Life insurance for single parents in New Zealand
Life insurance for a single parent pays a lump sum if you die, so that the person caring for your children has money for the mortgage or rent and living costs. The cover is only half the plan. The other half is deciding who receives the money, who manages it for children under 18, and who cares for them. Momentum's Quick Life offers $50,000 to $300,000 with no health questions, ages 18 to 65, but excludes pre-existing conditions and suicide for the first 2 years.
In short
- Fully underwritten cover through an adviser asks health questions and can suit a healthy parent better. Quick Life asks none and accepts ages 18 to 65, with a 2-year early exclusion.
- A beneficiary named on a Quick Life policy is paid directly. The wording says nothing about a beneficiary's age, so do not name a young child without a plan for who would manage the money.
- If no beneficiary is listed, Quick Life pays the estate, and the will decides. A will can create a testamentary trust and name a testamentary guardian.
- A parent can appoint a testamentary guardian by will or deed (Care of Children Act 2004, s 26). Community Law warns that this does not automatically give day-to-day care, and the appointment can be challenged.
- Government help exists, but the Orphan's Benefit applies only where each parent is dead, missing or seriously disabled.
Start with the question cover answers
If you are the only adult, your income pays the housing, food and school costs. Cover is there for the people who would lose it. A sensible starting list, before any quote:
- Housing: the mortgage balance, or the years of rent you want the children's carer to be able to pay.
- Living costs: a year or more of the household's costs, so the carer can reduce work or adjust.
- Debts: debts in your name alone are paid from your estate (Administration Act 1969, s 26).
- Children's costs: school, activities, tertiary study.
- Funeral: a rough allowance. See funeral costs.
How much life insurance do I need sets out how to turn that into a number. Our own wider guide on insurance for single parents covers income protection, trauma and prioritising on one income. This page covers what happens to the money.
Guaranteed acceptance or underwritten
| Quick Life (guaranteed acceptance) | Fully underwritten cover via an adviser | |
|---|---|---|
| Health questions | None | Yes, plus possible records and tests |
| Ages | 18 to 65 | Varies by insurer |
| Amount | $50,000 to $300,000 at the start, rising 3% a year to age 75 or a $500,000 cap per life | Varies; higher amounts available |
| Early restriction | First 2 years: pre-existing conditions and suicide excluded | Depends on the policy |
| Occupation and pastimes | Not asked at application; a dangerous job or pastime can stop a claim | Asked and assessed |
| Premium | Stepped: re-set each year for age, gender and smoking status, then fixed from 75 | Stepped or level, depending on the product |
Quick Life is issued by Momentum Life Limited. In the first 2 years, a death from a pre-existing condition, or by suicide or intentional self-harm, is not paid; if death is from a pre-existing condition in the first 24 months and no claim is payable, premiums are refunded. Always excluded are war, terrorism, criminal activity, the effects of alcohol or drugs (unless prescribed and taken as instructed) and dangerous jobs or pastimes listed in the wording.
Guaranteed acceptance mainly suits people who would be declined or heavily loaded elsewhere, or who want cover in place without health questions. A healthy parent can usually get more cover for less through fully underwritten cover via an adviser.
What cover costs
These are ranges, not Momentum prices. QuoteHub's Premium Index shows the indicative monthly cost from insurers' published rate cards as at 8 September 2026, for non-smokers, stepped premiums, occupation class 1 and standard rates, rounded outward across six insurers. Your own premium depends on underwriting.
| Age and amount | Man, typical monthly cost | Woman, typical monthly cost |
|---|---|---|
| 30, $500,000 | $30 to $40 | $20 to $30 |
| 40, $500,000 | $40 to $50 | $35 to $40 |
| 40, $250,000 | $25 to $70 | $20 to $60 |
The $250,000 rows are wide because that panel includes a guaranteed-acceptance product alongside underwritten ones. See how we calculate premiums and the life insurance premium ranges. Stepped premiums rise each year; the Financial Markets Authority says cover that is cheaper at first can cost more over time (FMA).
Who gets the money
This is where single parents most often have a gap. Quick Life's wording says the benefit is paid to the owner or the nominated beneficiary. If no beneficiary is listed, or the beneficiary has also died, the benefit goes to your estate. Only the policy owner can nominate or change a beneficiary.
The wording does not say how a beneficiary under 18 would be paid. We could not find a rule in the Momentum documents, so ask Momentum. In general, your options are:
- Name an adult you trust. They receive the money. The arrangement then depends on them using it for the children. That is a matter of trust, not law, so get legal advice before relying on it.
- Leave the beneficiary blank, and let the estate receive it. The will then decides who gets what, including a testamentary trust. The estate route has a cost: if a will or letters of administration are needed and the sum is over $40,000, a court grant may be needed (Asteron: claims, one insurer's guidance); the Ministry of Justice says banks, KiwiSaver providers and insurers may release up to $40,000 without a grant, but may choose not to (Ministry of Justice guide). The probate fee is $275 (Ministry of Justice), plus legal fees, and the time to a grant varies: the guide says a typical 15 working days if nothing more is needed, while govt.nz says it usually takes 6 to 8 weeks (govt.nz).
