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

Planning life insurance for couples in NZ

Couples in New Zealand can hold life cover as one joint policy or as two single-life policies. The word "joint" does not tell you what happens after a claim, so ask whether the survivor's cover continues. On Momentum Life's Quick Life it does: each person is covered separately, and when one is paid the other stays covered. Whatever the structure, the policy owner, the beneficiary and the Property (Relationships) Act 1976 decide who gets the money and what happens if the relationship ends.

In short

This page covers amounts and ownership. For pricing a joint policy, see joint life insurance in NZ and what it costs; for splits after a separation, see insurance and divorce.

Two people sit at a kitchen table leaning over one shared open folder, each holding a pen, two mugs beside them

Married, civil union or de facto: does it matter for insurance?

For insurance itself, mostly not: insurers ask about your own health and the amount you want, not your marriage certificate. For what happens to money afterwards, the legal status matters more. The Property (Relationships) Act 1976 covers marriages, civil unions and de facto relationships. Community Law's manual says a de facto partner can apply if the relationship has lasted three years or longer, if they made a substantial contribution to it, or if there is a child of the relationship and refusing would cause serious injustice (Community Law). So three years is one route, not a strict threshold.

Two timing points. Marriage or entering a civil union revokes an earlier will unless it was made in contemplation of it (Wills Act 2007, s 18), which matters if your estate is a policy's beneficiary. And the rules on relationship property, below, apply to unmarried partners as well, so do not wait for a wedding to settle ownership. See our guide to the Relationship Property Act.

Joint policy or two single-life policies?

A "joint" policy can mean two quite different things:

Structure What it does after one claim
Joint, first death only Pays once and then ends, leaving the survivor to apply again at their older age and current health
Two lives on one policy, each covered separately Pays for the person who died, and the other stays covered
Two separate policies Each pays for its own life and is unaffected by the other

We did not find a first-death-only policy in the New Zealand wordings we read, so ask any insurer you are quoting which one it is. The evidence we do have is as follows. Momentum Life's Quick Life can be applied for alone or jointly; the wording says that when one person is paid, the other stays covered, so it is not first-death-only. Other insurers cover each person as a separate life assured, often on one policy number: Fidelity's wording pays "if the insured person dies" and Chubb's "if the life assured dies" (Fidelity; Chubb). From 15 November 2027 (not yet in force), the Contracts of Insurance Act 2024 treats each life on a multi-life policy as a separate contract (s 27).

What to compare, then, is not "joint versus separate" but four practical questions:

Pooling does not change the total need. Momentum's own page says "up to $500,000 total available on a joint policy", but the policy wording caps cover at $500,000 per life insured, and the wording governs.

How much cover does each partner need?

Size each partner's cover separately, then check that the survivor could manage:

  1. Debts. The mortgage (the whole balance, or the share each is liable for), car finance and other loans.
  2. Income gap. The household's yearly spending after debts are cleared, less the survivor's take-home pay, times the years you want to cover.
  3. Care costs. If the person who died shared or did the care of children, add the cost of paid care or reduced hours. A partner at home earns nothing but has a replacement cost, as our new parents guide shows with worked numbers.
  4. Immediate costs. For scale, the Funeral Directors Association of NZ's 2026 report puts the average attended cremation (50 guests) at $11,700 and the average burial at $14,300 (FDANZ); the Ministry of Justice probate fee is $275, plus any lawyer's fee (Ministry of Justice).
  5. Subtract existing cover and savings.

The life insurance calculator gives a starting figure for each person.

A worked example with made-up round numbers. A couple has a $600,000 mortgage, Partner A earns well above Partner B, and both work. If B died, A could service the mortgage, so B's sum might cover the debt share, care costs and immediate costs. If A died, B might need the mortgage cleared plus several years of the income gap. The two amounts are different, and that is the case for sizing each partner on their own.

