LIFE INSURANCE
Why Choose Life Insurance in New Zealand?
Life’s unpredictable - but financial security shouldn’t be. Life insurance ensures your loved ones avoid hardship if the worst happens.
As trusted life insurance brokers in NZ, we help you:
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Replace lost income to maintain your family’s lifestyle.
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Cover debts (mortgages, loans) so they’re not a burden.
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Fund future goals like your children’s education.
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Gain peace of mind with tax-free payouts for terminal illness or death.
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How Does Life Insurance Works in NZ?
In New Zealand, life insurance works as follows:
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You decide how much financial support your loved ones will need in the event of your death or permanent disability.
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Life insurance typically covers the financial needs of your dependants, beneficiaries, or funeral expenses. If the main income earner in the family passes away, their income is gone, and this can cause financial hardship. The life insurance payout helps to cover debt, replace lost income, and provide for the family.
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If you pass away, as long as your policy’s terms and conditions are met, the payout will go to your beneficiaries.
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To keep your coverage active, you’ll make regular premium payments.
While life insurance provides security, some pre-existing conditions or circumstances surrounding death may affect your cover or payout. This is why it’s important to speak with a life insurance broker who can guide you through the process and ensure your policy meets your family’s needs.
The most common pre-existing conditions that affect New Zealand insurance policies include
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Cardiovascular Diseases like Heart disease, high blood pressure, and a history of strokes.
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Diabetes, like Type 1 and Type 2 diabetes.
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Cancer – A history of cancer or being in remission.
What Makes Us Leading Life Insurance Broker ?
Access to a Wide Range of Providers
Our Brokers work with multiple insurance providers, giving you access to a variety of life insurance policies.
Personalised Advice
We offer tailored advice and guidance, helping you make well-informed decisions based on your specific needs.
Ongoing Support
From managing your policy to assisting with insurance claims, our brokers provide continuous support and service.
Industry Expertise
From managing your policy to assisting with insurance claims, our brokers provide continuous support and service.
Customised Solutions
We can tailor insurance solutions to meet your individual circumstances.
Insurance Broker vs Company: Which Should You Choose?
Range of Options:
Insurance companies typically offer only their own products, while brokers can provide a variety of options from multiple providers.
Personalised Advice:
Brokers offer expert, personalised advice and support, whereas insurance companies may not provide the same level of guidance.
Comparison Shopping:
Brokers can help you compare quotes and find the best policy at the best price, something you might not get when dealing directly with one insurance company.
Ongoing Support:
Brokers offer continuous support, from policy management to assisting with insurance claims, ensuring you have help when you need it.
Buying Life Insurance: Broker or Direct?
Experience with Life Insurance:
If you are knowledgeable about life insurance and know exactly what you need, buying directly from an insurance company might be a good option.
Need for Personalised Advice:
If you require tailored advice and guidance, a life insurance broker is likely the better choice.
Access to Options:
If you want to explore a range of policies and compare quotes, a broker can provide the necessary access and expertise.
Value of Ongoing Support:
If you value continuous support and service, working with a broker will ensure you have assistance throughout the life of your policy.
Do You Have to Pay Tax on Life Insurance in NZ?
Short answer: No. Currently, life insurance payouts in New Zealand are generally tax-free if they are paid directly to an individual or an estate. These funds can be used for funeral expenses, living costs, or other end-of-life arrangements.
However, every case is unique. If you think you may fall outside the standard tax-exemption guidelines, it’s important to consult with both an insurance broker and a financial adviser. Together, they can ensure your loved ones avoid unnecessary financial burdens.
New Zealand Beneficiaries:
Life insurance payouts to local beneficiaries, such as family trusts, are generally tax-free. However, if the payout is invested, any interest earned may be taxed as trust income up to 39%.
Overseas Beneficiaries:
Beneficiaries living abroad may face inheritance or income tax in their country of residence, potentially reducing the payout. Tax treaties might help reduce the burden, but obligations may still exist depending on the country’s laws.
While New Zealand doesn’t tax life insurance payouts directly, the tax implications for overseas beneficiaries or trusts can vary significantly.
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What Conditions Could Limit Life Insurance Policies Coverage?
While we avoid the term “disqualify,” some pre-existing conditions could limit the amount or type of life insurance you qualify for, including:
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Cancer
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Diabetes
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HIV/AIDS
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Heart disease
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Family history of conditions
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Drug/alcohol use
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BMI/Obesity
Disclosing a pre-existing health condition doesn’t mean you can’t obtain life insurance. However, it may affect your premiums or coverage limits. In some cases, the type of life insurance you can get may also be affected (e.g., income protection insurance vs. mortgage protection insurance).
Additionally, some situations, such as suicide within 13 months of obtaining a policy or terminal illness related to a known but undisclosed condition, may result in the life insurance payout being denied.