Types of personal insurance cover
Life, trauma, TPD, income protection, mortgage cover, funeral cover and health insurance — what each one actually pays for, and which of them you probably need first.
98 guides in this section
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Life insurance: how it works and what it costs
Life insurance pays a lump sum to the people who depend on you if you die while the policy is in force. Everything else — premium structure, riders, insurer — is detail hung off that one promise.
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Trauma insurance: how critical illness cover works
Trauma cover — also called critical illness cover — pays a lump sum when you are diagnosed with one of the serious conditions listed in your policy and survive a short stand-down. It is money for living, not for dying.
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TPD insurance: total and permanent disability cover
Total and permanent disability cover pays a lump sum if illness or injury permanently stops you working. The word doing the work in that sentence is “permanently”, and the definition attached to it decides everything.
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Income protection: cover for when you cannot work
Income protection replaces part of your earnings when illness or injury stops you working. For most working households it is the most important policy they can own, and the one they are most likely not to have.
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Mortgage protection and repayment cover
Mortgage protection is a category, not a product. It can mean life cover sized to a loan, a monthly repayment benefit, or a bundle sold at the loan table — and the differences matter more than the name.
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Funeral insurance: how it works, and when it does not
Funeral cover is a small life policy sold with little or no underwriting. It is easy to buy and expensive per dollar of cover — and for many people a small term life policy or a savings account does the same job for less.
Life insurance
A lump sum for the people who depend on you.
- Term life insurance explainedHow term life cover works in New Zealand, why most NZ policies are yearly renewable rather than fixed-term, and how to choose the right length.
- Level term life insurance: is it worth it?Level premium life insurance in New Zealand — how fixing your premium to age 65, 70 or 80 works, when it beats stepped, and what “level” does not guarantee.
- Stepped vs level life insurance premiumsStepped or level premiums in New Zealand — how each works, where the crossover really falls, and why 3% growth assumptions understate the cost of stepped cover.
- Yearly renewable term coverWhat yearly renewable term means on a NZ life policy — guaranteed renewal to a maximum age, and a premium that is recalculated every year.
- Whole of life insurance explainedWhole of life cover in New Zealand — how the savings element works, why the sum insured is usually small, and what to check before cashing in an old policy.
- Joint vs single life insurance policiesJoint life cover pays once and ends. Two single policies pay twice and separate cleanly. What that trade-off is worth for New Zealand couples.
- Accidental death coverAccidental death cover is cheap because it pays in very narrow circumstances. What it covers in NZ, what it misses, and when it is the right answer.
- The terminal illness benefitHow the terminal illness benefit on a NZ life policy works — the life expectancy test, who certifies it, and why 12 months versus 24 months changes everything.
- The bereavement benefitThe early payment most NZ life policies make within days of a death — what it covers, how much it is, and how to claim it before probate.
- Indexation and CPI increasesWhy your sum insured and premium rise each year, how CPI indexation is priced at your attained age, and what happens if you keep declining it.
- Special events and future insurabilityHow future insurability options let you increase NZ life cover with no medical evidence after a mortgage, a baby or a pay rise — and the deadlines.
- Conversion optionsConverting stepped cover to level, or a group scheme to a personal policy, without new medical evidence — what NZ insurers allow and the age limits that apply.
- Waiver of premiumWaiver of premium keeps your NZ policy in force when illness or injury stops you earning. How the waiting period works and why advisers add it by default.
- Riders and optional benefitsWhich optional benefits on a NZ life policy earn their premium and which are padding — waiver, children's cover, buy-back, needlestick and the rest.
- Life insurance in AucklandLife, trauma and income cover in Auckland — mortgage size, occupation mix, private hospital access, and why your suburb never changes the price.
- Life insurance in WellingtonLife and income cover in Wellington — why an office-heavy occupation mix prices well, and why your suburb never changes the premium.
- Life insurance in ChristchurchLife and income cover in Christchurch — construction and manufacturing occupation classes, and why your suburb is not a rating factor.
- Life insurance in HamiltonLife and income cover in Hamilton — dairy, logistics and health sector occupations, farm-linked family finances, and why your suburb never changes the premium.
- Life insurance in TaurangaLife and income cover in Tauranga — port and horticulture occupations, high housing costs against local incomes, retirees, and why your postcode is not priced.
