How to compare life insurance quotes on like-for-like terms
To compare life insurance quotes in New Zealand, first make the quotes describe the same thing: the same sum insured, the same premium structure (stepped or level), the same basis (fully underwritten or guaranteed acceptance) and the same early-years rules. Then compare what each policy excludes, the insurer's financial strength rating and the agency that gave it. Only after that is the monthly price a fair comparison. A cheaper quote is often a different product, not a better deal.
In short
- Check the structure first. A stepped quote starts lower and rises every year; a level quote starts higher.
- Check the basis. A guaranteed acceptance quote asks no health questions but holds back claims in the first one or two years; an underwritten quote is priced on your health.
- Check the rating by agency and name the word. B means "Fair" at A.M. Best and "Weak" at S&P and Fitch.
- Do not name a "cheapest" or "best" insurer on price alone. This page gives criteria, not a ranking.
Searches for "compare life insurance quotes" mostly return price tables. Prices matter, but a price is the output of choices you should check first.
Step 1: Is the premium stepped or level?
Stepped premiums are recalculated every year as you age; level premiums are fixed for a period. Fidelity Life describes its Yearly Renewable Term as rising each year with age, gender, smoker status and amount, and its Level Term as starting "a bit higher" and staying the same for the term (Fidelity). Asteron says level premiums "lock your premium payments in, so they don't increase with age", while stepped "start lower... but increase each year" (Asteron).
Read the end of a level period carefully. AIA offers Rate for Age (stepped) or Level for 10 years, to 65 or to 80, after which the premium converts to Rate for Age (AIA Living wording). In a published IFSO case, a policy that was "level to age 80" converted at 80 and the monthly premium went from $49 to $190; the complaint was not upheld (IFSO). The Financial Markets Authority adds that a policy that is cheaper at first can cost more over time (FMA). We give no crossover age or annual percentage, because no insurer publishes one we can source; see stepped versus level premiums.
Step 2: Underwritten or guaranteed acceptance?
A fully underwritten quote is priced on your health history. A guaranteed acceptance quote is priced for everyone who applies and compensates with limits.
| Fully underwritten | Guaranteed acceptance (Momentum Life Quick Life) | |
|---|---|---|
| Health questions | A full declaration; tests above set cover amounts | None |
| Cover | Chosen by you | $50,000 to $300,000 per life, +3% a year to $500,000 |
| Ages | Varies by insurer | 18 to 65 |
| Early years | Terms set by the underwriter | First 2 years: pre-existing conditions and suicide excluded |
| Premiums | Stepped or level | Stepped to 75, then fixed |
The underwriting guides we read need only an application form up to $500,000 at every age band, with tests from $500,001 at 61 and over (Fidelity; Chubb). So "no medical" is not unique to guaranteed acceptance; see life insurance with no medical exam and the medical exam and blood test guide. A healthy person can usually get more cover for less with fully underwritten cover through an adviser, so do not compare a guaranteed acceptance quote with an underwritten quote as though they were equals.
Step 3: What are the early-years rules and waiting periods?
This is where two quotes with the same price diverge. For Momentum Life's Quick Life, pre-existing conditions are outside cover for the first 2 years, defined as any illness, condition or symptoms in the 2 years before the policy started, including symptoms never diagnosed, with named markers such as very high blood pressure, cholesterol over 7.0, a BMI over 40 and complications related to diabetes. If death comes from one in the first 24 months and no claim is payable, premiums are refunded. Accidental death and new conditions are covered from the start. Cancelling and re-applying restarts the 2 years.
Funeral-style guaranteed acceptance cover is stricter, with a different mechanism. Momentum Life's Funeral Insurance (ages 40 to 75, $3,000 to $30,000) pays only for accidental death in the first 24 months, and any other death in that window returns all premiums. Total premiums can end up larger than the benefit, and the benefit may not cover the whole funeral. See funeral insurance to compare.
Other early-years rules to put side by side:
| Rule | What the sources say |
|---|---|
| Suicide exclusion | Fidelity and Chubb: 13 months from start, reinstatement or increase. Quick Life: 2 years. Other insurers: not confirmed |
| Free look | Quick Life: 30 days from the policy start. AIA: return within 15 days of receiving the policy document. Others: check the policy documents |
| Existing condition on an underwritten application | Asteron says it can add a stand-down, raise the premium, or exclude the condition permanently or for a set time |
Sources: the Fidelity and Chubb wordings, the AIA wording, the Momentum wordings in the references and Asteron. We found no statutory cooling-off period for life insurance, so do not assume one: the periods are contractual.
Step 4: How is the insurer rated, and who says so?
A financial strength rating is an agency's opinion of an insurer's ability to meet its policy obligations. A.M. Best says it does not address "claims-payment policies or procedures" and "is not a recommendation to purchase, hold or terminate any insurance policy" (A.M. Best). Always name the agency and its word, because the same letter means different things:
| Insurer | Agency and rating, as the insurer publishes it |
|---|---|
| Fidelity Life | A.M. Best A- (Excellent); solvency 113% at 30 June 2026 |
| Chubb Life NZ | A.M. Best A (Excellent) |
| Asteron Life | Fitch A+ (Strong) |
| AIA New Zealand | Fitch AA (Very Strong), per AIA's life cover page |
| Momentum Life | A.M. Best B (Fair); solvency 107% at 30 June 2026 |
Sources: Fidelity, Chubb, Asteron and Momentum, read on 20 October 2026; AIA's rating comes from its life cover page, read on 17 October 2026. Ratings are shown as each insurer publishes them, and Asteron's page gives no rating date. On A.M. Best's scale, A+ and A++ are Superior, A and A- are Excellent, B++ and B+ are Good and B and B- are Fair, which A.M. Best describes as "vulnerable to adverse changes in underwriting and economic conditions". Momentum's own table groups B in a "Vulnerable" range. We found no source that converts one agency's grade into another's, so do not read across the table. Solvency ratios depend on insurer size and are not a ranking.
