Taking out life insurance on someone else in NZ
Often yes. New Zealand law does not make you prove an insurable interest: the Insurance Law Reform Act 1985 (s 6) says a life policy is not void because the policyholder has no interest in the life insured. The limits are your insurer's. Momentum's Funeral Insurance lets an adult child own a policy on a parent aged 40 to 75, and Quick Life needs the life insured's consent where a family member owns it.
In short
- Insurable interest, a financial stake in someone's life that some countries require, is not a New Zealand legal test for life policies.
- The practical rules sit in each policy wording: who may own, who may be covered, and whether the person covered must consent.
- Momentum's Funeral Insurance: the life insured must be the owner, the owner's partner or a defined relative, aged 40 to 75 and a New Zealander.
- Momentum's Quick Life: where a parent or sibling owns the policy on someone else, each life insured's consent is required.
- Talk to the person first. Their health and details drive what the insurer will cover and pay.
The law: no insurable interest test
The Insurance Law Reform Act 1985 says: "A contract of assurance on the life of a person is not void or illegal by reason only of the fact that the insured under the contract does not have, or did not have when the contract was entered into, any interest in the life of that person" (s 6) (legislation.govt.nz, latest version as at 1 January 2008). The Contracts of Insurance Act 2024 carries the same rule forward in ss 75 and 76, which apply from 15 November 2027 (not yet in force) (legislation.govt.nz). So you do not need to show that you would lose money if the person died. Advice that you must prove a financial loss before you can insure someone usually describes other countries' rules.
Two roles matter. AIA defines the Policy Owner as the person who "owns and controls the policy and is responsible for payment of premiums", and the Life Assured as "the person who has been insured under the policy" (AIA). They can be different people.
We found no New Zealand statute that requires the life insured's consent, so this page does not say the law requires it. Several wordings and processes do, as below.
What insurers' rules say
| Product | Who can own | Who can be covered | Consent and notes |
|---|---|---|---|
| Momentum Funeral Insurance | A natural person who is a New Zealander; not a business | The owner, the owner's Partner, or a Relative; up to four lives on a family policy; each aged 40 to 75 and a New Zealander | The wording we read has no consent clause. Benefits are paid to the Policy Owner |
| Momentum Quick Life | Usually the life insured; may be owned by immediate family "limited to parents or siblings"; ownership can pass to someone at least 16 | Ages 18 to 65, single or joint with a partner | Where a family member owns a policy covering someone else, "the consent of each Life Insured is required" |
| AIA Living (underwritten) | Policy Owner, who can differ from the Life Assured | Ages 10 to 70 for Life Cover | Written authority from the Policy Owner is needed to change the policy |
Sources: Funeral wording, Quick Life wording, AIA.
In the Funeral wording a Relative is a New Zealander who is the parent, grandparent, brother, sister, uncle, aunt, nephew, niece, or natural or legally adopted child of the Policy Owner or of the Owner's Partner. A Partner is the legal husband or wife, someone living with you as your de facto spouse, or a civil union partner. A Quick Life policy owned by a child for a parent is not listed in the wording, so ask Momentum before assuming it works.
Can an adult child own Funeral Insurance on a parent?
Yes under Momentum's wording, because a parent is a Relative of the Policy Owner. The details matter:
- The parent must be 40 to 75 and a New Zealander at application. Momentum takes no new applicants over 75, so this does not help for an older parent; see funeral insurance for parents and life insurance for parents.
- Acceptance is guaranteed, with no health questions. For the first 24 months only accidental death within 90 days of the accident is paid; for any other death in that time nothing is paid and the premiums for that person are refunded.
- The benefit ($3,000 to $30,000, and three times that for an accidental death) is paid to the Policy Owner, or the nominated beneficiary. Momentum "can't pay a Benefit directly to a company, charity or other organisation", so a funeral director cannot be named.
- Total premiums can exceed the benefit, and the benefit may not cover the whole funeral. The owner pays the premiums.
- The wording does not say whether Momentum asks for the parent's agreement at application. Ask Momentum.
If the owner dies, the Funeral wording says benefits go to the beneficiary the owner nominated or, if none, to the executor of the owner's estate. See probate in New Zealand and paying for a parent's funeral.