- Life insurance in DunedinLife and income cover in Dunedin — a university and health economy, lower housing costs, renters and young professionals, and why your address is never rated.
- Life insurance in NapierLife and income cover in Napier — port, wine and horticulture occupations, seasonal income, and why your address is never a rating factor.
- Life insurance in HastingsLife and income cover in Hastings — horticulture, packhouse and food processing work, contractor income, and why your address never changes the premium.
- Life insurance in Palmerston NorthLife and income cover in Palmerston North — defence, logistics, education and agriculture occupations, and why your address is not a rating factor in NZ.
- Life insurance in NelsonLife and income cover in Nelson — fishing, forestry, horticulture and self-employment, aquaculture risk, and why your address never changes the premium.
- Life insurance in RotoruaLife and income cover in Rotorua — forestry, geothermal and tourism occupations, seasonal work, and why your postcode is never part of the price.
- Life insurance in New PlymouthLife and income cover in New Plymouth — energy, engineering and dairy occupations, roster work, and why a Taranaki address never changes the premium.
- Life insurance in WhangāreiLife and income cover in Whangārei — forestry, marine, construction and dairy work, travel for specialist care, and why your address is not rated.
- Life insurance in InvercargillLife and income cover in Invercargill — dairy processing, meat works and shift work, low housing costs, travel for treatment, and why your address is not rated.
- Life insurance in QueenstownLife and income cover in Queenstown — seasonal and variable income, tourism and hospitality work, very high housing costs, and why your address is not rated.
- Life insurance in WhanganuiLife and income cover in Whanganui — agriculture, health and processing work, affordable housing, an older population, and why your address is never rated.
- Life insurance in GisborneLife and income cover in Gisborne — forestry and horticulture work, isolation from specialist care, seasonal income, and why your address is never rated.
- Life insurance in TimaruLife and income cover in Timaru — meat and dairy processing, port and agriculture work, affordable housing, and why your address is never a rating factor.
- Life insurance in BlenheimLife and income cover in Blenheim and Marlborough — viticulture, aquaculture and aviation work, vintage-season income, and why your address is not rated.
- Life insurance in MastertonLife and income cover in Masterton and the Wairarapa — farming, processing and Wellington commuters, and why your address never changes the premium.
- Life insurance in TaupōLife and income cover in Taupō — tourism, forestry and geothermal work, self-employment, and why a Taupō address never changes the premium.
- Life insurance in CambridgeLife and income cover in Cambridge — equine and dairy country, lifestyle blocks, commuters, and why a Waikato address never changes the premium.
- Life insurance in PukekoheLife and income cover in Pukekohe — market gardening, trades and transport, commuting to Auckland, and why your address is never a rating factor.
- Life insurance on the Kāpiti CoastLife and income cover on the Kāpiti Coast — retirees, Wellington commuters, older-age premiums, and why your address never changes the price.
- Life insurance on the North ShoreLife and income cover on Auckland’s North Shore — professional households, large long-run mortgages, an older demographic, and why your suburb is not rated.
- Life insurance in West AucklandLife and income cover in West Auckland — trades, transport and younger families, occupation classes, and why your suburb never changes the premium.
- Life insurance in South AucklandLife and income cover in South Auckland — manufacturing, logistics and shift work, larger households, and why your suburb is never a rating factor.
- Life insurance in East AucklandLife and income cover in East Auckland — professionals, business owners, high property values, migrant households, and why your suburb is not rated.
- Life insurance in central AucklandLife and income cover in central Auckland — apartments, renters and young professionals, and why income protection often beats life cover here.
- Life insurance in ManukauLife and income cover in Manukau — airport, freight and industrial work, shift rosters, public hospital load, and why your suburb is never rated.
- Life insurance in AlbanyLife and income cover in Albany — new builds, growth-suburb mortgages, young families and students, and why your suburb never changes the premium.
- Life insurance in TakapunaLife and income cover in Takapuna — professional services, self-employed consultants, apartments and downsizers, and why your suburb is not rated.
- Life insurance in PapakuraLife and income cover in Papakura — growth-area mortgages, trades and commuting, tight budgets, and why your suburb never changes the premium.
- Life insurance in HowickLife and income cover in Howick — established families, self-employment, education costs and estate planning, and why your suburb is not a rating factor.
