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

Life insurance exclusions in NZ: what isn't covered?

Most New Zealand life policies pay when the person insured dies from illness or an accident. The two underwritten cover wordings we read list one exclusion, suicide or self-harm in the first 13 months. Momentum's Quick Life, which asks no health questions, has a longer list: pre-existing conditions and suicide for two years, then alcohol or drug effects, war, terrorism, crime and dangerous jobs or pastimes.

In short

What counts as an exclusion, and what is only a wait?

A life insurance exclusion is a clause that lets the insurer refuse a claim for a stated cause or circumstance. Some last for the life of the policy. Others are an initial restriction: for a set period at the start, after an increase, or after the policy is reinstated, the insurer will not pay for a stated cause, and after that period the cover works normally. The difference matters because a wait ends and an exclusion does not. A third group is individual: terms added for one person when they apply, such as a loading, a condition excluded for a time or for good, or a residency exclusion. Those appear on the schedule you receive, not in the general wording. This page keeps the three apart and shows which one each clause is. It describes wordings we read on 20 October 2026; yours may differ, and the document in your hand always wins.

Clause by clause: two underwritten wordings against Quick Life

Underwritten cover means the insurer asks about your health and lifestyle before it accepts you. Quick Life is guaranteed acceptance: no health questions, so more of the risk is handled by exclusions after the sale. The table shows what each cover wording lists. "Not listed" means we did not find it in that cover wording, not that no other document could contain it: the Fidelity wording is read with the separate LifeProtect terms and conditions and your schedule, and Chubb's with the general terms of your policy.

Situation Fidelity LifeProtect Life Cover Chubb Life & Living Life Cover Momentum Quick Life
Suicide or intentional self-harm Death "by their own hand" excluded for 13 months from the start, reinstatement or an increase (CPI increases excepted); cover cancelled and premiums kept Excluded for 13 months from commencement, an increase (not inflation) or reinstatement; applies to the increased amount only Excluded for the first 2 years "regardless of your mental state"; the 2 years restart for an increase (increase only, unless automatic) and for reinstatement
Pre-existing conditions Not listed Not listed Excluded for the first 2 years
Alcohol or drug effects Not listed Not listed Excluded at any time, unless a prescribed drug was taken as instructed by a registered New Zealand doctor
War, insurrection, terrorism Not listed Not listed Excluded at any time
Criminal activity or illegal acts Not listed Not listed Excluded at any time
Dangerous job or pastime Not listed; assessed at underwriting Not listed; assessed at underwriting Excluded at any time, as defined in the policy
Terms set for you Loadings and exclusions set at underwriting Same A few conditions can be permanently excluded in your schedule

Sources: the three wordings linked in the references. Fidelity's wording also says the self-harm exclusion does not apply where the cover replaced similar cover of at least 13 months with another insurer, up to the replaced sum insured, and you prove it at claim time.

Initial restrictions: the suicide and pre-existing windows

Suicide. Fidelity and Chubb both use 13 months, not 12. Quick Life uses two years. The detail of how the clock runs, and what a coroner's finding does, is on our page about whether life insurance covers suicide. Momentum's Funeral Insurance has no separate suicide clause; its only early restriction is the 24-month accident-only rule below. If you or someone close to you is struggling, call or text 1737 any time to talk to a trained counsellor (1737 Need to talk?).

Pre-existing conditions. Quick Life defines one as any illness, condition or symptoms in the 2 years before the policy started, an increase or a reinstatement, including anything treated, noticed (even if undiagnosed) or that you would reasonably have been aware of. It names markers: very high blood pressure, cholesterol over 7.0, a BMI over 40, or complications related to diabetes. The same two-year restriction applies to a terminal illness diagnosis. If someone dies of a pre-existing condition in the first two years and no claim is payable, premiums are refunded. After the two years the condition is covered, except any specific conditions permanently excluded in the schedule. Underwritten insurers handle existing conditions earlier: Asteron says it can usually still offer cover by adding a stand-down period, raising the premium, or excluding the condition for a set time or permanently (Asteron).

Funeral Insurance. In the first 24 months Momentum's Funeral Insurance pays only if the death is the direct result of an accident and happens within 90 days of it. Any other death in that window pays nothing and all premiums for that person are refunded (Momentum Funeral Insurance wording). Total premiums over the years can add up to more than the benefit, and the benefit may not cover the whole funeral.