For a sense of the cost, QuoteHub's Premium Index gives indicative monthly cost from insurers' published rate cards as at 8 September 2026, as a range across the insurers priced: $500,000 of stepped cover, non-smoker, class 1, standard rates. At 40, a man's range is $40 to $50 and a woman's is $35 to $40, so two policies at that age and amount come to a combined monthly cost of roughly $75 to $90. It is not a quote, and each person's own premium depends on underwriting. See how premiums are driven.

Who should own the policy, and who is the beneficiary?

The owner controls a policy: they can change beneficiaries, change cover and cancel. The life insured does not have to be the owner. From 15 November 2027 (not yet in force), the Contracts of Insurance Act 2024 says a life policy is not void merely because the policyholder had no interest in the life (ss 75 and 76).

On Quick Life, the wording says the insured is usually the owner, and ownership can be transferred to someone at least 16. An immediate family member can own a policy on the insured's life, but the wording limits that to parents or siblings, with the insured's consent. A partner owning the other's Quick Life policy is not listed, and a trust is not listed, so we do not say a trust can own Quick Life. Funeral Insurance is different: its wording lets a Partner or Relative own a policy on a person's life, and the beneficiary must be a natural person.

On payout, Quick Life pays the owner or the nominated beneficiary. Only the owner can nominate or change a beneficiary. If none is listed, or they have died, the money goes to the owner or the estate. On the owner's death, ownership passes to the surviving joint owner, then the beneficiary, then the estate. Momentum's FAQ gives the order as policy owner, nominated beneficiary, then executor. Name a beneficiary and review it after any change in the relationship, because nominations do not update themselves. If the estate is the beneficiary, the money may follow the probate process; see does life insurance go through probate, life insurance beneficiaries and probate lawyer fees.

Relationship property and life insurance

Under the Property (Relationships) Act 1976, the share of a life policy's value or proceeds attributable to the relationship is relationship property (s 8(1)(g)), apart from policies in which a third person is beneficially entitled. The court can make orders about policies (s 30). Nothing is divided automatically (Property (Relationships) Act 1976, version as at 6 October 2023).

So two claims you may see elsewhere need caution. "Life insurance proceeds are not subject to relationship property" overstates it, because the Act speaks to value and proceeds. And "a trust avoids it" is unsourced: we found no source on file for how a trust-owned policy is treated, so take legal advice. Since 1 April 2024 family trusts pay a flat 39% on retained income over $10,000 (Sorted), which is a cost to weigh, not a solution to the question. See life insurance in a trust.

When one partner has a health condition

A healthy partner and a partner with a condition may fit different products. Underwriting treats each person on their own history, and outcomes vary from standard terms to a loading, an exclusion, a postponement or a decline. Guaranteed acceptance is a fallback: Momentum Life's Quick Life takes ages 18 to 65 for $50,000 to $300,000 per life with no health questions, and excludes pre-existing conditions and suicide for the first 2 years. A healthy partner can usually get more cover for less with underwriting through an adviser. Funeral-style cover for older couples (Momentum's Funeral Insurance, ages 40 to 75) pays only for accidents in the first 24 months, and total premiums may exceed the benefit. Momentum Life Limited holds an A.M. Best rating of B (Fair); see its financial strength page.

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. The buttons on this page lead to Momentum's online quote. Our guaranteed acceptance hub compares the options.

Frequently asked questions

Is joint life insurance cheaper than two policies?

It depends on the product and discount. Quick Life gives $50 a year off when a partner joins; other insurers' terms vary. Compare the whole package, including what the survivor keeps.

What happens to joint cover if we separate?

That depends on the owner and the terms. Ask the insurer before you buy, and see insurance and divorce. Two separate policies avoid the question.

Does my de facto partner count?

For relationship property, a de facto partner can apply if they meet one of three tests: three years, a substantial contribution, or a child and serious injustice. For insurance, you can name a partner as beneficiary.

Can my partner own a policy on my life?

On Quick Life the wording lists the insured and, with consent, their parents or siblings, so a partner is not listed. Other insurers' rules differ.

References

This article is general information, not personalised financial advice or legal 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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