Compare & Save On Life Insurance

What life insurance costs in NZ

$15.60 a monthwas the lowest life insurance quote on Market Scan in May 2026, for a 30-year-old non-smoking woman with $250,000 of cover¹

The highest, $194.69 a month, was for a 50-year-old non-smoking man with $1,000,000 of cover. Everything between those two is mostly age and the amount of cover. What the range hides is that the same person, asking for the same cover in the same month, is quoted very different prices by different insurers.

There is no single cheapest life insurer. These quotes are for one profile in one month; a different age, health history or occupation can change the order. The only way to know your own price is to compare on your own details.

Quotes by age and cover amount

Monthly quotes for a man aged 40

Monthly quotes for a woman aged 40

Quotes are point-in-time examples for the profile described (employed, non-smoker, no health issues), not a ranking and not a prediction of your own premium. Premiums for the same cover roughly double between 30 and 50; like for like, premiums for women are generally lower than for men. Insurers are listed alphabetically.

Do you need life insurance?

41%of New Zealanders hold life insurance, according to the Financial Services Council²

It is not required by law. The question is whether anyone would be worse off financially if your income stopped. A partner sharing a mortgage, children, or anyone who relies on what you earn is the usual reason people hold it. Someone with no dependants and no debts may have little use for it.

Quashed does not tell you whether to hold it or how much. It shows what each amount of cover costs, so the decision is made on real numbers rather than on assumptions.

What people buy life insurance for

These are the goals a person chooses from when they start a life Market Scan on Quashed. Most pick more than one, and the mix shapes how much cover they end up quoting. The figures are rounded prompts, not a recommendation³

• Create a safety net

  for the people who depend on them

  Living costs for a family of four run about $72,000 a year.

• Pay off debts

  so a mortgage does not pass to family

  The average mortgage is $400,000+, and the average Kiwi carries about $4,000 in credit debt.

• Leave an inheritance

  for loved ones

  Putting one child through university costs about $24,000.

• Give generously

  to a cause they care about

  Kiwis who claim the donation tax credit give about $3,000 a year on average, and around 7% of wills include a gift to a charity.⁴

• Access new treatment

  options if terminally ill

  A year of a cancer medicine Pharmac does not fund can cost $70,000 to $100,000. A one-year course of Keytruda was up to $100,000 before it was funded.⁵

• Fund a bucket list

  if terminally ill

  A luxury holiday costs roughly $20,000 a person.

What life insurance covers

Life insurance pays a lump sum, the sum insured, if the person insured dies while the policy is in force. It exists so that the people who depend on your income are not left carrying your debts and living costs as well.

• A lump sum on death

  The core of the policy: a fixed amount, the sum insured, paid to the policy owner or your estate if you die while the policy is in force.

• Terminal illness

  Most NZ life policies pay the sum insured early on a diagnosis of a terminal illness, usually where life expectancy is under 12 months.

• Anywhere in the world

  Life cover is not tied to New Zealand. It pays wherever you are, though some policies ask you to tell the insurer about extended time overseas.

• Optional add-ons

  Many insurers let you attach trauma, total permanent disability or income protection to the same policy. Each is priced separately.

• A funeral advance

  Some policies pay a portion of the sum insured within days to cover funeral costs, before the full claim is assessed.

• No cash value

  Term life insurance is protection only. If the policy lapses or ends, nothing is paid out and the premiums are not returned.

Life insurance vs trauma, TPD and income protection

“Life insurance” is often used for a family of covers that pay in different situations. They are separate products with separate premiums, even when sold on one policy.

ACC is the reason this matters in New Zealand. It covers injury, not illness, and most long-term claims are illness. Income protection and mortgage repayment cover are what respond when ACC does not.

Life insurance calculator: how much cover do you need?

The sum insured is the biggest lever on the premium after your age, so it is worth arriving at a number for a reason rather than picking a round one. This free NZ life insurance calculator adds up what the money would need to do: the same three questions Quashed asks in the app. Enter your own figures and the total updates as you type.

The calculator works out a cover amount, not a premium. To see what that amount costs, compare live quotes from NZ life insurers on Market Scan.

Other ways people work out how much life insurance they need

• Adding up what it needs to do

  Clear the mortgage and other debts, then add some years of income for the people who depend on it, less any savings. The most common approach.