Claims percentages need the same care. AIA paid 91% of claims received in 2025 (riskinfonz), and Asteron Life paid 97% of claims received in the year to 30 June 2024 (Asteron). The two are not defined alike, so do not rank on them. Momentum publishes no claims statistics, and we will not estimate one.
Step 5: What does the policy exclude, and what does it ask about your job?
Read the wording, not the summary. Quick Life's wording names deaths it excludes at any time: those caused by alcohol or drug effects (unless prescribed and taken as instructed), war, terrorism and criminal activity. It also lists dangerous jobs and pastimes, such as handling explosives or weapons, deep diving and active armed-forces duty, which the wording says can affect your ability to claim. Quick Life does not ask your occupation at application; it matters at claim time. Underwritten insurers ask, and Chubb rates a person with two occupations on the more hazardous one. For trauma and total and permanent disablement quotes, compare the definitions as well: Fidelity defines trauma as a lump sum for a "defined serious illness or condition", and IFSO notes trauma covers "only certain specified life-threatening health conditions".
Like-for-like checklist
| Match this | Why |
|---|---|
| Sum insured | A quote for $400,000 is not comparable with one for $500,000 |
| Stepped or level, and for how long | Year-one prices flatter stepped quotes |
| Underwritten or guaranteed acceptance | The basis changes both price and claims |
| Smoker status | Non-smoker rates need a period free of nicotine: Fidelity and Chubb both ask for 12 months, Momentum 24 consecutive months |
| Increases | CPI-linked, 3% a year or none |
| Early-years rules | Exclusions and waiting periods in months 1 to 24 |
| Insurer and agency rating | Name the agency and word |
Where Momentum Life fits in a comparison
Momentum Life's Quick Life is the guaranteed acceptance option on QuoteHub: ages 18 to 65, $50,000 to $300,000, no health questions, a 2-year exclusion for pre-existing conditions, and an A.M. Best rating of B (Fair) for Momentum Life Limited. Funeral Insurance is ages 40 to 75, $3,000 to $30,000, accidental death only for 24 months. Compare these on the table above. The buttons on this page lead to Momentum's online quote, and the Quick Life page and guaranteed acceptance hub give the detail.
Who pays whom?
The FMA says most insurance advisers receive commission from the insurer, built into the premium; upfront commission, in the FMA's 2016 review, "can be as high as 200% of the annual premium, including bonus commissions", and a comparison website may also earn commission. Some insurers have a clawback period, usually two years, if you cancel (FMA). 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 how advisers get paid. Ask any adviser how they are paid.
If you are replacing a policy, keep the old one running until the new one is in force, and watch for new qualifying periods and exclusions (FMA). See switching life insurance.
Frequently asked questions
How many quotes should I compare?
Enough to see the spread on the same terms. Compare each quote on the checklist first, then compare price. QuoteHub's Premium Index shows ranges across six insurers as at 8 September 2026; it is not a quote.
Is the cheapest quote the best?
We do not call any insurer cheapest or best. A lower price can reflect a stepped structure, a smaller amount or a different basis.
Can I compare life insurance quotes online?
Yes for indicative prices. Your own premium depends on underwriting, so treat online figures as a starting point and check the wording.
Should I use an adviser?
An adviser can compare insurers on your health and explain the wording. Ask how they are paid.
References
- Fidelity Life: Life cover, retrieved 20 October 2026
- Fidelity Life: Financial strength, retrieved 20 October 2026
- Fidelity Life: Underwriting guide (October 2025), retrieved 20 October 2026
- Chubb Life: Essential underwriting guide (May 2025), retrieved 20 October 2026
- AIA Living umbrella policy wording, retrieved 20 October 2026
- Asteron Life: Financial strength, retrieved 20 October 2026
- Chubb Life: Financial strength, retrieved 20 October 2026
- AIA New Zealand: Life cover, retrieved 17 October 2026
- A.M. Best: Guide to Best's Financial Strength Ratings, retrieved 20 October 2026
- IFSO: Increasing premiums case, retrieved 20 October 2026
- Financial Markets Authority: Insurance advice, retrieved 20 October 2026
- Financial Markets Authority: Insurance, retrieved 20 October 2026
- Momentum Life: Quick Life Insurance Policy Wording (November 2025), retrieved 17 October 2026
- Momentum Life: Funeral Insurance Policy Wording (17 August 2023), retrieved 17 October 2026
- Momentum Life: Financial strength, retrieved 20 October 2026
- riskinfonz: $790m in total claims paid in 2025, AIA NZ, 12 May 2026
- Asteron Life: Life Insurer of the Year reports 97% claims payout rate, 11 December 2024
This article is general information, not personalised financial advice. Financial advice is provided by Craig Smith Business Services Limited, trading as Smiths Insurance & KiwiSaver, a licensed Financial Advice Provider (FSP712931). QuoteHub is a trading name.
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