- Life insurance in NorthlandLife and income cover across Northland — forestry, marine, dairy and self-employment, travel for treatment, and why your address is never rated.
- Life insurance in the WaikatoLife and income cover across the Waikato — dairy, logistics and health, farm debt and succession, and why your address never changes the premium.
- Life insurance in the Bay of PlentyLife and income cover across the Bay of Plenty — port, horticulture and forestry work, seasonal income, retirees, and why your address is not rated.
- Life insurance in Hawke’s BayLife and income cover across Hawke’s Bay — horticulture, wine and processing work, seasonal income, and why your address is never a rating factor.
- Life insurance in Manawatū-WhanganuiLife and income cover across Manawatū-Whanganui — agriculture, defence, logistics and education, and why your address never changes the premium.
- Life insurance in CanterburyLife and income cover across Canterbury — construction, agriculture and processing, rural distance, and why your address is never a rating factor.
- Life insurance in OtagoLife and income cover across Otago — education and health in Dunedin, seasonal tourism in the lakes, farming inland, and why your address is not rated.
- Life insurance in SouthlandLife and income cover across Southland — dairy, meat processing and heavy industry, distance to specialists, and why your address is not rated.
Trauma and critical illness
A lump sum on diagnosis of a listed serious condition.
- Standalone vs accelerated trauma coverAccelerated trauma reduces your life cover when it pays. Standalone does not, and costs more. How to choose, and where the buy-back option sits between them.
- What conditions trauma insurance coversWhat conditions NZ trauma policies actually cover, why the number on the brochure means little, and which definitions decide the majority of claims.
- Severity-based trauma coverSeverity-based trauma pays graded amounts by how advanced a condition is. How partial payments work in NZ, and why they make premium comparisons unreliable.
- Trauma buy-back optionsHow a buy-back reinstates the life cover an accelerated trauma claim reduced — the twelve-month wait, the conditions, and why it is not standard in NZ.
- Claiming trauma cover more than onceMost NZ trauma policies pay once and end. How multiple-claim and reinstatement provisions work, what the stand-downs are, and who they matter for.
- Children’s trauma coverChildren's trauma cover on NZ policies — what it costs, what it pays for, the conditions covered, and why the real benefit is a parent taking time off.
- Cancer cover under trauma insuranceHow trauma policies define cancer, which early-stage diagnoses are excluded or paid partially, and what the money is really used for in New Zealand.
- Heart attack and stroke coverHow NZ trauma policies define heart attack and stroke, why troponin thresholds and deficit periods decide claims, and what angioplasty usually pays.
- Trauma insurance vs health insuranceTrauma pays you a lump sum on diagnosis. Health insurance pays providers for treatment. Which NZ households need which, and why the answer is often both.
- Is trauma insurance worth it?An honest look at whether trauma cover earns its premium in New Zealand — who it suits, who should buy income protection instead, and when to say no.
TPD
Cover if you can never work again.
- Own occupation vs any occupation TPDThe TPD definition that decides your claim. How own occupation and any occupation differ in New Zealand, who qualifies for each, and where home duties fits.
- Standalone vs accelerated TPDAccelerated TPD comes out of your life cover when it pays. Standalone does not. How to decide in NZ, and what a claim leaves your family with.
- The home duties TPD definitionTPD cover for people not in paid work. What the home duties definition tests, the sum insured caps, and why a stay-at-home parent still needs cover.
- Loss of independence coverHow loss of independence and activities of daily living benefits work on NZ policies, when the definition replaces an occupational TPD test, and what it pays.
- TPD vs income protectionTPD pays a lump sum when you will never work again. Income protection pays monthly while you cannot work. Which one a New Zealand household needs first.
- How TPD claims are assessedWhat actually happens in a TPD claim — waiting periods, specialist evidence, vocational assessment, and why permanence takes so long to establish.
Income protection
A monthly benefit while illness or injury stops you earning.
- Agreed value vs indemnity income protectionThe difference is what you must prove at claim time. How agreed value, indemnity and loss of earnings cover work in New Zealand, and which suits which income.
- Loss of earnings coverHow loss of earnings income protection works in New Zealand — the reference period, how variable income is measured, and why it suits the self-employed.
- Income protection waiting periodsChoosing a 4, 8, 13 or 26-week waiting period on NZ income protection — how it changes the premium, and the arrears trap people miss.
