How to Claim on Life Insurance in NZ: Step-by-Step Guide | QuoteHub

By QuoteHub Editorial Team · Updated 2025-12-01

How to Claim on [Life Insurance](/life-insurance) in NZ: A Step-by-Step Guide

Making a life insurance claim is something most people never want to think about. But when the time comes, knowing exactly what to do, who is responsible, and what paperwork is needed can remove a great deal of stress during an already difficult period.

This guide walks through the entire life insurance claims process in New Zealand, from the first phone call through to receiving payment. We also cover common reasons claims are declined, how to protect yourself, and where to turn if things go wrong.

Who Can Make a Life Insurance Claim?

The person who makes the claim depends on how the policy was set up.

If the policy is owned by another person (e.g., a spouse or partner): The policy owner lodges the claim directly with the insurer. Because they already own the policy, the process tends to be more straightforward.

If the policy is owned by the deceased (and paid to their estate): The executor or administrator of the estate lodges the claim. This means the will needs to be located, and in some cases, probate may be required before the insurer can release funds.

If the policy names a specific beneficiary: Some policies allow the policyholder to nominate a beneficiary. In this case, the named person contacts the insurer to begin the claim.

If there is no will and the estate is valued over $15,000: A court-issued letter of administration may be required before the insurer can pay out. This can add weeks to the process, which is one reason estate planning matters.

In all cases, an insurance adviser (if one was involved in setting up the policy) can assist the claimant through the process.

Step-by-Step Claims Process

Step 1: Locate the Policy Documents

Before contacting the insurer, find the policy document or policy schedule. This contains the policy number, the name of the insurer, the type of cover, the sum insured, and any specific conditions or exclusions.

If you cannot find the documents, don't worry. The insurer can look up the policy using the policyholder's name and date of birth. Your financial adviser will also have records of the policy on file.

Tip: Keep policy documents in a secure but accessible location, such as a digital folder shared with a trusted family member or your adviser.

Step 2: Notify the Insurer Promptly

Contact the insurance company as soon as reasonably possible after the death or diagnosis. You can usually do this by:

• Phoning the insurer's claims line directly
• Lodging a claim through the insurer's website
• Contacting your financial adviser, who can notify the insurer on your behalf

Most policies require notification within a reasonable timeframe. While there is typically a window of several months, it is best to make contact early so the insurer can guide you through their specific requirements.

Step 3: Complete the Claim Form

The insurer will provide the appropriate claim form. Different forms apply depending on the type of claim:

Fill in the form carefully and ensure that all names, dates, and details match exactly what appears on official identification documents. Even small discrepancies (such as a middle name appearing on one document but not another) can cause delays.

Step 4: Gather and Submit Supporting Documents

This is the step where most delays occur. Having your documents ready in advance makes a significant difference.

Documents required for a death claim:

Documents required for a terminal illness claim:

Documents must typically be certified by a Justice of the Peace, lawyer, court registrar, or police officer.

Step 5: Claim Assessment

Once the insurer has received all documents, the assessment process begins. For straightforward death claims, this can take as little as one to two working days.

During the assessment, the insurer may:

• Verify the cause of death against the policy terms
• Contact the deceased's GP to obtain medical records
• Check that all information disclosed at the time of application was accurate
• Confirm the claimant's legal authority to receive funds

If additional information is needed, the insurer will contact you. This is where having an adviser involved can be particularly helpful, as they can liaise with the insurer and follow up on your behalf.

Step 6: Receive Payment

Once the claim is approved, the insurer prepares a Claim Discharge Form. This is sent to the policy owner, beneficiary, or executor for signing. After the signed form is returned, payment is made by direct credit to the nominated bank account.

For most claims, the overall process takes approximately 5 to 10 working days from the point where all documents are submitted. However, several factors can extend this timeframe.

Expected Timeframes

Claims Acceptance Rates in New Zealand

While individual insurer acceptance rates are not publicly broken down in detail, the Financial Services Council (FSC) provides aggregate data. As of 30 June 2025, total life insurance claims accepted rose 21% quarter-on-quarter to nearly $350 million. By 30 September 2025, total industry premiums reached a record $3.26 billion.

