Written by · Reviewed by Smiths Insurance & KiwiSaver — licensed Financial Advice Provider (FSP712931) · Last updated 2026-10-20

Getting life insurance through a bank or a licensed adviser

In New Zealand, a bank's life insurance is underwritten by an outside insurer, and each bank's own page names one: ANZ and Chubb Life, ASB and AIA, Kiwibank and nib, Westpac and Fidelity Life. A licensed adviser who deals with more than one insurer can compare several. Neither route is better as a fact. They differ in choice, in how the seller is paid and in who helps if something goes wrong.

In short

Who is behind each bank

These details are from each bank's own pages, read on 20 October 2026, except Westpac, which comes from Fidelity's Westpac page because Westpac's own site did not load.

Bank Insurer named Notes
ANZ Chubb Life Insurance New Zealand Limited Cover is "underwritten by third party insurers"; life cover includes an advance payment for immediate expenses such as a funeral; ANZ Life & Living is closed to new customers (ANZ)
ASB AIA New Zealand Limited "Underwritten and administered by AIA New Zealand Limited" (ASB)
BNZ Partners Life BNZ says "We no longer provide life insurance"; Partners Life provides and underwrites for its customers (BNZ)
Kiwibank nib nz limited nib pays Kiwibank referral fees; cover includes a $15,000 funeral expenses lump sum on death or terminal illness (Kiwibank)
Westpac Fidelity Life LifeProtect underwritten by Fidelity, commission paid (Fidelity: Westpac)

We found no guaranteed acceptance funeral product sold by any of them. More detail is on our pages for ANZ, ASB, BNZ, Kiwibank and Westpac.

Product choice

A bank page names one insurer's cover, so you are choosing that product or leaving. An adviser can approach several insurers. The FMA says advisers "deal with the insurers on your behalf" and that many work with more than one insurer (FMA: Insurance advice). But a given adviser may not use every insurer, and some advice firms cover only their own products: Momentum Life is itself a licensed Financial Advice Provider whose advice covers only Momentum's products (Momentum Life: Financial strength). Whoever you speak to, ask which insurers they can place cover with, and why.

How you apply and are assessed

We have no published source that bank applications are simpler than adviser applications, so we make no claim either way. What is sourced is how insurers assess. On life cover, Fidelity's and Chubb's published guides set no mandatory medical evidence up to $500,000 at any age band, and Code A medical evidence from $500,001 at ages 61 and over; disclosed conditions trigger more (Fidelity, Chubb). Those are the insurers' published rules, and we found nothing showing they differ by sales channel. Whatever you are asked, answer completely. See what drives life insurance premiums.

How each is paid

Bank Licensed adviser
Paid by The bank may be paid commission or referral fees by the insurer Most advisers receive commission from the insurer, as a percentage of your premium
What you can see Kiwibank's and Westpac's pages mention referral fees or commission Advisers must disclose commission on a recommendation
Fee Not published in the sources we read Some also charge a fee for complex needs

The FMA says upfront commission "can be as high as 200% of the annual premium, including bonus commissions", and ongoing commission "could range from 5 to 25%" depending on the upfront; these come from its 2016 review. Some insurers claw back commission for around two years if you cancel, and some advisers pass that on (FMA: Insurance advice). We have no insurer's actual commission terms on file.

Ask whichever seller you use how much they are paid. QuoteHub is a Momentum Life partner, and Smiths Insurance & KiwiSaver may receive a commission if you buy through our link. See how we are paid and our disclosure. That means we are not a neutral third party on Momentum.

Premiums

We have no data comparing a bank's price with an adviser's price for the same insurer, so we cannot say which is cheaper. What is documented is the spread across insurers. QuoteHub's Premium Index shows cost differs a lot by age, smoking status and insurer; see life insurance quotes. Stepped premiums rise every year, while level premiums start higher and stay fixed for a term. Read stepped versus level premiums.

Claims and who helps

At claim time the insurer decides, whichever route you came through. If you want help, the FMA suggests asking an adviser about their claims process and how good insurers have been at paying out. Ask any seller, bank or adviser, whether help with a claim is included and who you would call. For disputes, every business offering retail financial services must belong to an approved scheme, and the FMA lists four: the Banking Ombudsman Scheme, IFSO, Financial Services Complaints and the Financial Dispute Resolution Service. Complain to the provider first (FMA: Disputes).

Ownership, switching and refinancing

Mortgage cover can mean two different things: life cover sized to the loan, or monthly repayment cover that pays if you are disabled. They are different products. We found no published rule for what happens to bank-sold cover if you change lenders, so ask: Is this a policy I own with the insurer? Does it continue if I refinance? If you replace cover, the FMA says keep the old policy running until the new one is in force, and watch for new qualifying periods, pre-existing condition exclusions and different premiums (FMA: Insurance). A new insurer sees your full history (IFSO).

When a direct or guaranteed acceptance policy fits

Neither a bank nor an adviser is needed for a guaranteed acceptance policy, which accepts you without health questions. Momentum Life's Quick Life takes ages 18 to 65, and Funeral Insurance 40 to 75. They suit people who would be declined or heavily loaded elsewhere, or who want cover in place quickly. In return the first two years are restricted: Quick Life excludes pre-existing conditions and suicide for 2 years, and Funeral Insurance pays only for accidental death for 24 months (premiums are refunded for another cause). Total premiums can exceed the benefit, and the benefit may not cover a funeral in full. A healthy person can usually get more cover for less with fully underwritten cover through an adviser. See guaranteed acceptance versus full medical and Quick Life.

Momentum Life Limited's A.M. Best rating is B (Fair): see its financial strength page. The buttons on this page open Momentum's online application. Advice is provided by Craig Smith Business Services Limited, trading as Smiths Insurance & KiwiSaver, a licensed Financial Advice Provider (FSP712931). Our list of questions to ask about life insurance works for either route.

Frequently asked questions

Is bank life insurance good?

It can be, depending on the insurer behind it and your needs. A bank's cover is underwritten by an outside insurer, so judge it on that insurer's terms, price and financial strength rather than the bank's name.

Is bank life insurance cheaper than an adviser's?

We found no data that compares the two for the same insurer, so we cannot say.

Do I need a bank to get life insurance?

No. You can apply direct to an insurer, through a licensed adviser, or online with a guaranteed acceptance product.

References

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