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

Can you arrange life insurance for your spouse?

Yes, in practice, but with your partner's involvement. New Zealand law does not require an insurable interest in the life covered, so a husband, wife or de facto partner can be the life insured on a policy you own. The insurer's own rules decide the detail: Momentum's Quick Life asks for each life insured's consent where a family member owns the policy, and covers couples through joint cover applied for together.

In short

What does the law say about insuring your spouse?

New Zealand does not ask you to prove an "insurable interest". A contract of life assurance is not void or illegal only because the person who took it out has, or had, no interest in the life of the person insured (Insurance Law Reform Act 1985, s 6). The Contracts of Insurance Act 2024 carries this forward in sections 75 and 76 when it comes into force on 15 November 2027 (not yet in force). So the legal question is not whether you may have an interest in your husband's life, because you do not need to show one. The practical questions are what the insurer requires and whether your partner takes part.

We found no New Zealand statute that makes covert insurance on a partner either lawful or unlawful in terms. We are not giving a legal opinion. What the sources do show is the insurer's side of it. Underwritten insurers ask the person to be covered about their own health and lifestyle, and non-disclosure can lead an insurer to reduce or avoid a claim (IFSO). Quick Life's wording says that where an immediate family member owns a policy covering a life insured other than themselves, "the consent of each Life Insured is required before the policy can be established" (Quick Life wording). QuoteHub's position is that cover on a spouse should be arranged openly, with their agreement.

Life insured, policy owner and beneficiary

The life insured is the person whose death triggers the benefit. The policy owner (the policyholder) is the person who holds the contract, pays premiums and can usually change it. The beneficiary is who the owner nominates to receive the money. The Contracts of Insurance Act 2024 defines a life insured as the person on whose death benefits are contingent. If you are both life insured and owner, as most people are, nothing needs untangling. It matters when one partner owns a policy on the other.

With Quick Life, the life insured is usually the owner, and only the owner can nominate or change a beneficiary. If the owner dies, ownership passes to the surviving joint owner, then the beneficiary, then the owner's estate. With Momentum's Funeral Insurance, benefits are paid to the owner, or if the owner has died to the nominated beneficiary, and a beneficiary must be a natural person.

Three ways couples set up cover

Set-up How it works What to check
Separate policies, each covering themselves Each partner is life insured and owner, and names the other as beneficiary Whether the beneficiary named is still right after any life event
One joint policy Two lives on one policy. On Quick Life you apply alone or with your partner; when one person is paid, the other stays covered (it is not first death only); $50 a year off when a partner is added Each life carries its own early restrictions; see below
One partner owns a policy on the other Possible with some insurers. Funeral Insurance allows "You or a Partner/Relative" as life insured Owner and entry-age rules; Quick Life's owner definition lists parents or siblings, not a spouse

Quick Life's wording defines a "Partner" as a New Zealander who is your legal spouse, de facto partner or civil union partner, listed in the schedule. Our page on joint life insurance compares joint and separate cover in more detail.

Underwritten insurers usually cover each person as a separate life assured, often under one policy number. Check how your insurer treats a claim on one of two lives.

What the early restrictions mean for each partner

If you arrange Quick Life for yourself and your partner, each of you has the first-2-years restriction. Pre-existing conditions and suicide are excluded for the first 2 years from the start (or from an increase or reinstatement), and premiums are refunded if death is from a pre-existing condition in that window and no claim is payable. Some causes are excluded permanently. Funeral Insurance for a partner aged 40 to 75 pays only for accidental death in the first 24 months. Premiums can add up to more than the benefit. Life insurance exclusions explains the clauses.

Does a policy avoid probate?

Not automatically. Community Law says life insurance proceeds are part of the estate only if they are payable to the estate; who is paid depends on ownership and the insurer's terms. Where a policy on your own life is expressed to be for the benefit of your spouse, de facto partner or children, section 75A of the Life Insurance Act 1908 says it creates a trust, and the money does not form part of your estate or become subject to your debts while the trust remains unperformed; if the policy was taken out and premiums paid with intent to defraud creditors, they can recover a sum equal to the premiums paid (Life Insurance Act 1908). The Contracts of Insurance Act 2024 repeats this in section 158 from 15 November 2027. The 1908 Act is the current law until then. This is different from owning a policy on your spouse.

Banks, KiwiSaver providers and insurers may release money without a court order if the amount held is under $40,000 each, but they may choose not to (Ministry of Justice). A larger sum payable to the estate can wait for probate, which the Ministry's guide says typically takes 15 working days if nothing more is needed, while govt.nz says 6 to 8 weeks is usual (govt.nz). Naming a beneficiary or setting up ownership clearly can avoid questions; see life insurance beneficiaries and estate planning and insurance, and take legal advice on trusts. If a partner has died without cover, see what to do when a partner died without life insurance.

What happens to the policy if you separate?

Nothing changes automatically. The Property (Relationships) Act 1976 treats the share of a life policy's value, or of the proceeds, that is attributable to the relationship as relationship property, except for policies where a third person is beneficially entitled (s 8(1)(g)). The court can make orders about policies (s 30), and nothing is divided on its own (Property (Relationships) Act 1976). Practically:

Tax

Inland Revenue's guidance is that insurance payouts are generally excluded income, with income protection payouts the usual exception (IRD). Ask an accountant about your situation.

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. 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). The buttons on this page lead to Momentum's own application; the plan page for Quick Life sets out the limits. Last reviewed 20 October 2026.

Frequently asked questions

Can I get life insurance on my husband?

Yes, you can arrange cover on his life, with his agreement and his own details. Whether you can be the owner depends on the insurer. Quick Life covers a couple through joint cover applied for together.

Can I get life insurance for my husband without his knowledge?

We do not arrange cover on anyone without their knowledge. Underwritten cover relies on his own health and lifestyle answers, and Quick Life's wording requires each life insured's consent where a family member owns the policy.

What if we are not married?

Quick Life and Funeral Insurance both treat a de facto partner or civil union partner as a Partner.

Who gets the money if my spouse dies?

The owner, or the beneficiary the owner named. If neither applies, the estate. Check the schedule.

References

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