• A multiple of income

  Some people use a multiple of annual income as a starting point and adjust from there. Quicker, and less tied to actual commitments.

• What the premium allows

  Others start from a monthly amount they are comfortable paying and see how much cover it buys. Market Scan shows this directly.

• Revisited over time

  Whichever approach, the number changes as the mortgage is paid down and children become independent. Cover that was right at 35 is often more than needed at 55.

A financial adviser can work through this with you. Quashed shows the price of any amount you choose to quote.

What drives the price of life insurance

• Your age

  The single biggest driver. Premiums for the same cover roughly double between 30 and 50 in the quotes above.

• Whether you smoke

  Smokers pay substantially more. Many insurers treat you as a non-smoker again after a period without smoking, commonly 12 months.

• Your gender

  Like-for-like premiums for women are generally lower than for men, reflecting the life expectancy figures insurers price from.

• Your health and medical history

  Underwriting looks at existing conditions, weight, family history and recent tests. It can load the premium or exclude a condition.

• Your occupation

  Higher-risk work costs more to insure. It matters more for income protection and TPD than for the life cover itself.

• How much cover, and how you pay

  A larger sum insured costs more, though not in proportion. Paying annually is usually cheaper than monthly.

Stepped vs level premiums

The same cover can be paid for in two ways, and the choice changes both the price today and the price in ten years. The quotes on this page are stepped premiums.

Insurers can also change base rates for all customers on either type, so “level” means level against your age, not guaranteed forever.

Six ways to pay less for life insurance

1. 1

   Compare before you buy, and again at renewal

   The same cover, same profile, same month: the quotes above differ by around 30%. Nothing else on this page moves the price that much.

2. 2

   Give accurate health, smoking and occupation details

   These drive the premium more than anything else, and a policy issued on wrong details can fail at claim time.

3. 3

   Match the sum insured to what it is for

   Cover that clears the mortgage and replaces some income is a different number from cover picked as a round figure.

4. 4

   Quit smoking, then tell the insurer

   After a smoke-free period, commonly 12 months, many insurers reprice you as a non-smoker. It does not happen unless you ask.

5. 5

   Pay annually if you can

   Most life insurers charge more to pay monthly. Check the difference before choosing.

6. 6

   Review the cover as life changes

   A mortgage paid down or children grown up can mean a sum insured that no longer needs to be as large. Premiums fall with it.

What you need to get a life insurance quote

Comparing life insurance takes a few minutes. Have these to hand:

• Your age and date of birth
• Whether you smoke, or when you stopped
• Your occupation and roughly what you earn
• A summary of your health: conditions, medication, recent tests
• How much cover you want quoted, and for whom
• Any life, trauma or income cover you already hold

How Market Scan works for life insurance

1. 1

   Tell us about yourself

   Age, smoking status, occupation and the cover amount you want quoted.

2. 2

   Answer a few health questions

   Insurers need these to price the risk. Accurate answers now are what make the policy pay later.

3. 3

   View price and policy comparison

   Live monthly premiums from NZ life insurers, side by side, with what each policy includes.

4. 4

   Apply online, or keep what you have

   If nothing beats your current policy, that is a useful answer too. There is no cost either way.

Why compare on Quashed

• Real life insurance quotes from NZ insurers, side by side
• Upload or select your current policy and compare it directly
• Pricing pulled live from providers; cover comparison checked quarterly
• More than 100,000 consumers have used Quashed since April 2021
• Backed by Icehouse Ventures, Turners Automotive Group and NZ Growth Capital Partners

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Health, pre-existing conditions and smoking

Life insurance is underwritten: the insurer assesses your health before agreeing to cover you. That assessment sets the premium and any exclusions.

A pre-existing condition does not usually mean no cover. The common outcomes are cover at the standard price, cover with a loading, cover with that condition excluded, or, less often, a decline. Different insurers reach different answers on the same history, which is a reason to compare more than one.

Smoking is priced as its own risk. Insurers define it broadly, often including vaping and occasional use, and many reprice you as a non-smoker after a smoke-free period, commonly 12 months.

What you disclose at application is what the policy is built on. Leaving out a condition to get a lower premium is the thing most likely to make a claim fail years later. Comparing on Quashed commits you to nothing; your answers are used to quote, not to apply.

