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

Does life insurance start immediately in NZ?

Life insurance starts on the date the insurer accepts your application, which is shown in your policy schedule. With Momentum's Quick Life and Funeral Insurance there are no health questions and cover starts on that acceptance date, but "starts" does not mean "covers everything". Funeral Insurance pays only for accidental death in the first 24 months. Quick Life excludes pre-existing conditions and suicide for the first 2 years. Underwritten policies are assessed first, so their terms are known before cover begins.

In short

Starting a policy and being fully covered are different things

An acceptance date is the date the insurer accepts your application and the policy officially starts. Momentum's wordings define it that way and say cover begins on it (Momentum Life: Quick Life Policy Wording, November 2025; Funeral Insurance Policy Wording, 17 August 2023). A common shorthand says cover starts when the first premium is paid. The wordings do not say that: the first premium payment date is a separate date, the date the first payment is due. Check your schedule for both.

A waiting period (also called a stand-down) is a period after the start when cover is limited. It is how guaranteed-acceptance insurers manage the risk of accepting applicants without health questions. So the honest answer to "does it start immediately?" is: the policy does, the full cover does not.

What each Momentum policy covers in the early window

Funeral Insurance (ages 40 to 75) Quick Life (ages 18 to 65)
When cover begins Acceptance date Acceptance date
Accidental death in the early window Paid at 3 times the benefit, at any time, if death is within 90 days of the accident Paid
Death from illness in the early window First 24 months: no benefit, all premiums for that person refunded A condition that first appears after the start is covered. A pre-existing condition is excluded for 2 years
Suicide No separate clause; falls under the 24-month rule Excluded for 2 years, including attempted suicide and intentional self-harm
Terminal illness No benefit Covered (expected death within 12 months), including in the first 2 years for new conditions
After the early window Death from any cause Pre-existing conditions covered, except some specific conditions that can be listed as permanent exclusions in your schedule
Free look 30 days from the acceptance date 30 days from the policy start date

The two windows are the same length but do different things, so neither is a "shorter" stand-down; they differ in what they restrict. Funeral Insurance blocks every death except an accident for 24 months. Quick Life blocks deaths linked to what you already had, and suicide.

Quick Life's definition of a pre-existing condition is broad. It covers an illness, condition or symptoms in the 2 years before the policy started, including anything you had treatment or advice for, symptoms you had even if undiagnosed, and what you would reasonably have been aware of. The wording adds very high blood pressure, cholesterol over 7.0, a BMI over 40, or complications related to diabetes. Because the policy asks no health questions, nothing is checked at the start, and the question is settled at claim time. See our guide to life insurance and pre-existing conditions.

Increases follow the same rule. On Funeral Insurance an increase or an added person starts a new 24-month window for that increase or person. On Quick Life, an increase you request restarts the 2 years for the increase portion; the automatic 3% annual increases do not. Cancelling and re-joining restarts the full 2 years with no refund.

Accident or illness: what the early window means for a family

Imagine the same death in each case.

These are descriptions of how the wordings work, not predictions about any claim. Momentum decides each claim on its facts. Quick Life also always excludes deaths caused by the effects of alcohol or drugs, war, terrorism, criminal activity or a listed dangerous job or pastime, at any time.

Underwritten cover: assessed first, terms known up front

With a fully underwritten policy, an insurer asks health questions and, for larger amounts or older ages, may ask for medical evidence. Fidelity and Chubb both publish that up to $500,000 only an application form is needed at every age band, and Code A (a GP medical or paramedical and blood tests) starts from $500,001 at 61 and over; a disclosed condition can trigger more (Chubb underwriting guide, May 2025; Fidelity underwriting guide, October 2025). We found no published time for a decision, and we have not written one.

The result is a set of terms: standard, loaded, excluded, postponed or declined. Fidelity's pre-assessment is "not an offer of cover, nor a binding final assessment". You should know exactly what is excluded before cover starts. Underwritten policies still have exclusions in the schedule, and Fidelity and Chubb both exclude suicide for 13 months from the start, reinstatement or an increase.

What if something happens during the application? We could not find a published rule on cover during the application period for the insurers we read, so we make no promise. Ask the adviser or insurer in writing whether any interim cover applies, and tell them straight away about any new symptom or diagnosis.

How to check your own policy

  1. Find the acceptance date and cover start date on the schedule.
  2. Look for the stand-down or "first 24 months" and "first 2 years" wording, and note whether it is for all illness or only pre-existing conditions.
  3. Read the special terms and any permanent exclusions listed in the schedule.
  4. Note the free-look period: 30 days for both Momentum plans, but counted from different dates. AIA's wording gives 15 days from receiving the policy document (AIA wording v8). Check others in the policy documents.
  5. Keep any old policy running until the new one is in force. The FMA warns about new waiting periods and exclusions when you replace cover (FMA).

Waiting too long to apply has its own cost, since cover and premiums depend on your age and health at the time; see the cost of waiting.

Who each route suits

Guaranteed acceptance suits people who would be declined or heavily loaded elsewhere, or who want a policy in place without questions. A healthy person can usually get more cover for less with fully underwritten cover through an adviser. Over 75, neither Momentum product accepts new applicants. Quick Life is also not available to people diagnosed with a terminal illness or in palliative or hospice care, according to Momentum's own site.

Advice is provided by Craig Smith Business Services Limited, trading as Smiths Insurance & KiwiSaver, a licensed Financial Advice Provider (FSP712931). This is general information, not personal advice. QuoteHub is a Momentum Life partner. Smiths Insurance & KiwiSaver may receive a commission if you buy through our link; see how we are paid. Momentum Life Limited's A.M. Best Financial Strength Rating is B (Fair), in the range Momentum's own table calls "Vulnerable" (Momentum: Financial strength). The buttons on this page go to Momentum's plan pages, with the ages shown. Funeral Insurance is not a savings plan: total premiums can exceed the benefit, and the benefit may not cover the whole cost of a funeral. For more, see the guaranteed acceptance hub, the Quick Life plan page and the funeral insurance hub, or see how an instant quote differs from cover.

Frequently asked questions

Is there such a thing as instant life insurance in NZ?

Guaranteed-acceptance policies accept applicants without health questions, so acceptance can be immediate. The cover that follows is restricted in the first two years, so it is not instant full cover.

Does Quick Life cover illness from day one?

It covers illnesses that first appear after the policy starts. It excludes pre-existing conditions, and suicide, for the first 2 years.

Does Funeral Insurance pay if I die of illness in the first year?

No. For the first 24 months it pays only for accidental death within 90 days of the accident. For any other death, no benefit is paid and all premiums for that person are refunded.

References

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