Insurance When Moving Overseas from NZ: What to Keep, Cancel or Transfer | QuoteHub

By QuoteHub Editorial Team · Updated 2025-12-29

Insurance When Moving Overseas from NZ: What to Keep, Cancel, or Transfer

Every year, thousands of New Zealanders make the decision to move overseas. In 2023 alone, approximately 18,000 NZ citizens emigrated, a 24% increase from the prior year, with roughly 75% heading to Australia. Whether you are relocating for work, family, or simply a change of pace, one area that often gets overlooked in the rush of planning is your insurance.

What happens to your life insurance when you leave New Zealand? Can you keep your health cover? Will your income protection still pay out if you get sick in London or Sydney?

The answers are not always straightforward, and getting them wrong can leave you unprotected at the worst possible time. This guide walks through every major insurance type, what your options are, and provides a practical checklist to follow before you board that flight.

What Happens to Your NZ Insurance When You Move Overseas

The short answer: most New Zealand insurance policies are designed for people living in New Zealand. When you move overseas permanently, the majority of your cover will either lapse, become invalid for claims, or need to be actively cancelled.

Here is how each major policy type is affected.

Life Insurance

NZ life insurance policies from providers like AIA, Partners Life, Fidelity Life, and Asteron Life generally contain residency clauses. These clauses mean:

• Short-term travel (holidays, business trips) is usually fine. Most policies continue to cover you while travelling for a defined period, often up to 90 or 180 days.
• Permanent relocation typically triggers a policy exclusion or termination. The policy relies on NZ jurisdiction, NZ underwriting assumptions, and NZ claims processes.
• Some providers may allow continuation if you are moving to certain countries (often limited to Australia, the UK, or other low-risk jurisdictions). This is not guaranteed and depends entirely on your insurer's terms.

What to do: Contact your insurer at least 8 to 12 weeks before departure. Ask specifically whether your policy can continue overseas, whether the destination matters, and whether there are any premium changes. If the policy cannot continue, ask about surrender values or paid-up options.

[Health Insurance](/health-insurance)

NZ private health insurance from Southern Cross, nib, or AIA does not provide coverage outside New Zealand on a permanent basis. These policies are designed around the NZ healthcare system, including relationships with NZ hospitals, specialists, and Pharmac.

• Your policy will not cover medical treatment in your new country.
• Public healthcare access in NZ also ceases once you are no longer ordinarily resident.
• Travel cover within health policies (if any) is intended for short trips, not relocation.

What to do: Cancel your NZ health insurance before or shortly after departure to avoid paying premiums for cover you cannot use. Arrange international health insurance or destination-country health cover before you leave (more on this below).

Income Protection

Income protection insurance is among the most NZ-specific policy types. It replaces a portion of your income if you cannot work due to illness or injury. The problems with maintaining it overseas include:

• Insurers cannot verify claims or employment status in a foreign jurisdiction.
• Benefit payments are calculated based on NZ income and NZ tax treatment.
• Most policies explicitly require ongoing NZ residency.
• ACC integration (which offsets benefits in many policies) does not apply overseas.

What to do: Income protection policies will almost certainly need to be cancelled. You will need to arrange equivalent cover in your new country, or through an international provider, once you have established employment there.

Trauma (Critical Illness) Insurance

Trauma cover pays a lump sum on diagnosis of specified conditions (cancer, heart attack, stroke, etc.). Like life insurance, it may have some portability depending on your insurer and destination, but many policies contain NZ residency requirements for claims processing.

What to do: Check your specific policy wording. Some insurers will continue trauma cover for policyholders living in certain countries. Others will not. Get written confirmation from your insurer.

Contents and Vehicle Insurance

These are straightforward. Contents insurance covers belongings in your NZ home, and vehicle insurance covers NZ-registered vehicles. If you are selling your home contents and vehicle before leaving, cancel these policies. If you are renting your NZ property out, you may need landlord insurance instead.

What About ACC?

ACC (the Accident Compensation Corporation) is a unique part of New Zealand's system. It covers the cost of treatment and provides income support for injuries caused by accidents, funded through levies on employers, employees, and vehicle owners.

Key points for departing Kiwis:

• ACC does not cover you overseas. Once you leave New Zealand, you lose ACC coverage. If you are injured in another country, ACC will not pay for your treatment or lost income.
• ACC does not cover illness. Even within NZ, ACC only covers accidents. Illness has never been covered.
• Returning to NZ. When you return and become ordinarily resident again, ACC coverage resumes. There is no waiting period for accident cover upon return.
• Work overseas. Some countries have their own accident compensation schemes (Australia's workers' compensation system, for example). Check what your destination country provides.

