6 Best Life Insurance Companies in NZ for 2023
In the ever-changing landscape of personal insurance, finding the best life insurance company to put your cover through can be a seemingly difficult task, even in little old NZ. There are so many options out there and factors to think about.
The following article is meant to provide some real world advice regarding the Top 6 Life Insurers in NZ to assist you in your decision making, showing you which options are strong & affordable and what benefits the various insurers offer.
The main life insurers in NZ.
Background
Within personal finance, life insurance stands as a pillar of protection, providing individuals and their loved ones with a safety net during unexpected times. As we venture into 2023 navigating this sea of countless life insurance options can be overwhelming.
Life insurance is not a one-size-fits-all product, as each individual's needs and circumstances differ. Whether you're a young professional starting a family, a business owner safeguarding your company, or a retiree seeking peace of mind, finding the perfect life insurance provider is highly important.
In this blog post, we will delve into the top life insurance companies operating in New Zealand, considering various aspects such as customer satisfaction, policy options, policy strength & financial stability* (note: price fluctuates between insurers depending on your demographic, to understand which insurer is the most cost effective specifically for you, request a quote).
By examining these factors that are based on readily available data, along with our personal experience, we aim to assist you in making an informed decision that aligns with your unique requirements. Let’s begin!
Why Life Insurance?
Life insurance is a financial product designed to provide a lump sum payout to the policyholder's beneficiaries upon the policyholder's death. There are several reasons why someone might consider getting life insurance:
Financial Protection for Loved Ones: The policy's death benefit can be used to replace the income of the deceased, cover outstanding debts (like mortgages or loans), pay for children's education, and maintain the family's standard of living.
Funeral and Final Expenses
Debt and Mortgage Coverage
Business Continuity: Life insurance can be crucial for business owners, especially in partnerships or when there are key individuals essential to the success of the business. It can help the surviving business partners buy out the deceased's shares and ensure the continuity of the business.
Charity and Legacy: Some individuals use life insurance as a way to leave a legacy or make a charitable contribution. They can designate a charity as the beneficiary of the policy to support a cause close to their heart and ensure that they make a difference even in death.
Peace of Mind
The Results:
Partners Life
AIA
Chubb Life
Asteron Life
Fidelity Life
NIB
“Elan got us the cover we needed and saved us money as well.” - Justin Wood
1. Partners Life
Company Background:
Partners Life is a prominent New Zealand insurance company that began in 2011 and specializes in providing comprehensive insurance solutions to individuals and businesses. Established with a customer-centric approach, Partners Life has gained a strong reputation within the industry for its commitment to excellence and innovative product offerings. With a focus on transparency, efficiency, and advanced technology, the company ensures prompt and reliable claims settlements along with constantly improving products. Partners Life's dedication to social responsibility is evident through its active involvement in community initiatives and support for charitable causes, making a positive impact on the lives of New Zealanders.
Pros:
Loyalty Discount (up to 10% off)
Terminal Illness Benefit (full amount paid out if diagnosed terminally ill)
Specified Terminal Conditions Benefit (30% full amount paid out if diagnosed with one of the listed serious illnesses)
Repatriation Benefit
Special Events Increase Benefit (increase your cover amount without further medical questioning.
Worldwide Cover
Level premium options (premiums stay constant as you age but cost more initially)
Fast digital underwriting
Summary:
Partners Life is an incredibly solid choice for Life Insurance in NZ. Their policy is one of the strongest available in the country and in our experience they have continued to show a very compassionate attitude towards claims. On top of this, their loyalty discount provides clients with affordable solutions to protect their loved ones long-term. They also have a large range of other insurance types that are equally market-leading that can be added to your policy.
Providing Kiwi’s with expert Life Insurance advice for 30+ years.
2. AIA
Company Background:
AIA is a leading insurance company with a rich history and a strong presence in the Asian & Pacific market. Founded in 1919, AIA has grown into one of the largest insurers in the region, serving millions of customers across 18 markets. The company offers a wide range of insurance products, including life, health, and retirement solutions. With a focus on customer-centricity, innovation, and long-term sustainability, AIA is committed to helping individuals and families live healthier, longer, and better lives. AIA's success is driven by its strong financial performance and extensive distribution network.