The vast majority of legitimate claims are paid. Claims are typically declined only where there is a clear issue with disclosure, policy exclusions, or documentation, not as a matter of course.

Common Reasons Life Insurance Claims Are Declined

Understanding why claims fail is the best way to make sure yours does not. The most common reasons include:

1. Non-disclosure of [Pre-existing Conditions](/blog/life-insurance-pre-existing-conditions-nz)

This is the single most common reason for declined claims in New Zealand. When you apply for life insurance, you are asked detailed questions about your health, lifestyle, and medical history. If you fail to disclose a relevant condition (whether deliberately or accidentally), the insurer may have grounds to decline the claim.

For example, if you did not mention a history of high blood pressure and later died from a cardiovascular event, the insurer could argue that they would not have offered the same terms had they known.

2. Policy Exclusions

Every policy has exclusions. Common exclusions include:

• Death within a specified period after policy commencement (stand-down periods)
• Self-inflicted injuries within a defined exclusion period
• Death resulting from participation in certain high-risk activities
• Pre-existing conditions that were specifically excluded at underwriting

Always read the exclusions section of your policy document carefully.

3. Policy Had Lapsed

If premiums were not paid and the policy lapsed before the event, there is no valid policy to claim against. Most insurers provide a grace period (typically 30 days) for late payments, but beyond that, cover ceases.

4. Incorrect or Incomplete Documentation

Claims can be delayed or initially declined if documents are not certified correctly, names do not match across documents, or required paperwork is missing.

5. Lack of Legal Authority

If the estate requires probate and the claimant has not obtained it, the insurer cannot legally release funds. This is particularly relevant for estates valued over $15,000.

How to Avoid a Declined Claim

The good news is that most declined claims are preventable. Here are practical steps you can take now.

Be completely honest on your application. Disclose everything, even conditions you think are minor or were a long time ago. If in doubt, disclose it. Your adviser can help you understand what is relevant.

Review your policy regularly. Life circumstances change. Make sure your policy still reflects your situation, and update your insurer if anything significant has changed (such as taking up a new high-risk hobby).

Keep your premiums up to date. Set up an automatic payment and check periodically that it is still going through. A lapsed policy provides no protection.

Store your documents securely. Make sure a trusted person knows where your policy documents are and who your insurer is.

Work with an authorised financial adviser. An adviser ensures your application is completed accurately, that you understand your exclusions, and that your cover remains appropriate over time.

The Role of Your Adviser During a Claim

A common misconception is that financial advisers are only involved when you buy a policy. In reality, a good adviser provides significant support during the claims process.

Your adviser can:

• Notify the insurer on your behalf and manage initial paperwork
• Help gather and organise the required documents
• Liaise with the insurer's claims team throughout the assessment
• Follow up if there are delays or requests for additional information
• Advocate on your behalf if the claim is queried or initially declined
• Explain the outcome and next steps clearly

This support comes at no additional cost to you. Advisers are remunerated by the insurer, not the claimant. At a time when you are dealing with grief or serious illness, having a professional handle the process can make a meaningful difference.

What to Do If Your Claim Is Declined

If your claim is declined and you believe the decision is wrong, you have several options.

1. Request a Formal Review

Ask the insurer to provide their reasons in writing and request an internal review of the decision. Insurers who are members of the Insurance Council follow the Fair Insurance Code, which includes commitments to fair claims handling.

2. Obtain a Deadlock Letter

If the internal review does not resolve the matter, ask the insurer for a "deadlock letter." This confirms that the insurer's internal complaints process has been exhausted and opens the door to external dispute resolution.

3. Escalate to FSCL or IFSO

All financial service providers in New Zealand must belong to an approved dispute resolution scheme. The two main schemes are:

These schemes can investigate your complaint, make binding decisions on the insurer (up to certain financial limits), and provide a resolution. The process is free for consumers.

4. Seek Legal Advice

For complex or high-value disputes, independent legal advice may be appropriate. Some community law centres offer free initial consultations.