The loss of ACC is one of the most underappreciated risks of moving overseas. Many Kiwis do not realise how much of their safety net ACC provides until it is gone.

International Health Insurance Options

If you are moving overseas, you will almost certainly need international health insurance, at least until you become eligible for your destination country's public health system (if one exists).

Key providers for NZ expats

What to look for in an international health plan

• Lifetime renewal guarantee. This ensures the insurer cannot cancel your policy as you age or if you make claims. Essential for long-term expats.
• Medical evacuation cover. If you are in a country with limited medical facilities, evacuation to a suitable hospital can cost tens of thousands of dollars.
• Maternity cover. If relevant, check the waiting period (usually 10 to 12 months) and benefit limits.
• Pre-existing conditions. Most international plans exclude pre-existing conditions initially but may cover them after a moratorium period (often 24 months with no related claims).
• Country of cover. Some plans exclude the USA or charge significantly more to include it due to the high cost of American healthcare.

Cost considerations

International health insurance premiums vary widely based on your age, destination, deductible, and coverage level. As a rough guide:

• Basic plans (high deductible, limited outpatient): NZ$150 to $300 per month
• Mid-range plans (moderate deductible, outpatient included): NZ$300 to $600 per month
• Comprehensive plans (low deductible, dental, maternity, USA included): NZ$600 to $1,200+ per month

Healthcare cost inflation is running at approximately 18% for international medical plans projected into 2026, so these figures may increase.

Returning to NZ: Re-entry Underwriting

One of the most important things to understand is what happens when you come back. If you cancelled your NZ insurance policies when you left, you will need to apply for new cover upon return. This means going through full underwriting again.

What re-entry underwriting involves

• Full medical underwriting. You will need to disclose your complete medical history, including any conditions diagnosed or treated while overseas. If you developed a health condition during your time abroad, it may be excluded from your new NZ policy, or your premiums may be loaded (increased).
• Age-based pricing. You will be underwritten at your current age, which means higher premiums than when you originally took out cover years earlier.
• No continuity of cover. Your new policy starts fresh. There is no recognition of your previous policy history, claims record, or waiting periods already served.
• Potential decline. If your health has deteriorated significantly, you may be declined cover altogether.

The hidden cost of cancelling

This is the real risk that many departing Kiwis underestimate. A 30-year-old who cancels their life and health insurance to move overseas for five years returns at 35. If they developed asthma, a back condition, or were diagnosed with anxiety while away, those conditions may be permanently excluded from any new NZ policy. The insurance they had at 30, which covered everything, is gone and cannot be replaced on the same terms.

Strategies to consider

1. Ask about suspension or "freeze" options. Some insurers may allow you to suspend your policy for a defined period (often 12 to 24 months) while overseas, keeping your underwriting intact. Not all insurers offer this, and it may only apply to life and trauma cover, not health or income protection.

2. Reduce cover rather than cancel. If your insurer allows it, reducing your cover to a minimal level keeps the policy active and preserves your underwriting status. You can increase cover again when you return (subject to further underwriting for the increase only).

3. Maintain life insurance if possible. Life insurance is the policy type most likely to have portability provisions. If your insurer will continue your life cover overseas, seriously consider keeping it, even at a cost, to preserve your health rating and avoid re-underwriting later.

Practical Checklist for Departing Kiwis

Use this checklist in the 8 to 12 weeks before your departure.

Insurance review

• Contact each insurer (life, health, income protection, trauma) and ask about overseas continuation, suspension, or cancellation options
• Get written confirmation of what happens to each policy upon departure
• Ask about paid-up values or surrender values for life insurance
• Request a copy of your current policy terms for your records
• Cancel policies that cannot continue and confirm no further premiums will be charged

New cover

• Research international health insurance options and obtain quotes from at least two providers
• Arrange international health cover to start on or before your departure date, ensuring no gap in coverage
• Check whether your destination country has a public health system and what the eligibility requirements are (residency period, visa type, etc.)
• If moving for work, check whether your employer provides health or life insurance as part of your package

ACC and government

• Understand that ACC coverage ends when you leave NZ
• Check your destination country's accident compensation or workers' compensation arrangements
• If you are receiving any ACC payments for an existing claim, contact ACC to discuss how your departure affects ongoing entitlements
• Update your IRD details if relevant (tax residency changes may affect your insurance obligations)

Documentation

• Obtain copies of your full medical records from your NZ GP before leaving (this makes future insurance applications easier)
• Keep records of all policy documents, cancellation confirmations, and correspondence with insurers
• Note the names and contact details of your NZ insurer's international or expat teams, if they have them

Country-Specific Considerations

Moving to Australia

Australia is the most common destination for departing Kiwis. Key points:

• NZ citizens on Special Category Visas (subclass 444) are generally eligible for Medicare, Australia's public health system.
• Medicare provides good hospital and GP cover but limited dental, optical, and some specialist services. Many Australians hold private health insurance to supplement Medicare.
• Australian life and income protection insurance is widely available through advisers and superannuation funds.
• The Reciprocal Health Agreement between NZ and Australia provides some public healthcare access for short-term visitors, but it is not a substitute for proper cover as a resident.

