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

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Does life insurance pay out for drug-related or alcohol-related deaths in NZ?

It depends on the policy wording and on how the person died. Momentum's Quick Life never pays when death is caused by the effects of alcohol or drugs, unless a prescribed drug was taken exactly as instructed by a registered New Zealand doctor, and that applies in every year of the policy. Momentum's Funeral Insurance has no alcohol or drug clause, but in its first 24 months pays only for accidental death. Other insurers' wordings differ, and we could not verify them, so read the exclusions in the policy itself.

In short

Three questions that decide the outcome

An insurer asking whether to pay looks at three things. This page sets out what the wordings say about each; it cannot tell you how an insurer would treat a particular death.

  1. What caused the death? Some wordings exclude deaths caused by the effects of alcohol or drugs. Others do not mention them.
  2. Was it an accident, or intentional? Funeral Insurance pays in its first 24 months only for an "Accident", which its wording defines. Quick Life excludes suicide and intentional self-harm for 2 years.
  3. When did cover start? Both Momentum products restrict their first 2 years, and a policy that was increased or reinstated starts a new window for the increase.

Momentum Quick Life

Quick Life is Momentum's guaranteed acceptance life cover for ages 18 to 65, $50,000 to $300,000, with no health questions. Its wording says Momentum will not pay "a Benefit for any type of death or terminal illness caused by" the effects of alcohol or drugs, "unless a prescribed drug was taken exactly as instructed by a registered New Zealand doctor". The same list excludes war, insurrection, terrorism and criminal activity or illegal acts (Momentum Life: Quick Life Insurance Policy Wording, November 2025).

Three details matter:

In the first 2 years Quick Life also excludes suicide, attempted suicide and any intentional self-harm, "regardless of your mental state", and death from a pre-existing condition. Premiums are refunded when death is from a pre-existing condition and no claim is payable; the wording states no refund for suicide.

Momentum Funeral Insurance

Funeral Insurance (ages 40 to 75, $3,000 to $30,000) has a different design. Its wording has no alcohol, drug or suicide clause. What it has is a 24-month window: in the first 24 months the benefit is paid only if the person "dies as a direct result of an Accident and the death occurs within 90 days of that Accident". After 24 months it pays for death from any cause. Any other death in the window pays nothing and all premiums for that person are refunded (Momentum Life: Funeral Insurance Policy Wording, 17 August 2023).

The wording defines an Accident as bodily injury "directly and solely caused by an unintentional accidental, violent, external and visible means without any other contributing causes and where the injury is not self-inflicted". Whether a particular death meets that definition is for Momentum to decide on the facts. The benefit is a fixed amount, and the wording says it may not cover the whole cost of a funeral.

Other insurers

Insurer What we could confirm What we could not
Fidelity Life Suicide exclusion of 13 months from the start, reinstatement or an increase Alcohol and drug wording
Chubb Life Suicide exclusion of 13 months, same triggers Alcohol and drug wording
AIA, Asteron Life, Partners Life Nothing confirmed Suicide period, alcohol and drug wording

Wordings change, and a policy bought years ago may differ from the current one. The words that count are in your own policy document, in the exclusions section. If you hold a policy on someone who has died, or are thinking of applying, ask the insurer or a licensed adviser to point to the clause. Do not assume a policy pays or does not pay on this page's say-so.

The coroner, and how long things take

When a death is sudden or unexplained, a coroner decides whether a post mortem is needed and whether to open an inquiry. The Coroners Court says a post mortem is usually done the next working day, sometimes 2 or 3 days later. The body is usually released later the same day, though it can take 2 or 3 days for suspicious deaths or complex examinations. The final report "can take several months or longer" (Coroners Court).

Burial or cremation follows the coroner's release of the body, not the final report, and the Coroners Court advises families to start arrangements early so they are ready when that happens. An insurer's claim decision is a separate step. Momentum says valid claims are paid without unnecessary delay and usually within 48 hours of approval, but approval is the step that starts that clock, and we found no published timeframe for it (Momentum Life: Claims). For general timing, see how long a life insurance claim takes.

If a policy does not pay, funeral costs still fall due. The Work and Income Funeral Grant has a maximum of $2,697.43 (page updated 24 June 2026) and is means-tested for a partner or child, and prepaid funeral cover can stop you getting it (Work and Income). A bank can release money from the deceased's account towards the funeral (govt.nz). See paying for a funeral and what to do when someone dies.

If a claim is declined

Momentum's complaints line is 0800 108 108 ([email protected]), and it acknowledges complaints within 2 business days (Momentum Life: Complaints). The Quick Life wording says its internal process aims for a formal response within 2 months, after which you get a letter of deadlock and up to 3 months to go to the Insurance & Financial Services Ombudsman Scheme (IFSO). IFSO is free, and its assessment is binding on Momentum. For other insurers, complain to the insurer and then to the dispute scheme it names. IFSO is on 0800 888 202 and covers insurers that are participants in the scheme; it says declined claims because of exclusions are a common complaint (IFSO).

For anyone thinking of applying

A guaranteed acceptance policy is not a promise to pay in every case. If alcohol or drug use is part of your history, Quick Life will not ask, but the exclusion still stands at claim time. Fully underwritten cover through an adviser asks health and lifestyle questions; answer them completely. IFSO case notes show insurers reducing or avoiding claims for non-disclosure (IFSO).

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. Momentum Life Limited has an A.M. Best financial strength rating of B (Fair), affirmed 11 February 2026 (Momentum's financial strength page). Both Momentum policies are described on the Quick Life page and the guaranteed acceptance hub; what guaranteed acceptance is explains the first-2-years design. If your cover comes through an employer, read about converting group life cover. This page is general information, not advice. Grief support is listed on our grief support page.

Frequently asked questions

Does life insurance pay for an accidental overdose?

It depends on the wording. Under Quick Life, death caused by the effects of alcohol or drugs is excluded at any time, unless the drug was prescribed and taken as instructed. Under Funeral Insurance, an accidental death within 90 days of the accident is paid from the start if it meets the policy's definition of an Accident.

Does the exclusion apply to prescribed medicine?

Quick Life's exclusion has an exception for a prescribed drug taken exactly as instructed by a registered New Zealand doctor. Other insurers' wordings may differ.

Does Funeral Insurance exclude alcohol or drugs?

The wording we read has no alcohol or drug clause. Its limits are the 24-month accident-only window and the Accident definition.

Will a coroner's inquiry delay the funeral?

The Coroners Court says the body is usually released the same day as the post mortem, and that it can take 2 or 3 days in complex cases. The final report can take months.

References

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