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

Does life insurance cover natural death in NZ?

Yes. A life insurance policy pays when the person insured dies, and the wordings we read do not distinguish a death from illness from any other death, apart from listed exclusions. "Natural death" is not a defined term in them. What changes the answer is the policy's early window: Momentum's Funeral Insurance pays only for accidental death in its first 24 months, and Quick Life excludes pre-existing conditions and suicide for the first 2 years.

In short

What does "natural death" mean in a wording?

Insurance wordings do not use the phrase. They say what they pay on and then list what they do not. Fidelity Life's LifeProtect cover wording (effective 22 September 2026) says: "We will pay you the sum insured if the insured person dies." Its only exclusion in that document is death by the insured person's own hand within 13 months of the start, an increase or reinstatement (Fidelity Life: LifeProtect Life Cover wording). Chubb Life's Assurance Extra brochure says Life Cover pays if you die or are diagnosed with a terminal illness likely to result in death within 12 months, and lists the same 13-month self-harm exclusion under "What's not covered" (Chubb Life brochure CIG0009 V6). Both documents say other documents, such as the separate terms and conditions, also apply, so read yours. For a wider view of exclusions see life insurance exclusions in NZ.

Side by side: underwritten cover, Quick Life and Funeral Insurance

Underwritten life cover (via an adviser) Momentum Quick Life Momentum Funeral Insurance
Death from illness in the first year Covered, on the terms issued after your health answers Covered if it arises from a new condition; not covered if from a pre-existing condition Not covered; all premiums refunded
Death from illness after 2 years Covered, on the terms issued Covered, except any condition permanently excluded in the schedule Covered after 24 months
Accidental death Covered Covered from the start Covered from the start, at 3 times the benefit, if death occurs within 90 days of the accident
Health questions at application Yes None None
Cover amounts Set by underwriting $50,000 to $300,000 per person at the start $3,000 to $30,000 per person
Entry ages Varies by insurer 18 to 65 40 to 75

Sources: Momentum Quick Life wording (November 2025), Momentum Funeral Insurance wording (17 August 2023).

Momentum Funeral Insurance and the first 24 months

The wording defines an Accident as an unintentional event by violent, external and visible means that directly and solely causes death, and not self-inflicted. In the first 24 months, a death from illness, however sudden, falls outside that definition and pays nothing; Momentum refunds the premiums paid for that person instead. After 24 months the benefit is paid for death from any cause. There is no separate pre-existing condition clause and no separate suicide clause, so the 24-month window is the only early restriction. Increasing your cover, or adding a person, starts a new 24-month window for that increase or person.

Other guaranteed acceptance funeral products have the same shape with different lengths and rules:

Product Early window for death from illness Premiums refunded for that death?
Momentum Funeral Insurance 24 months Yes, all
NZ Seniors and OneChoice funeral cover (issued by Pinnacle Life) 12 months No
Chubb Life Funeral Cover 24 months Yes, 100%
AA Life Funeral Cover (Asteron Life) 24 months Yes, 100%

Compared: four products with published terms, on the early window and refund, as at 20 October 2026, from the insurers' own pages and Momentum's wording. Not every insurer is included, and this is a reading of documents, not a ranking. See the funeral insurance hub and Momentum's Funeral Insurance plan page for entry ages and benefit ranges.

As with any funeral policy, total premiums can end up larger than the benefit, and the benefit may not cover the whole cost of a funeral.

Quick Life and the first 2 years

Quick Life works in two stages. In the first 2 years you are covered for accidental death and any new medical conditions that arise after the policy starts. The wording excludes, for those 2 years, a pre-existing condition and suicide or intentional self-harm "regardless of your mental state". If a life insured dies from a pre-existing condition within 24 months and there is no claim to be paid, premiums are refunded.

The wording defines a pre-existing condition as an illness, condition or symptoms in the 2 years before the policy start, including anything you had treatment or advice for, or symptoms you had "even if undiagnosed", and says it "also includes" very high blood pressure, cholesterol over 7.0, a BMI over 40 or complications related to diabetes. A pre-existing condition is therefore narrower than any death from illness, but the definition reaches back 2 years and includes symptoms you had without a diagnosis. Whether a particular death was linked to something earlier is the insurer's decision on the facts, and the wording gives no worked examples, which is why this is the part to read most carefully.

After 2 years, pre-existing conditions are covered "except for some specific conditions" that can be permanently excluded and are listed in your policy. Quick Life also never pays for death caused by the effects of alcohol or drugs (unless a prescribed drug was taken as instructed), war, insurrection, terrorism, criminal activity, or a dangerous job or pastime defined in the wording. Occupation and pastime are not asked at application, so they matter at claim time. See the Quick Life plan page.

Fully underwritten cover: the early window is replaced by disclosure

The two underwritten wordings above have no early window for illness, only the 13-month self-harm exclusion, but the insurer asks about your health before it offers terms. Asteron says that when a person has an existing condition, it can still offer cover by adding a stand-down period, raising the premium, or excluding the condition permanently or for a set time (Asteron Life). The risk moves to the application: IFSO case notes show insurers avoiding or reducing claims for non-disclosure, including a reduced stroke claim where the insurer applied 50 percent loadings retrospectively (IFSO). Answer completely. See also the difference between accidental death and life cover and why premiums rise.

What happens after the death

On the death of a life insured, Momentum's wordings say the benefit goes to the nominated beneficiary if there is one, otherwise to the policy owner or their estate. Quick Life wording says approved claims are usually paid within 48 hours of approval, and Funeral Insurance within 24 to 48 hours of approval; approval starts that clock, not the date of death. See what happens to a life insurance payout.

How to check before you accept a policy

  1. Find the early window: is there one, how long, and does it restrict illness or only certain conditions?
  2. Find what happens to premiums if death falls inside it (refund or nothing).
  3. Read the definition of pre-existing and the list of permanent exclusions in your schedule.
  4. Check the exclusions that apply at any time.
  5. Use the 30-day free look: Momentum gives 30 days, from the policy start for Quick Life and from the acceptance date for Funeral Insurance, with a full refund if no claim has been made.
  6. Keep premiums up to date; both Momentum wordings say claims are paid only if the policy is active and premiums are paid.

Who we are, and how we are paid

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 how we are paid.

Momentum Life Limited has a financial strength rating of B (Fair) from A.M. Best, affirmed 11 February 2026. Momentum's own table groups B in its "Vulnerable" range, and A.M. Best says the rating is not a recommendation (Momentum: financial strength). The buttons on this page lead to Momentum's online quote. Last reviewed 20 October 2026 by the QuoteHub Adviser Team, from the wordings named below.

Frequently asked questions

Does life insurance pay for death by natural causes?

Yes, in the wordings we read, a death from illness is paid like any other death, subject to the early window and exclusions. For Momentum Funeral Insurance that means after 24 months; for Quick Life it means new conditions are covered from the start and pre-existing conditions after 2 years.

Does life insurance cover accidental death?

Yes, all the products above cover accidental death from the start. Momentum Funeral Insurance pays 3 times the benefit for an accidental death within 90 days of the accident.

What happens to life insurance after death?

Cover for that person ends; under Momentum's Funeral Insurance wording the policy ends on the date the last benefit is paid for the last life insured. The benefit goes to the nominated beneficiary if there is one, otherwise to the policy owner or their estate.

Does terminal illness count?

Quick Life pays on terminal illness expected to lead to death within 12 months. Momentum Funeral Insurance has no terminal illness benefit.

References

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