Tips for a Smooth Claims Experience

1. Contact your adviser first. If you have one, they can coordinate the entire process.
2. Gather documents early. Start collecting ID, the death certificate, and the will as soon as practically possible.
3. Use exact details. Ensure names on claim forms match identification documents precisely.
4. Keep copies of everything. Retain copies of all documents you submit.
5. Follow up regularly. If you have not heard back within the expected timeframe, call the insurer or ask your adviser to follow up.
6. Ask questions. If anything is unclear, ask. There is no such thing as a silly question during a claim.

Frequently Asked Questions

How long does it take to receive a life insurance payout in NZ?

For straightforward claims where all documentation is in order, the process typically takes 5 to 10 working days from submission. The assessment itself often takes just one to two days once all paperwork is received. Complex claims involving medical reviews or probate can take several weeks.

Can I claim on life insurance if the policyholder did not have a will?

Yes, but the process is more complex. If the deceased did not leave a will, the estate is distributed according to the Administration Act 1969. You may need to apply to the High Court for letters of administration, which can add time and cost to the process.

Do I need to pay tax on a life insurance payout in New Zealand?

No. Life insurance payouts in New Zealand are generally not subject to income tax or capital gains tax. The full sum insured is paid to the beneficiary or estate without any tax deduction.

What happens if the policyholder did not disclose a medical condition?

The insurer may decline the claim if they can demonstrate that the non-disclosed information was material, meaning it would have changed the terms of the policy or led them to decline cover altogether. This is why full and honest disclosure at application is so important.

Can I make a claim if the policy was recently taken out?

Yes, provided the policy was in force at the time of the event and no exclusions apply. Some policies include stand-down periods for certain causes of death (such as self-inflicted injury), but there is no general rule preventing claims on new policies.

What if I disagree with the amount paid out?

If the payout does not match what you expected, request a detailed explanation from the insurer. The amount should match the sum insured stated on the policy schedule. If there is a discrepancy, your adviser or the relevant dispute resolution scheme can help.

Does it cost anything to make a life insurance claim?

There is no fee to lodge a claim with your insurer. However, you may incur costs for obtaining certified copies of documents, death certificates, or medical reports. If the claim is managed through your adviser, there is no additional fee for their assistance.

Key Takeaways

• The claims process in New Zealand is relatively straightforward when you are prepared and your documents are in order.
• Non-disclosure at the application stage is the most common reason claims are declined, and it is entirely preventable.
• Having an authorised financial adviser involved can significantly reduce stress and improve the speed of the process.
• If a claim is declined, free external dispute resolution is available through FSCL or IFSO.
• The vast majority of legitimate claims are accepted and paid.

References

• Financial Markets Authority (FMA) , Insurance guidance
• ACC New Zealand
• Sorted.org.nz , Insurance guides
• Insurance & Financial Services Ombudsman (IFSO)
• Consumer Protection NZ
• ACC New Zealand , What we cover
• IRD , Income tax rates
• Funerals , Consumer Protection NZ

1. KiwiCover. "How to Make a Life Insurance Claim." kiwi-cover.co.nz
2. Insurance Council of New Zealand. "Fair Insurance Code." icnz.org.nz
3. Partners Life. "How to Make a Claim." partnerslife.co.nz
4. Financial Services Council. "Quarterly Life Insurance Statistics, Q2 2025." fsc.org.nz
5. OneChoice. "Life Insurance Claims." onechoice.co.nz
6. Life Insurance Solutions. "The Claims Process." lifeinsurancesolutions.co.nz
7. Financial Services Complaints Limited. "How We Resolve Complaints." fscl.org.nz
8. Births, Deaths and Marriages. "Order a Death Certificate." bdm.govt.nz

Disclaimer: This article is for informational purposes only and does not constitute financial advice. QuoteHub is operated by QuoteHub Limited (FSP 712931), an authorised financial advice provider. Always seek personalised advice from an authorised financial adviser before making insurance decisions. The claims process described here is general in nature. Individual insurer processes may vary. Contact your insurer or adviser for specific guidance relevant to your policy.

Explore related pages: Life Insurance, Income Protection, Health Insurance, Trauma Insurance.