Moving to the United Kingdom

• NZ citizens may access the NHS (National Health Service) if they have the right to live and work in the UK.
• NHS covers most healthcare but has long waiting times for non-urgent treatment. Many UK residents supplement with private health insurance.
• UK life insurance is straightforward to obtain.
• The UK has no equivalent of ACC. Statutory Sick Pay and the welfare system provide limited income support during illness.

Moving to other destinations

For countries without comprehensive public healthcare (such as the USA, many Asian and Middle Eastern countries), international health insurance is not optional. Medical costs in the USA, for example, can be catastrophic without insurance. Ensure you have robust cover in place before arrival.

Frequently Asked Questions

Can I keep my NZ life insurance if I move to Australia?

It depends on your insurer. Some NZ life insurers will continue cover for policyholders living in Australia, as it is considered a low-risk, similar jurisdiction. Others will not. Contact your insurer directly and request written confirmation. Do not assume your cover continues automatically.

What happens if I do not tell my insurer I am moving overseas?

Failing to notify your insurer of a change in residency could void your policy entirely. If you make a claim while living overseas without having disclosed your move, the insurer may decline the claim on the grounds of material non-disclosure. Always notify your insurer of any change in your living situation.

How long can I travel overseas before my NZ insurance is affected?

Most NZ insurance policies allow travel for defined periods, typically 90 to 180 days per trip. Beyond this, you may need to notify your insurer. Permanent relocation is treated differently from travel. The key distinction is whether New Zealand remains your primary place of residence.

Will I lose my no-claims history if I cancel my health insurance?

NZ health insurers do not typically use no-claims bonuses in the same way car insurers do. However, cancelling your policy means losing your underwriting status. When you apply for new cover later, you will be assessed based on your health at that time, not when you originally took out the policy. This is the more significant loss.

Can I get income protection insurance overseas?

Yes, but it will need to be arranged in your new country of residence, through a local insurer or an international provider. NZ income protection policies cannot be transferred overseas. Australian income protection, for example, is widely available through both standalone policies and superannuation funds.

What if I am only going overseas for 6 to 12 months?

For shorter absences, you may be able to maintain all your NZ policies. Most insurers accommodate absences of up to 12 months without policy changes, provided NZ remains your home base. Confirm this with each insurer in writing before you leave.

Does KiwiSaver life insurance continue overseas?

Some KiwiSaver schemes offer life insurance as a benefit. If you take a KiwiSaver savings suspension while overseas, check whether the life insurance component is also suspended. The rules vary by scheme.

References

• Financial Markets Authority (FMA) , Insurance guidance
• ACC New Zealand
• Sorted.org.nz , Insurance guides
• Insurance & Financial Services Ombudsman (IFSO)
• Consumer Protection NZ
• Cancer Society of New Zealand
• Heart Foundation NZ
• Mental Health Foundation NZ

1. AXA International Health Insurance, "Expat Health Plans," axa.com, accessed March 2026.
2. Southern Cross Health Society, "Policy Terms and Conditions," southerncross.co.nz, accessed March 2026.
3. Mondassur, "International Health Insurance for New Zealand Expats," mondassur.com, accessed March 2026.
4. nib New Zealand, "Health Insurance Plans and Pricing," nib.co.nz, accessed March 2026.
5. ACC New Zealand, "Who ACC Covers," acc.co.nz, accessed March 2026.
6. Insubuy, "International Health Insurance Plans," insubuy.com, accessed March 2026.
7. Allianz Care, "Global Health Insurance," allianzcare.com, accessed March 2026.
8. Stats NZ, "International Migration Statistics," stats.govt.nz, accessed March 2026.

Disclaimer: This article is for informational purposes only and does not constitute financial or insurance advice. QuoteHub is operated by QuoteHub Ltd (FSP 712931), an authorised financial advice provider. Insurance policies, terms, and portability options vary between providers and change over time. Always consult your specific insurer and consider seeking advice from an authorised financial adviser before making decisions about your insurance cover. Information is current as at March 2026.

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