9 Apr 2025
Understanding Seniors Life Insurance
Learn about senior's life insurance, its key features, and how it can safeguard your financial future..
Read more about Understanding Seniors Life Insurance
Better LivingLife insurance explained
Life insurance is a type of policy that you can get to help reduce the financial burden on your loved ones if you die suddenly or are diagnosed with a terminal illness with limited time to live, usually 12 or 24 months.
Even if you’re not the main provider of the household, or if you are comfortably retired, it’s not hard to imagine how your family could be affected financially if you were to pass away. On top of ongoing living expenses, your loved ones could be left with additional costs like organising your funeral, legal fees associated with finalising your estate and making any necessary adjustments to manage their cost of living. Life insurance is designed to assist in making this transition and loss a lot easier financially for the people you care about.
Seniors Life Insurance is designed specifically for people aged 45–79 to apply, with no medical assessments, blood tests or complicated paperwork required. Just answer eight questions about your health over the phone and once approved you can have peace of mind that your family will be financially protected until your 85th birthday.
How does life insurance work?
When you are covered by a life insurance policy, your provider pay’s the benefit amount to your loved ones in the event of your passing, or to you if you were to become terminally ill, depending on the circumstances. This money can be used however needed, such as to help your family cover things like everyday living costs, any outstanding debt, or final costs, including funeral or estate fees.
Learn more: How does life insurance work?
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Application
- The insurance process starts by you choosing the type and amount of cover you will need.
- Your insurer will ask a number of questions to assess whether they can offer you cover, and how much that cover will cost.
- Your insurer will then give you a quote based on your answers to these questions.
- When you first set up your policy, you can nominate beneficiaries, who can make a claim to receive your benefit payment if you pass away.
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Approval
- Your insurer will assess your application.
- Once cover is approved, your life insurance policy will be issued.
- Once activated, you are covered under the terms of the policy.
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Making a claim
- Depending on the circumstances, if you’re diagnosed with a terminal illness, or if you pass away, you or your nominated beneficiaries can submit a claim.
- The claim will then be assessed by your insurer.
- An advance payment can be made to cover funeral costs if more time is needed to complete the assessment.
- Once the claim is approved, the cover amount will be paid to you or your nominated beneficiaries.
Everyone’s situation is different, so it’s important to speak with your insurer to make sure you understand your cover. Call New Zealand Seniors now to speak with one of our friendly team members and get a personalised quote.
What is the main purpose of life insurance?
The main purpose of life insurance is to protect you and your loved ones financially if you pass away or are diagnosed with a terminal illness.
If you pass away, your life insurance policy can provide a lump sum payment to your chosen beneficiaries in the event of your passing, which can provide financial relief. They can use the money to pay funeral costs, outstanding debts, mortgage payments, or however they need during that difficult time.
If you are diagnosed with a terminal illness (usually defined as being given 12-24 months or less to live by a specialist medical practitioner), your life insurance payout can be used however needed, such as to help pay for the cost of medical treatment or palliative care. This can give you the freedom to continue to spend quality time with your loved ones and build lasting memories for them to cherish, while providing funds to go towards paying medical or other bills.
The benefits of life insurance
- Peace of mind: Life insurance can provide the peace of mind that your loved ones have financial protection in the event of your passing, which can allow you to live with less worry about their future if the worst were to happen.
- Flexibility: Many life insurance policies offer flexible options, such as the ability to opt for a single or joint cover, add optional covers, choose your payment frequency, and adjust the cover amount to suit your changing needs and circumstances.
- Terminal illness cover: Depending on the circumstances, life insurance policies can include provisions for terminal illness, allowing you to access your death benefit early to cover medical expenses and any other costs that are incurred during this time.
- No tax on life insurance payouts: Life insurance payouts may be tax-free in New Zealand (depending on your policy type), ensuring that your beneficiaries receive the full benefit amount without the burden of additional taxes. Always seek professional advice regarding tax.
- Assist toward debt: The payout from a life insurance policy can be used however required, including to pay off your outstanding debts, such as credit card balances, personal loans, or a mortgage, helping relieve your family financially at a time of stress.
Learn more: Benefits of life insurance
At New Zealand Seniors, we’re dedicated to understanding older Kiwis. Learn more about Seniors Life Insurance and discover how it can help protect you and your loved ones.
The different types of life insurance
There are many different types of life insurance policies, including:
All of life insurance
All of life insurance is a life insurance policy that covers you for death or, depending on the circumstances, a terminal illness in which the term of cover is for as long as you live and continue paying premiums, until you make a claim or decide to cancel.
Term life insurance
Term life insurance covers you for death or (depending on the policy) a terminal illness for a set period of time. The cover period is usually a defined number of years or until you reach a certain age, make a claim or cancel the policy.