Pros:
Multi-benefit discount (if other insurances are added such as Trauma or Income/Mortgage Protection)
Terminal Illness Benefit (full amount paid out if diagnosed terminally ill)
Specified Terminal Conditions Benefit (30% full amount paid out if diagnosed with one of the listed serious illnesses)
Repatriation Benefit
Special Events Increase Benefit (increase your cover amount without further medical questioning.
Worldwide Cover
Fast digital underwriting
Summary:
AIA is New Zealand’s largest Life Insurer and is a great choice for anyone looking to purchase life cover. Their policy is very strong and their claims attitude is good. Due to their international presence and long time in the market, their financial strength is also unparalleled.
3. Chubb Life
Company Background:
Chubb is a global insurance company known for its excellence in providing property, casualty and now personal insurance solutions, such as life insurance. With a history dating back to 1882, Chubb has established itself as a trusted insurer with a strong presence in over 54 countries. The company offers a comprehensive range of insurance products and in 2021 acquired Cigna’s NZ Life Insurance business. Chubb is renowned for its financial strength, underwriting expertise, and commitment to exceptional customer service, making it a preferred choice for clients seeking reliable and tailored insurance coverage worldwide.
Pros:
Competitive Pricing
Terminal Illness Benefit (full amount paid out if diagnosed terminally ill)
Specified Terminal Conditions Benefit (30% full amount paid out if diagnosed with one of the listed serious illnesses)
Repatriation Benefit
Special Events Increase Benefit (increase your cover amount without further medical questioning.
Fast digital underwriting
Summary:
Chubb is a strong insurer and one that is innovating a great deal since acquiring Cigna NZ in 2021. At time of writing (July 2023) Chubb are offering your first 2 months of cover free with any new policy and if you meet certain criteria (based on BMI and smoking status) then you may qualify for a 10% premium discount. If price is your main question, then Chubb could be your answer.
We make sorting your insurance easy! No broker fees, no hidden costs.
4. Asteron Life
Company Background:
Asteron Life is a respected life insurance company operating in New Zealand. Established in 1878, Asteron Life has a long-standing presence and expertise in the insurance industry. The company offers a comprehensive range of life insurance products, including life cover, income protection, and trauma cover. Asteron Life focuses on providing tailored insurance solutions that meet the evolving needs of its customers. With a commitment to excellence, financial strength, and a customer-centric approach, Asteron Life has earned a reputation for reliability and trustworthiness, making it a preferred choice for individuals seeking comprehensive life insurance protection in New Zealand.
Pros:
Special Events Conversion Benefit (this allows you to take out some Trauma Recovery Insurance or Total & Permanent Disablement Insurance without further underwriting).
Funeral Advancement Benefit (immediate $15,000 payment from your life insurance)
Terminal Illness Benefit
Other ‘Optional’ benefits that can be added
Summary:
Asteron Life has a history of innovation within the Insurance Industry. Many of their insurance products include optional benefits that other insurers may not offer. For this reason, they can be a strong option and one that should be considered, especially if you have unique requirements.
5. Fidelity Life
Company Background:
Fidelity Life is a reputable life insurance company based in New Zealand. Since its inception in 1973, Fidelity Life has been committed to protecting the financial futures of its customers. The company offers a diverse range of life insurance products, including life cover, trauma cover, income protection, and funeral cover. With a customer-centric approach, Fidelity Life focuses on delivering personalized solutions that meet the unique needs of individuals and families. The company's dedication to innovation, reliability, and exceptional service has earned it a strong reputation in the insurance industry, making it a trusted choice for life insurance in New Zealand.
Pros:
Terminal Illness Benefit (full amount paid out if diagnosed terminally ill)
Specified Terminal Conditions Benefit (30% full amount paid out if diagnosed with one of the listed serious illnesses)
Special Events Increase Benefit (increase your cover amount without further medical questioning.
Competitive pricing for people in their 20’s
Summary:
Fidelity Life has been a constant presence in the NZ insurance industry for the last 50 years. They have a diverse range of insurance products with a relatively strong life insurance policy.
