurance worth the cost?
Life insurance provides peace of mind by ensuring your family is financially protected if the unexpected happens. It’s an investment in their security.
How do I calculate the right amount of life insurance?
Consider your mortgage, debts, income replacement needs, and future family expenses. Quashed’s comparison tool can help guide your decision.
Can I get life insurance if I have pre-existing conditions?
Yes, but premiums may vary. Some providers specialise in covering pre-existing conditions, and Quashed can help you find the right policy.
How does Quashed simplify the process?
Quashed offers real-time quotes, transparent comparisons, and access to exclusive discounts—all in just a few clicks. No more jumping between websites or dealing with confusing jargon.
Market Scan quotes are direct from insurers
So you won’t pay more with Quashed