Group life insurance
Group life insurance is cover that is provided to a group of people, usually employees by their employer. This type of life insurance is often not able to be customised to individuals because the policy is bought as part of a package to cover multiple people. This cover usually expires when you retire or reach a certain age.
These different types of policies each have their own benefits and features that you should consider. As retirement approaches, many Kiwis find that their needs and financial plans can change quite dramatically. If you’re worried about what life’s later stages may bring, it’s not too late to set plans in place for financial protection and consider life insurance.
Act now to protect the financial future of your whānau
What does life insurance cover?
Life insurance covers you for death or, depending on the policy, diagnosis of a terminal illness where your doctor advises that you have limited time to live. With an active policy, when you pass away your beneficiaries can receive a payout if death occurs by any cause. In this instance, death due to suicide or terminal illness because of self-inflicted injury may be excluded for a period of time. For example, with Seniors Life Insurance, it is excluded for the first 13 months.
Your beneficiaries can spend the benefit amount however they need, including on things such as:
- everyday expenses such as regular bills, groceries and other household essentials;
- outstanding debts such as a mortgage, credit card or personal/car loan;
- childcare, or the cost of education for your children or grandchildren; and
- end-of-life expenses such as medical care or funeral costs.
If you receive a terminal illness diagnosis and need to claim, your benefit amount is paid to you in advance and can be used however needed, such as to cover ongoing medical treatment or to supplement or replace your income so you can focus on spending time with your loved ones instead of worrying about bills.
Seniors Life Insurance allows you to apply between the ages of 45–79, protecting you and your family until you turn 85. When your family makes a claim, 20% of the benefit amount may be paid in advance, so your loved ones don’t have to worry about the cost of your funeral or other final expenses. And if you pass away because of an accident, your benefit amount is tripled – up to $600,000. Also, if you are given a terminal illness diagnosis with less than 24 months to live, you receive your benefit amount in advance as a lump sum payment. You can use these funds to make your life more comfortable, spend quality time with your family, and get the care you need.
Learn more about Seniors Life Insurance
What isn’t covered by life insurance?
To see exactly what’s excluded from your policy, always read the Policy Document for all terms and conditions, exclusions and any waiting periods. In some cases, your insurer may provide general cover but let you know that a special exclusion applies, such as no cover is valid if you die while doing something risky like skydiving. With Seniors Life Insurance, self-inflicted injury that results in your death or terminal illness¹ within 13 months of the policy commencement date is excluded.
Here are some commonly asked questions (and their answers) about what is and isn’t covered under life insurance:
Does life insurance cover natural death?
Life insurance generally covers natural death. With Seniors Life Insurance, you have cover for death by any cause, excluding suicide for the first 13 months of your policy’s start date.
Does life insurance cover cancer?
Life insurance usually covers death as a result of illnesses like cancer. If a specialist medical practitioner diagnoses you with cancer that is terminal, your insurer may pay out the benefit amount in advance. For example, with Seniors Life Insurance, if you’re diagnosed with less than 24 months to live, then you may be paid your benefit amount as a lump sum. You should always check your Policy Document for full details on what your policy covers.
Does life insurance cover funeral costs?
Once your beneficiaries submit a claim and receive the benefit amount, they can spend it in any way they need, including to cover the cost of your funeral and to cover any expenses related to your estate. With Seniors Life Insurance, your beneficiaries may receive a 20% advance payout while the claim gets processed. This can be used for funeral costs so that they can give you the farewell you deserve without delays or distress.
Does life insurance cover dental?
Life insurance typically doesn’t cover dental expenses. It’s designed to provide financial support to your family after your death, for however it is required such as things like funeral costs, outstanding debts, and ongoing costs. Dental expenses are usually covered by health insurance.
Does life insurance cover accidental death?
Life insurance normally covers accidental death. For instance, with Seniors Life Insurance, you receive triple the payout amount, up to $600,000, if pass away as a result of an accident.
Does life insurance cover medical bills?
Life insurance payouts can be used however needed, including to cover medical bills, and even palliative care if you’re diagnosed with a terminal illness. With Seniors Life Insurance, if you’re diagnosed with less than 24 months to live, you receive the benefit amount in a lump sum payment that can go towards covering your medical treatments and anything else you might need.
What types of death does life insurance cover?
Life insurance can cover both natural and accidental deaths as well as suicide (after a waiting period has passed). For more detailed information, always refer to your Policy Document to better understand any inclusions and exclusions.
Learn more: Life insurance FAQsFrequently Asked Questions
What is the difference between life insurance and health insurance?
Life insurance insures the policyholder against the eventuality of their own passing, with the agreed benefit amount being paid to nominated beneficiaries to use however required. Health insurance typically only covers out-of-pocket medical expenses, including ambulance cover when required.
Life insurance is generally a contract between an individual and a life insurance company where the insurer provides financial protection that can assist the financial security of your family after you’re gone. This payment can be used to pay anything such as daily living expenses, mortgage repayments, school fees, and home modifications.