6. NIB
Company Background:
NIB is a leading health insurance provider based in Australia and New Zealand. Established in 1952, NIB has grown into one of the largest health insurers in the region, serving over 1.7 million customers. The company offers a comprehensive range of health insurance plans, along with basic life insurance coverage that can be added to any of their health insurance policies. NIB is committed to providing affordable and accessible healthcare solutions, with a focus on customer satisfaction and innovative digital services.
Pros:
Can be added to an existing NIB Health Insurance policy
Terminal Illness Benefit (full amount paid out if diagnosed terminally ill, needs to be confirmed by 2 separate medical professionals)
Complimentary Funeral Expenses cover
Competitive pricing (for some demographics)
Cons:
$1 million policy limit
Summary:
NIB, whilst more commonly known as a health insurer, can offer life insurance to paying customers as well. Whilst their policy might not have all the additional options of some insurers, the key benefits remain equal. NIB Life Insurance makes sense to those who already have NIB Health Insurance but want to include a modest amount of life cover to broaden their coverage. For more significant amounts we would recommend a different life insurer.
Aren’t there other Life Insurers in NZ?
Most of the other companies/banks which offer Life insurance actually just use policies from the above 6 insurers and resell them. So if you sign up with a bank, usually your insurance is placed (underwritten) with their corresponding insurer, not the bank itself.
We usually recommend to not place your insurance through the bank as the customer experience is generally poor & very little is explained to you regarding your options. Come claim time, you’re also on your own without a broker in ‘your side of the ring’.
Note: Southern Cross life insurance whilst underwritten by Chubb, usually costs significantly more than actually using Chubb. So if you have Southern Cross health insurance already and want life cover added, it may be best to get life insurance from a separate provider (especially for larger amounts).
Which Insurer is best for Pre-Existing Conditions?
Pre-existing conditions can be a real pain when it comes to getting life insurance and it’s often why we recommend getting a little bit of cover whilst you’re young and healthy.
An application for Life Insurance is generally more resilient to pre-existing conditions than other types of cover. It usually takes multiple serious pre-exisiting conditions before an insurer will say no to life cover or slap you with large loadings (increases to the premium). Insurance products such as Trauma, Income or Health insurance are much more easily affected by pre-existing conditions.
This is because to affect your chances of claiming on life insurance, the health conditions you need to have will inherently be more serious.
Certain insurers and their underwriting teams may be more lenient when judging specific health issues than others. In 30 years we’ve seen many of these differences and continue to be observant regarding this. If you want an opinion on your specific pre-existing condition and which insurer could be good for you, get in touch, we may be able to help.
Should I use a Broker?
Yes. Whilst we may be a bit biased being brokers ourselves, here are the facts:
Using a broker is free, nor does it increase the cost of the insurance.
We are independent and can write business with whichever insurer will provide the best cover for your specific situation.
We are experts and know the pro’s/con’s of most of the policies out there. This will save you time having to read through policy wordings yourself.
Brokers will generally spend more time explaining things to you and listening to your needs.
We will help you through any future claims and be your personalised assistant for any insurance queries you have in the future. No more waiting to get through to a mystery person on an 0800 number.
Having an industry expert who is ‘on your side’ during a claim can improve your claim outcome and remove a lot of stress off you.
ULTIMATE GUIDE to NZ Life Insurance
||
ULTIMATE GUIDE to NZ Life Insurance ||
Want more detail about Life Cover?
Tailored insurance solutions from the friendly experts…
I am a qualified & independent Insurance Broker that works with my clients to get the covers they need whilst being mindful of their budgets & goals.
I specialize in Life, Health and Disability Insurance for Kiwi’s, along with insurance for business owners.
I can help people who:
Want to get insurance in place but don’t know where to start.
Want their current insurance reviewed.
Oliver Pykett
Independent Insurance Broker
*policy strength, additional benefits & financial stability ratings for the various insurers have been calculated using readily available information contained in policy wordings, benefit summaries and company financials. Customer satisfaction has been calculated using an equation which predominantly takes into account the percentage of claims paid, typical response time, along with our personal servicing experience with these insurers (if we have reliable data to back this up).