Read more on pre-existing conditions · Life insurance as a smoker

What life insurance does not cover

• Anything not disclosed

  A claim can be reduced or declined if the application left out something the insurer would have priced or excluded. The most common reason life claims fail.

• Suicide in the initial period

  Most policies exclude suicide for a set period after the start date, commonly 13 months, and cover it afterwards.

• Conditions excluded at underwriting

  An insurer may accept you but exclude a specific pre-existing condition. It is written on the policy schedule.

• A lapsed policy

  If premiums stop and the policy lapses, there is no cover and no refund. Insurers usually allow a grace period and sometimes reinstatement.

• Illegal acts

  Death arising from the insured person committing a crime is commonly excluded.

• War and similar events

  Some policies exclude death from war or active military service. Terms vary by insurer.

Exclusions vary between insurers and this is a general guide, not a policy summary. Always read the policy wording before you buy.

Who gets the money

A life policy has a person insured and a policy owner. They can be the same person, and who the owner is decides where the payment goes.

• Owner is the person insured

  The sum insured is paid into their estate and distributed under the will. That can take time, and the money passes through the estate first.

• A partner is the owner, or a joint owner

  The payment goes directly to the surviving owner, outside the estate. This is why many couples set the policy up this way.

• A nominated beneficiary

  Some NZ insurers let the owner nominate who is paid. Where offered, it has the same effect as direct ownership.

• Changed later

  Ownership can usually be transferred after the policy starts, for instance after a separation. It is a form, not a new policy.

How to switch life insurers

Switching life cover has one rule the other insurance types do not: the new policy has to be accepted before the old one goes.

1. 1

   Run a Market Scan

   Compare your current cover against the market on price and on what each policy includes.

2. 2

   Get the new policy accepted before cancelling the old one

   Life cover is underwritten, so acceptance is not guaranteed and can carry exclusions or a loading. A gap in cover is a gap you are carrying yourself.

3. 3

   Check what resets on a new policy

   A new policy starts its own stand-down periods, and a condition that was covered under the old policy may be excluded under the new one.

4. 4

   Then cancel the old policy

   Once the new cover is in force. Term life has no cash value, so there is nothing to claim back beyond any unused premium.

Compare life insurance

Making a life insurance claim

If you are reading this because someone has died, there is no hurry on most of what follows. The one thing worth knowing today: many policies advance a funeral sum within days, before the full claim is assessed. Ask the insurer for it.

The policy owner, or the executor of the estate, notifies the insurer. Most have a dedicated claims line and will send the forms. They will typically ask for the death certificate, the policy document, proof of identity for the claimant and, for a claim through the estate, probate.

Claims in the first years of a policy are often reviewed against what was disclosed when it was taken out. This is why accurate answers at the start matter. Payment goes to the policy owner, or into the estate if the owner was the person insured.

Reviewed July 2026 by James, Quashed. This page is a general guide to how life insurance works in New Zealand. It is not financial advice and not a policy summary. Quotes are refreshed when Market Scan data is re-pulled.

Sources

1. Life insurance quotes are monthly premiums returned by Quashed Market Scan in May 2026 for the profile stated (employed, non-smoker, no health issues), across the insurers shown. They are point-in-time examples, not averages of what New Zealanders pay.
2. Share of New Zealanders holding life insurance: research published by the Financial Services Council of New Zealand.
3. Mortgage, credit debt, university, family living cost, holiday and cost-of-raising-a-child figures are the rounded prompts used in Quashed’s life insurance tools. They are estimates to size cover against, not current statistics, and not a recommendation of how much cover to hold.
4. Average donation: Inland Revenue donation tax credit statistics, 2025 tax year (350,800 people claimed credits on $1,085 million of donations, about $3,090 each; credits are claimed on a subset of all giving). Share of wills with a charitable gift: Public Trust, Wills Week 2025, wills written with Public Trust over the preceding three years.
5. Unfunded medicine costs: nib, “The eye-watering costs of non-Pharmac drugs”, 5 March 2024 (Tafinlar over $80,000 a year; trastuzumab over $70,000 a year plus administration); RNZ, 1 October 2024 (a one-year course of Keytruda up to $100,000). Keytruda is now Pharmac-funded for several cancers; costs apply to medicines and indications that are not.