Health insurance is designed to help cover the cost of medical treatments and services for you and your family, to assist with costs for hospital bills, medicines or medical treatment not covered by the public health system or can provide access to private healthcare facilities.
What is the difference between life insurance and funeral insurance?
While life insurance is designed to soften the blow to your family’s finances when you are no longer there to provide for them, funeral insurance is designed specifically to cover the cost of a funeral or other final expenses should you pass away.
Life insurance typically comes with the ability to apply for a large benefit amount to cover longer term costs like the mortgage, outstanding bills, or to maintain your family’s lifestyle.
Funeral insurance on the other hand, can offer a payout amount that is designed to cover funeral costs, and can be a great way to help your family with any immediate final expenses associated with your passing.
Considering life insurance?
Why might I consider life insurance?
Life insurance may be something worth considering for you and the people in your life that depend on you financially. This can include your partner and children – people who matter to you and who you want to protect from any financial difficulty, should the worst happen, and you pass away unexpectedly.
Everyone’s situation is unique. If you are no longer there to support your family, they may need to consider how they will meet their daily expenses, and their lifestyle may have to change to ensure bills are paid on time, such as the mortgage, electricity and water bill, not to mention groceries, school fees, and having a little rainy-day fund. A life insurance payout can help your family manage these costs and maintain the standard of living they’re used to.
At New Zealand Seniors, we believe insurance should meet your needs, not someone else’s. That’s why we focus on providing beneficial cover for Kiwis over 50.
With Seniors Life Insurance, NZ residents aged 45 to 79 can apply for up to $200,000 cover, which means you can protect your family financially until you turn 85. You don’t need to take a blood test or fill out any complicated paperwork to apply. Just answer eight questions about your health, then decide on the amount of cover that works for you and your loved ones – it’s that simple!
Learn more: Life insurance for seniors explained
How much does life insurance cost in New Zealand?
How much your life insurance costs will depend on your personal circumstances and the level of cover you choose. To find out how much you’ll pay, you can request a quote from a few insurers and compare prices. Every insurer has their own process, but they’ll usually ask you about the level of cover you want, your age, gender, lifestyle, health, and if you're applying for a single or joint policy. With Seniors Life Insurance, you only need to answer eight health questions to apply for cover.
To work out how much life insurance you need, you may want to involve your loved ones in the conversation. Speak to them to work out how much could be enough for them to live comfortably on considering things such as how much mortgage is owing, any other outstanding debts, the cost of your funeral and any money available to them such as your savings accounts, investments or KiwiSaver.
Learn more: How much does life insurance cost?
Is life insurance tax deductible?
Life insurance premiums are usually not tax-deductible in New Zealand, depending on the policy you have. This means that you can’t claim a refund for the premiums you’ve paid when filing your tax return. You should seek advice from a tax agent on your individual circumstances.
Learn more: Is life insurance tax deductible?
How can New Zealand Seniors help?
With New Zealand Seniors, you can tailor your policy to suit your individual needs and budget. Choose the level of cover you need, and rest assured knowing you’re backed by a respected and award-winning insurer.
Benefits of choosing Seniors Life Insurance
Flexible cover amount that suits you
Choose how much you or your family receive if you pass away or become terminally ill. You can set a benefit amount from $10,000 up to $200,000.
Easy to apply with no medicals
Simply answer eight questions about your medical history over the phone. Once approved, you can get covered in minutes.
Immediate cover
Once your policy is set up, you’ll be covered straight away for death by any cause, and for terminal illness1 (excluding suicide for the first 13 months).
20% advance payout to cover funeral costs
When your family makes a claim, 20% of the benefit amount may be paid in advance, so they won’t have to worry about the cost of your funeral or other immediate expenses.
Triple payout for accidental death
Your family’s benefit amount will be tripled if you pass away from an accident, helping with any last-minute expenses they might face.
Your own personal claims specialist
If you or your family need to make a claim, we’ll assign you a dedicated claims specialist to look after everything. No need to explain things to multiple people.
We’ll keep your premiums manageable
Unlike some life insurance policies, your annual premium increase won’t be based on your age which will help with budgeting later in life. Plus, we offer lower starting premiums for non-smokers.
Cover for when you need it most
We know that the older you get, the more you have to protect, so Seniors Life Insurance allows you to apply from age 45 to 79, protecting you and your family until you turn 85.
How to get life insurance
If you’re a New Zealand resident aged 45 to 79, the process is quite simple:
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1 Request a quote
Answer eight questions about your health and we’ll get you a quote in minutes.
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2 Choose your cover
Tailor your policy and choose the level of cover you need.
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3 Get covered
Rest easy knowing the people you care about most are in safe hands.
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Better Living- Terminal illness with diagnosis of 24 months or less to live.
How can we help?
To find out more about New Zealand Seniors,
speak to one of our friendly insurance specialists now