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

Life insurance broker versus direct buying in NZ

A life insurance broker, in New Zealand usually called an adviser, is a person or firm giving regulated financial advice under a Financial Advice Provider licence. They can ask more than one insurer about your health history and compare the terms offered. Buying direct means applying to a single insurer yourself, with no comparison across insurers; any advice you get covers only that insurer's own products. Momentum's Quick Life, for example, is a direct guaranteed acceptance product with no health questions. A healthy person can usually get more cover for less with fully underwritten cover through an adviser.

In short

What is the difference between a broker and buying direct?

A licensed adviser must put your interests first when there is a conflict, but is usually paid by the insurer. A direct application is a purchase from the insurer. Momentum Life is itself a licensed Financial Advice Provider whose advice covers only its own products (Momentum), so "direct" gives you one company's range, not a comparison of the market.

Licensed adviser (broker) Direct from one insurer
Range Can approach more than one insurer, though a given adviser may not use every insurer One insurer's products
Advice A recommendation based on an assessment of your needs Product information; where the insurer is a licensed provider, its advice covers only its own products
Paid by Usually commission from the insurer, built into the premium; some also charge a fee for complex needs The insurer, from the premium
Health assessment Full application with records and tests where asked Depends on product: none for guaranteed acceptance, questions for others
Examples Fully underwritten life cover, trauma, income protection Momentum Quick Life; AIA Essentials is an online application, and AIA says cover is subject to your application being approved

Sources: FMA: Insurance advice, AIA life insurance, and the Quick Life wording. Compared: Momentum Life and AIA, and advisers in general, on the criteria in the table, as at 20 October 2026. Not every insurer is included. This is one adviser's reading, not a score.

How do advisers get paid in New Zealand?

The FMA says "Most insurance advisers receive commission", a payment from the insurer as a percentage of your premium, and that advisers must disclose how much. From its 2016 review, it says upfront commission "can be as high as 200% of the annual premium, including bonus commissions" and ongoing commission "could range from 5 to 25%". Some insurers claw back commission, usually over about two years, if you cancel, and some advisers pass that on (FMA: Insurance advice). We have no insurer's actual commission terms on file. For more, read how insurance advisers get paid.

QuoteHub is a website with a licensed advice service behind it, and it earns money from a partner. QuoteHub is a Momentum Life partner, and Smiths Insurance & KiwiSaver may receive a commission if you buy through our link. Advice is provided by Craig Smith Business Services Limited, trading as Smiths Insurance & KiwiSaver, a licensed Financial Advice Provider (FSP712931). That means we are not a neutral third party on Momentum; see how we are paid and our disclosure.

A decision path: adviser or direct?

Work through these in order.

  1. Do you need cover in place today, with no health questions? If yes, a direct guaranteed acceptance product may fit. Momentum's Quick Life takes ages 18 to 65 for $50,000 to $300,000 per person. For the first 2 years it excludes pre-existing conditions and suicide, so it does not pay for a death from a condition you already had. Go to step 5 to weigh that.
  2. Do you have a health condition, a risky job or hobby, or are you over 50? An adviser can ask insurers how they treat it. Asteron says an insurer can add a stand-down period, raise the premium, or exclude the condition permanently or for a set time (Asteron). An adviser cannot make an insurer accept you.
  3. Do you want more than $300,000 of cover? Quick Life starts at up to $300,000 and rises 3% a year to a $500,000 cap per person. AIA lists Living life cover as unlimited and Chubb's Assurance Extra has no maximum sum from age 16, both through advisers (AIA, Chubb).
  4. Are you in good health? Fully underwritten cover is likely to be an option, and Fidelity needs only an application form and Chubb only a personal statement up to $500,000 at every age band, with medical evidence from $500,001 at ages 61 and over; disclosed conditions trigger more (Fidelity, Chubb). An adviser can compare terms across insurers, and a healthy person can usually get more cover for less with underwritten cover.
  5. Do you want to compare the trade-offs once, with someone accountable? Ask any adviser which insurers they can place cover with and why they chose the one they recommend. If you still prefer direct, go to the Quick Life page.

If you hold cover already, keep it running until a new policy starts, and watch for new qualifying periods and exclusions (FMA).

When direct acceptance makes more sense than a broker

Direct acceptance can make sense when speed or a no-questions application matters more than the price, when you would likely be declined or loaded elsewhere, or when you want a small amount of cover for a specific purpose. Compare it with the alternatives on the guaranteed acceptance versus full medical page and the wider guaranteed acceptance hub. Funeral-only needs are covered at funeral insurance; Momentum's Funeral Insurance, for ages 40 to 75, pays only for accidental death in its first 24 months, and total premiums can end up larger than the benefit.

Disclosure applies on every route

Whether you buy through an adviser or direct, IFSO says the current law does not distinguish intentional from unintentional non-disclosure: leave something out and the insurer may treat the policy as if it did not exist (IFSO). From 15 November 2027 (not yet in force) the Contracts of Insurance Act 2024 changes this to a duty to take reasonable care not to make a misrepresentation. Until then, answer completely. See insurance non-disclosure in NZ.

Help at claim time and if something goes wrong

At claim time the insurer decides, whichever route you used. The FMA suggests asking an adviser about their claims process. If a dispute arises, every business offering retail financial services must belong to an approved dispute resolution scheme. There are four: the Banking Ombudsman Scheme, IFSO, Financial Services Complaints and the Financial Dispute Resolution Service. Complain to the provider first (FMA: Disputes). We have no source showing that using an adviser changes how an insurer decides a claim.

How to check an adviser's licence

Being on the Financial Service Providers Register does not mean a firm is licensed or regulated by the FMA (FMA: Disputes). Check the firm's licence on the FMA's register before you share health details, and ask which insurers it deals with and how it is paid. The FMA says licensed providers must make sure you understand the nature, scope and limits of their advice (FMA: Financial advice provider).

Momentum Life Limited's A.M. Best financial strength rating is B (Fair), affirmed 11 February 2026, which Momentum's own table places in a range it labels "Vulnerable"; see Momentum's financial strength page. The buttons on this page open Momentum's application only. For how banks fit, read bank versus adviser life insurance; for online routes, buying life insurance online.

Frequently asked questions

What is the difference between a life insurance broker and an adviser?

In New Zealand regulated advice is given under a Financial Advice Provider licence. "Broker" is a common search word; the FMA's consumer pages use "adviser".

Is it cheaper to buy life insurance direct?

We found no published comparison of prices for the same insurer direct and through an adviser. Commission is built into premiums on both routes where it is paid.

Can a broker get me cover if I have been declined?

An adviser can ask insurers and explain their terms but cannot make an insurer accept you. Guaranteed acceptance cover is a different route, with early-window limits.

How much does a broker cost me?

Most advisers are paid commission by the insurer, and must disclose it. Some also charge a fee for complex needs.

References

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