Quick Life's permanent exclusions

The wording sets these out in two places, so read them as one list. Quick Life will not pay for a death caused by the effects of alcohol or drugs, war or war-like activity, insurrection, terrorism, criminal activity or illegal acts, or a dangerous job or risky pastime. The definition of the last one reads "any high-risk job or activity, such as" handling explosives or weapons, working 40 metres underwater, driving or riding faster than 130 km/h (outside commercial flights), taking part as a professional sportsperson, and active duty in the armed forces. The wording adds that these activities "can impact your ability to claim".

Two points follow. First, "such as" means the list is examples. Second, the wording we read does not show a question about your job or hobbies at application. The clause bites at claim time, so a person who takes up a listed activity later is also caught. If you do any of these things, ask Momentum before you apply, and read the wording rather than the product summary: Momentum's Quick Life web page leaves the dangerous job clause out.

How underwritten cover handles risky jobs, hobbies and residency

An underwriter asks about your work, health, pastimes and travel, then offers terms: standard, with a loading, with an exclusion, postponed, or declined. Fidelity Life offers a pre-assessment for "medical, occupational, financial or hazardous pursuits risks" before you apply, which it calls "an indication of possible terms only" and not an offer (Fidelity Life underwriting guide). Fidelity also says exclusions and loadings can often be reviewed after a period. The point is that a risky hobby is priced or limited for you, in writing, before you pay, rather than discovered at claim time.

Residency is handled the same way. Fidelity applies a residency exclusion to lump sum cover for anyone who is not a permanent resident or citizen. Chubb's guide describes an "Expiry of Visa Exclusion" for work-visa holders, under which no claim is payable if the visa has expired or not been renewed, and which ends when the person gains permanent residency or citizenship (Chubb Life underwriting guide, May 2025). Both guides are written for advisers and are guidelines, not promises.

Things that are not exclusions but can still stop a payout

How to check your own policy wording

  1. Find the exclusions or "what we don't cover" heading in the cover wording, then the general terms, then the schedule. Read all three.
  2. Write down every start date: the policy start, each increase and any reinstatement. Early restrictions run from each.
  3. Mark which limits are a wait and which are permanent.
  4. Check the schedule for terms added for you, such as a loading or a condition excluded.
  5. Ask the insurer or a licensed adviser to explain any clause that uses a defined word.
  6. If you replace a policy, keep the old one running until the new one is in force, because a new policy can restart exclusions (FMA). For a no-health-question option, see life insurance with no medical exam.

Advice is provided by Craig Smith Business Services Limited, trading as Smiths Insurance & KiwiSaver, a licensed Financial Advice Provider (FSP712931). This page is general information, not personal advice. 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 and our disclosure. Momentum Life Limited has an A.M. Best financial strength rating of B (Fair), which sits in A.M. Best's "Vulnerable" range, affirmed 11 February 2026 (Momentum's financial strength page). Details of the Momentum plans are on the Quick Life page, and the guaranteed acceptance hub compares the options. The buttons on this page lead to Momentum's own online application. Last reviewed 20 October 2026.

Frequently asked questions

What deaths are not covered by life insurance?

It depends on the wording. In the two underwritten wordings we read, only suicide or self-harm in the first 13 months is listed. In Quick Life, pre-existing conditions and suicide are excluded for 2 years, and alcohol or drug effects, war, terrorism, criminal activity and listed dangerous jobs or pastimes are excluded at any time. Your schedule may add terms for you.

Does life insurance cover all types of death?

Mostly illness and accident, yes, once any early restriction has passed. The exceptions are the causes the wording lists. Momentum's Funeral Insurance is narrower at the start: only accidental death is paid in the first 24 months.

Is a pre-existing condition excluded forever?

Not in Quick Life, where the exclusion lasts 2 years, unless your schedule permanently excludes a specific condition. Underwritten insurers decide case by case.

Does life insurance pay if I die doing a dangerous sport?

Underwritten insurers set terms for hazardous pursuits you declare. Quick Life excludes a dangerous job or risky pastime, with professional sport named, at any time.

References

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