Insurance cooling-off periods and free-look refunds in NZ
A cooling-off or free-look period is a window in which you can cancel a new policy and get your premiums back. For life and funeral insurance in New Zealand it comes from the policy, not from one law: we found no statutory cooling-off right in the Contracts of Insurance Act 2024 text. Momentum Life gives 30 days (from the acceptance date for Funeral Insurance, from the policy start date for Quick Life), with a full refund only if no claim has been made. AIA gives 15 days from receiving the policy.
In short
- The free-look length and its start point differ by insurer. Momentum, AA Life, NZ Seniors and OneChoice publish 30 days; AIA's wording says 15 days from receiving the policy document.
- Momentum's refund is available only if no claim has been made in the window. After the window, cancelling gives no refund of premiums paid.
- A free look is not the same as the premium refund some funeral policies make if you die of a non-accident cause in the early months.
- We could not find a free-look period in public documents for every insurer. Where we did not, check the policy documents.
What a cooling-off period is, and where it comes from
A cooling-off period is a window after you buy during which you may cancel and receive a refund. The term "free look" means the same thing in insurance. We read the text of the Contracts of Insurance Act 2024 on 20 October 2026 and found no statutory cooling-off or free-look right for life insurance in it, so the right we can point to is the one written into your policy. That is why it varies. The Act is not yet in force: from 15 November 2027 it is due to change the rules on disclosure and remedies.
What each insurer publishes
Free-look rules as the insurers publish them, read between 17 and 20 October 2026:
| Insurer and product | Length | Starts from | Condition |
|---|---|---|---|
| Momentum Funeral Insurance | 30 days | The Acceptance Date | No claim made; full refund of premiums paid |
| Momentum Quick Life | 30 days | Your policy start date | No claim made; full refund |
| AIA (Living umbrella wording) | 15 days | Receiving the policy document | Refund if no benefit has been paid or claim made |
| AA Life Funeral Cover | 30-day no-obligation period | Not stated on the page | 100% refund of premiums |
| NZ Seniors and OneChoice funeral cover | 30-day cooling-off | Policy documents | OneChoice: no refund on premiums after the cooling-off period |
| Fidelity Life, Chubb Life, Asteron Life, Partners Life | Not found in public documents | Not found | Check your policy documents |
Sources: Momentum Funeral wording, Momentum Quick Life wording, AIA Living umbrella wording, AA Life, OneChoice. The length and the start point both vary, so do not assume 30 days from the day you receive the paperwork; read the wording you were given.
How Momentum's free look works
Funeral Insurance: "You have 30 days from the Acceptance Date to make sure this cover is right for you. You can cancel your Policy during this time if no claim is made and receive a full refund of premiums paid by calling or writing to Momentum Life. If you cancel outside of this 30 day period, there will be no refund of premiums."
Quick Life: you have 30 days from your policy start date. If you decide it is not the right fit and have not made a claim, you can cancel within that time for a full refund by phoning or emailing [email protected]. After 30 days you can still cancel at any time, but premiums already paid are not refunded.
Neither wording says the free-look cancellation must be a signed letter: the Funeral wording says "calling or writing", and the Quick Life wording says to call or email. For ordinary cancellation after the window, the Funeral wording says to call or send a signed cancellation letter by post or email, with 30 days' notice. Keep a note of when and how you cancelled.
Free look versus the early-window refund
Two different refunds get mixed up:
- Free look. You cancel within 30 days and get your premiums back.
- Early-window refund on death. Funeral Insurance pays only for accidental death in the first 24 months. If the person dies of any other cause in that window, no benefit is paid and all premiums for that person are refunded. Quick Life refunds premiums if a pre-existing condition causes death in the first 24 months and no claim is payable.
The second kind is not a cooling-off right. It does not let you cancel, and it is paid because of a death. Funeral Insurance is also not a savings plan: depending on how long you keep it, total premiums could exceed the benefit.
What can end your right to a refund
- A claim. Momentum's free look requires that no claim has been made. AIA's wording requires that no benefit has been paid or claim made.
- Waiting past the window. After day 30 with Momentum, there is no refund of premiums paid.
- Re-applying. For Quick Life, if you cancel and apply again later, your two-year standdown starts again and previously paid premiums are not refunded. The first 2 years exclude pre-existing conditions and suicide. For Funeral Insurance, a new policy starts a new 24-month window in which only accidental death is paid.
Before you cancel or replace a policy
Do not cancel existing cover until new cover is in force. The Financial Markets Authority says to keep the old policy running until the new one starts, and to check for new qualifying periods and pre-existing condition exclusions (FMA: Insurance). The new insurer sees your full health history (IFSO: Life insurance). Also see cancelling or changing life insurance and how to claim life insurance if a claim is on the horizon.
If a refund is refused, complain to the insurer first. For Momentum that is 0800 108 108, then the Insurance & Financial Services Ombudsman (IFSO); see Momentum Life complaints.
Where Momentum fits
Momentum's Funeral Insurance is open to New Zealanders aged 40 to 75, and Quick Life to those aged 18 to 65, both without health questions. A healthy person can usually get more cover for less with fully underwritten cover through an adviser. Momentum Life Limited has an A.M. Best financial strength rating of B (Fair); see its financial strength page. The buttons on this page open Momentum's online application; read about the plans on the Funeral Cover and Quick Life pages, or what is funeral insurance. The benefit may not cover a whole funeral.
General information, not advice. Advice is provided by Craig Smith Business Services Limited, trading as Smiths Insurance & KiwiSaver, a licensed Financial Advice Provider (FSP712931). 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. Last reviewed 20 October 2026 by the QuoteHub Adviser Team.
Frequently asked questions
Is there a legal cooling-off period on life insurance in NZ?
We found none in the Contracts of Insurance Act 2024. Free-look periods are in the policy documents.
Do I get all my premiums back if I cancel within 30 days with Momentum?
A full refund of premiums paid, if no claim has been made.
What if I cancel after 30 days?
You can cancel at any time with 30 days' notice, but premiums already paid are not refunded.
References
- 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: Living umbrella policy wording v8, retrieved 20 October 2026
- AA Life: Funeral cover, retrieved 20 October 2026
- OneChoice: Funeral insurance, retrieved 20 October 2026
- NZ Seniors: Funeral insurance, retrieved 20 October 2026
- Contracts of Insurance Act 2024, retrieved 20 October 2026
- Financial Markets Authority: Insurance, retrieved 20 October 2026
- IFSO: Life insurance, retrieved 20 October 2026
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