Why consent matters even where no law requires it
Insurers decide on the information they get. Quick Life's wording says it relies on the accuracy of what "you and any life insured provide", and that incorrect, incomplete or misleading information can lead to a declined claim, a reduced benefit or cancellation. IFSO adds that if you leave out medical history, even by accident, the claim can be declined and the policy treated as if it never existed (IFSO). A policy that an owner built on guesses about another person's age, smoking or health is exposed. Fidelity's LifeProtect wording requires a claimant to "authorise the disclosure" of the insured person's personal information held by other parties, so a claim can involve the insured person's information whatever happened at purchase.
A policy can also outlast a relationship. Under the Property (Relationships) Act 1976, the part of a life policy's value or proceeds that belongs to the relationship is relationship property (s 8(1)(g)), and the court can make orders about policies (s 30). Nothing divides automatically. Seek legal advice about ownership if a relationship ends (legislation.govt.nz).
Other relationships
- Partner or spouse. Joint cover is available. Quick Life covers each person separately, so a payout for one leaves the other covered. See joint life insurance.
- Boyfriend, girlfriend or friend. Under the Funeral wording a de facto partner living with you is a Partner; a friend is not a Relative. Underwritten insurers set their own rules.
- Business partner or employee. This is a business protection question, mostly arranged through an adviser. See business life insurance tax.
- Someone you are separated from. The text we read does not say how a Partner is treated after separation. Ask the insurer.
If you decide to go ahead
- Ask the person, and agree who owns the policy and who pays.
- Check the product's own rules for who may be covered.
- Name a beneficiary, because only the owner can nominate or change one on Quick Life.
- Keep the person's details accurate.
- Put it in your will and tell the executor.
Where Momentum fits
Momentum Life sells Funeral Insurance and Quick Life. Only Funeral Insurance is described above as open to an adult child as owner, and both restrict their early period: the first 24 months for Funeral (accidental death only) and the first 2 years for Quick Life (pre-existing conditions and suicide excluded). Momentum Life Limited has an A.M. Best financial strength rating of B (Fair); see its financial strength page. Read Funeral Cover first, then use the buttons on this page for Momentum's own application.
Frequently asked questions
Can I put life insurance on anyone?
The law does not require an insurable interest, but each insurer decides who can be covered and who can own. Momentum's Funeral Insurance limits covered people to the owner, a partner or a defined relative.
Can you get life insurance on someone without their consent?
We found no statute that says either way. Quick Life's wording requires each life insured's consent when a family member owns the policy. The Funeral wording we read has no such clause. We would not do it without telling the person, and nothing on this page suggests insuring an adult without their knowledge.
Can my child take out funeral insurance for me?
On Momentum's wording, yes if you are 40 to 75 and a New Zealander. The child owns the policy and receives the benefit.
Can I buy cover on my ex-husband?
No source on file says. Ask the insurer, and see a lawyer if the policy is relationship property.
Financial advice is provided by Craig Smith Business Services Limited, trading as Smiths Insurance & KiwiSaver, a licensed Financial Advice Provider (FSP712931). This page is general information, not advice. QuoteHub is a Momentum Life partner, and Smiths Insurance & KiwiSaver may receive a commission if you buy through our link; see our disclosure and how we are paid. Written by the QuoteHub Editorial Team from the sources below; last reviewed 20 October 2026.
References
- Insurance Law Reform Act 1985, retrieved 20 October 2026
- Contracts of Insurance Act 2024, retrieved 20 October 2026
- Property (Relationships) Act 1976, retrieved 20 October 2026
- Momentum Life: Funeral Insurance Policy Wording (17 August 2023), retrieved 17 October 2026
- Momentum Life: Quick Life Insurance Policy Wording (November 2025), retrieved 17 October 2026
- Momentum Life: Financial strength, retrieved 20 October 2026
- AIA New Zealand: Life insurance, retrieved 20 October 2026
- Fidelity Life: LifeProtect Life Cover wording, retrieved 20 October 2026
- IFSO: Life insurance, retrieved 20 October 2026
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