- Ask a lawyer about a trust. Quick Life's wording lists owners who are the insured, or the insured's parents or siblings with consent. A trust is not listed, so do not assume a trust can own it.
The will does the heavy lifting
Community Law says: "If your child or children are too young to receive the property outright, you can establish a testamentary trust, and appoint trustees to manage it on your kids' behalf." The trustee can use some of the money for the child's welfare, including living and education costs, and the child gets the money at the age the will sets (Community Law: Beneficiaries of your will). A trustee cannot be under 18 (Community Law: Trustees). Without a will, intestacy rules apply; see dying without a will and testamentary trusts.
A testamentary trust comes into being only after death, by the will (Wills Act 2007, s 8(4)).
A testamentary guardian is about care
Section 26 of the Care of Children Act 2004 says a parent "may by deed or will" appoint a person as testamentary guardian after the parent's death. If you were a guardian when you died, the testamentary guardian is from that time, if aged 20 or older, either sole guardian or a guardian in addition to any other guardian (Care of Children Act 2004, s 26, version as at 17 February 2026). Section 26(5) adds that an appointment does not, by itself, give the role of providing day-to-day care.
Community Law says a testamentary guardian will have to apply to the Family Court for a Parenting Order to be formally appointed, and the surviving parent or other guardians can challenge that. It says an appointment is how you tell the court who you would like to look after your children, and the court will take it into account (Community Law). In practice: name a guardian, speak to that person first, and get a lawyer to draft it. See making a will.
What government help covers
Life cover is not the only support, and it is not a substitute.
- Orphan's Benefit. Under the Social Security Act 2018 it applies where each parent is dead, missing or has a long-term serious disablement. Work and Income lists the weekly rates from 1 April 2026 as $301.53 for children under 5, $303.62 for 5 to 9, $327.16 for 10 to 13 and $350.58 for 14 and over, non-taxable (Work and Income: Orphan's Benefit rates). If the other parent is alive and able to care, this benefit does not apply. Other income the child receives, including from a parent's estate, can affect it (Work and Income: Orphan's Benefit). See also the Orphan's Benefit guide.
- Your own benefit ends. Sole Parent Support and some other main benefits end 28 days after death if the person leaves a child not entitled to a lump-sum ACC payment, though an instalment payable after death can go to the carer of a dependent child (Social Security Act 2018, ss 326 and 346).
Next steps
- Decide cover with an adviser, using the list above.
- Make a will with a testamentary trust and a guardian.
- Decide the beneficiary, then check it with Momentum or your insurer.
- Tell the guardian and trustee where the documents are.
About the insurer and how we are paid
Momentum Life Limited has an A.M. Best Financial Strength Rating of B (Fair), which Momentum's own table places in its "Vulnerable" range, and a solvency ratio of 107% at 30 June 2026 (Momentum: Financial strength). The buttons on this page lead to Momentum's online quote. Read the first-2-years rule above before you use them. Related pages: Quick Life, Momentum Life, what is guaranteed acceptance and the guaranteed acceptance hub.
QuoteHub is a Momentum Life partner. Smiths Insurance & KiwiSaver may receive a commission if you buy through our link; see how we are paid. 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 legal or personal advice.
Frequently asked questions
Can I name my child as the beneficiary?
The Quick Life wording lets the owner nominate a beneficiary and says nothing about age. We found no rule for paying a child under 18. Ask Momentum, and consider a will with a testamentary trust.
Does life insurance pay out without a will?
If no beneficiary is named, Quick Life pays the estate. Without a will, intestacy rules decide who inherits, and a court grant may be needed.
Is a testamentary guardian the same as a trustee?
No. A guardian is about the child's care and upbringing; a trustee manages property for the child. They can be the same person or different people.
References
- Momentum Life: Quick Life Insurance Policy Wording (November 2025), retrieved 17 October 2026
- Momentum Life: Financial strength, retrieved 20 October 2026
- Care of Children Act 2004, retrieved 20 October 2026
- Wills Act 2007, retrieved 20 October 2026
- Administration Act 1969, retrieved 20 October 2026
- Social Security Act 2018, retrieved 20 October 2026
- Community Law: Beneficiaries of your will, retrieved 20 October 2026
- Community Law: What is a trustee, retrieved 20 October 2026
- Asteron Life: Claims, retrieved 20 October 2026
- Ministry of Justice: Probate information and guidance, retrieved 20 October 2026
- Ministry of Justice: Applying for probate, a practical guide (PDF), retrieved 20 October 2026
- govt.nz: Wills, probate and estates, retrieved 20 October 2026
- Work and Income: Orphan's Benefit, retrieved 20 October 2026
- Work and Income: Orphan's and Unsupported Child's Benefit rates, retrieved 20 October 2026
- Financial Markets Authority: Insurance, retrieved 20 October 2026
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