- Income protection benefit periodsTwo years, five years or to age 65 — how the benefit period changes what NZ income protection is worth, and why short benefit periods fail the worst claims.
- How much income you can insureThe 75% cap on New Zealand income protection, what counts as income for employees and business owners, and why the taxable benefit changes the maths.
- Income protection vs mortgage protectionMortgage protection covers the loan repayment. Income protection covers your whole income. How the two differ in New Zealand and which one to buy first.
- Partial disability benefitsHow partial and proportionate income protection benefits work in New Zealand when you return to work part-time, and the calculations insurers use.
- Are income protection premiums tax deductible?How income protection premiums and benefits are generally taxed in NZ, why agreed value structures can differ, and what to check with your accountant.
- Offsets and clawbacksACC, sick leave and other policies reduce an income protection benefit. How offsets and clawbacks work in New Zealand, and the questions to ask before you buy.
- Booster and top-up benefitsHow booster, supplementary and ACC top-up income protection benefits work in New Zealand, and when they are the right way to structure cover.
- Income protection for shift and seasonal workersInsuring irregular income in New Zealand — shift allowances, seasonal work and casual hours, and how insurers assess earnings that move around.
Mortgage and repayment cover
- Mortgage repayment coverHow mortgage repayment insurance works in NZ — what the monthly benefit covers, waiting and benefit periods, and how it compares with income protection.
- Life cover vs mortgage-specific coverWhether to insure a NZ mortgage with plain life cover or a mortgage-specific policy, and why decreasing cover is usually the weaker structure.
- Bank cover vs adviser-arranged coverBank-sold mortgage cover is one insurer's product under the bank's brand, sometimes assigned to the lender. How it compares with adviser-arranged cover in NZ.
- Redundancy coverRedundancy insurance in New Zealand — the qualifying periods, exclusions and short benefit terms that decide whether it ever pays.
- Do you need cover to get a home loan?Whether a New Zealand lender can require life or mortgage insurance as a condition of a home loan, what they can require, and how to respond at the loan table.
Funeral and final expenses
- What a funeral actually costsWhat actually makes up the cost of a New Zealand funeral, how burial and cremation differ, and how to get real numbers instead of an advertised figure.
- Funeral cover vs life insuranceWhy a small term life policy usually beats funeral insurance for anyone who can be underwritten in New Zealand, and when funeral cover is still the right call.
- Funeral cover without medical questionsHow funeral policies sold without health questions work in New Zealand — the accidental-death-only period, what is still excluded, and who they suit.
- Funeral cover for the over 50sFuneral cover marketed to New Zealanders over 50 — what the advertising leaves out, how premiums behave over thirty years, and what to compare it against.
- Is funeral insurance worth it?An honest assessment of funeral cover in New Zealand — when total premiums exceed the payout, who it genuinely suits, and the alternatives to price first.
- Serious illness coverSerious illness cover in NZ is usually trauma or critical illness cover under another name. How to tell what you are being offered, and what to compare.
Health insurance and KiwiSaver
- Non-Pharmac drug coverThe benefit most New Zealanders buy health insurance for. How non-Pharmac medicine cover works, how limits differ, and the conditions attached.
- Specialists and diagnostic testsWhy specialist and diagnostic cover is often optional on NZ health insurance, what it pays for, and the gap that opens when a policy covers surgery only.
- Health, trauma or income protectionThree products, three different costs of getting sick in New Zealand. How to decide which to buy first when you cannot afford all of them.
- KiwiSaver and life insuranceHow KiwiSaver and life insurance interact in NZ — what happens to your balance on death, serious illness withdrawals, and why one is not a substitute.
Not sure what cover you actually need?
That is the question an adviser is there to answer. Tell us your situation and a licensed New Zealand adviser will compare the market and come back with a written recommendation — including where you can cut cover you do not need.
No cost to you and no obligation. General information only — not personalised financial advice.
Whole-of-market comparison
Advisers quote across the major New Zealand insurers rather than one product range.
Registered advisers
Your enquiry goes to Registered Financial Service Providers, not to a call centre.
No cost to you
The insurer pays the adviser. You pay the same premium either way.
Cover sized to your life
A good adviser will tell you when you are over-insured, not just sell you more.