Male vs female life insurance premiums

Life insurance is priced on the probability that the insurer will pay a claim while the policy is in force. Female mortality at any given age is lower than male mortality, so the premium is lower. That is the entire mechanism — there is no discount being applied and nothing to negotiate.

Unlike some overseas markets, New Zealand does not prohibit gender-based pricing in life insurance, so the difference appears directly in the quoted premium.

What is more interesting than the gap itself is what households do with it. Cheaper cover on one life often turns into less cover on that life, which is exactly backwards — a lower price is a reason to insure properly, not a reason to insure less.

At 30 the female premium is roughly 28% to 30% below the male figure across all three insurers. At 40 the gap narrows sharply, to roughly 12% to 14%. At 50 it widens again, to roughly 17% to 21%. Those proportions are drawn from a narrow panel — a wider one would produce a different spread.

These are the details that decide whether the cover does what you expected. Read them before you compare on price.

• Whether both partners have been quoted, not just the higher earner.
• Whether a joint policy is being suggested. It typically pays once and then ends, which usually disadvantages the survivor.
• Whether the lower premium has been used to justify a lower sum insured rather than proper cover.
• Whether income protection has been considered for both partners, where the pricing dynamics are different again.
• Whether cover on a partner at home has been dismissed because there is no salary to insure.

Every premium figure on this page is a published market example, not a quote we have generated. Here is exactly what they are.

• There is no league table here, and anyone presenting one is flattening something that does not flatten. New Zealand insurers set premiums per applicant, weigh health history differently from one another, and change their appetite over time. The number that matters is the one your application returns.
• Published premium comparisons make this look more settled than it is. Insurers do not price to a common standard, so the cheapest name changes with the profile being quoted — and changes again once underwriting sees your medical history.
• Both exclude every discount — healthy-lifestyle, membership, multi-benefit and first-year — and both assume a clean health history with no loading applied.
• Neither reflects policy fee treatment, CPI indexation or the cost of riders, and published rates change between updates.

Your own number comes from an insurer in writing, after underwriting. Treat these figures as the shape of the market rather than as your price.

Every New Zealand insurer writes what life insurance costs in nz to its own wording, and the words are where the money is. Two policies that look identical on price can pay very differently when it matters. Closing that gap is the entire job of an adviser.

• Insurer rate tables treat the male and female curves differently, so the cheapest insurer for a woman at 40 is not always the cheapest for her partner.
• Income protection for part-time and returning-to-work patterns is underwritten very differently between insurers.
• Cover on a non-earning partner is available from most insurers but the maximum and the basis differ.
• Where a couple insure together, multi-benefit and policy fee structures can change which insurer is cheapest overall.

There are three ways to buy life cover in New Zealand, and they are not equivalent. You can buy direct from one insurer, which means you see one product range and one underwriting appetite. You can buy through your bank, which usually means a single insurer’s product sold under the bank’s brand, often with narrower definitions. Or you can go through an adviser, who quotes several insurers at once and is required to put your interests first.

The premium you pay is the same either way. Insurers build adviser commission into their pricing whether or not an adviser is involved, so going direct does not get you a discount — it just removes the person whose job is to argue your corner at application and at claim time.

• An adviser can see which insurer is currently taking your health history on standard terms, and which one will load or exclude it.
• An adviser can structure cover across two insurers if that produces a better outcome than putting everything with one.
• An adviser handles the underwriting back-and-forth, and is the person who chases the claim when a family is least able to.
• An adviser has to document why the recommendation suits you, which is a written record you can hold them to.

We are a referral service, not an insurer. We do not quote premiums and we do not sell policies. What we do is put you in front of one licensed New Zealand adviser who can compare the market properly.

1. 1

   You tell us what you are looking at

   The form takes about a minute. Nobody asks for your medical history on a web form — that conversation happens with the adviser, properly, and only once you have decided to proceed.

2. 2

   An adviser calls you

   A licensed New Zealand adviser talks through your situation: who depends on you, what you owe, what you already have in place, and what you are actually worried about.

3. 3

   They compare the market

   The adviser quotes across the major insurers, checks which of them will take your health history on the best terms, and puts the options side by side in writing.

4. 4

   You decide, in your own time

   There is no obligation and no cost to you. If the answer is that you already have enough cover, a good adviser will tell you that.