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

Life insurance for young adults in New Zealand, 18 to 25

Most 18 to 25 year olds do not need life insurance unless someone relies on them or would inherit a debt. If they do, a healthy young person can usually get more cover for less through fully underwritten cover from an adviser. Momentum Life's Quick Life accepts eligible New Zealand residents from 18, with no health questions and a 2-year pre-existing condition exclusion.

In short

A four-question decision path

Answer these four questions honestly.

Question If yes If no
1. Does anyone rely on your income, such as a partner, child or parent? Size cover to what they would lose and compare underwritten and Quick Life cover for that amount Go to question 2
2. Do you share a debt that would pass to someone else, such as a joint mortgage or a loan someone guaranteed? Size cover to your share of that debt Go to question 3
3. Is a lender asking for cover as a condition of a loan? Read the loan offer: the lender's terms are what count Go to question 4
4. Do you want to be assessed while healthy, knowing it costs money now? It is a choice, not a need; talk to an adviser You may not need life cover yet

Debts in your name alone are paid from your estate (Administration Act 1969, s 26); debts held jointly or guaranteed by someone else are different, so check with the lender. On the student loan, Inland Revenue says student loans are written off when the borrower dies (IRD: letting us know someone has died). See do you need life insurance for a mortgage and first home buyer insurance for the home-loan angle.

What it costs at 25

QuoteHub's Premium Index starts at age 25, so it has nothing for 18 to 24. These are indicative monthly costs from insurers' published rate cards as at 8 September 2026, stepped, occupation class 1, standard rates, for $500,000 of life cover. Each range runs across the insurers that priced the row, and your own premium depends on underwriting.

Age 25 Age 30 Age 40
Man, non-smoker $40 to $50 $30 to $40 $40 to $50
Woman, non-smoker $20 to $30 $20 to $30 $35 to $40
Man, smoker $60 to $80 $50 to $80 $90 to $110
Woman, smoker $35 to $45 $35 to $45 $60 to $80

Three things stand out. Between 25 and 30 the ranges did not rise in this snapshot. Smoking is the biggest lever you control: in your twenties and thirties the Index shows smoker cost at about 1.5 to 1.7 times the non-smoker cost. Fidelity Life and Chubb Life both ask for no tobacco or nicotine replacement, including vaping with nicotine, for 12 months before they will rate you as a non-smoker; Momentum asks for 24 consecutive months (Fidelity Life, Chubb Life Essential Underwriting Guide, Momentum Quick Life wording). And these are stepped premiums, which re-price every year with age. Buying early does not lock today's price; what it can do is get you assessed on today's health, before a condition appears that would draw a loading or exclusion. Whether that is worth paying for at 20 is your decision. The Index method is on the methodology page.

Quick Life or underwritten cover at 18 to 25?

Quick Life is guaranteed-acceptance life cover issued by Momentum Life Limited. It accepts residents from 18 to 65, asks no health questions or medical exam, and offers $50,000 to $300,000 per person, rising 3% a year to 75 or a $500,000 cap per person. Premiums step up yearly until 75 and are fixed after that.

The limits matter more for a young adult than they look:

A fully underwritten application asks about your health, family history, pastimes and smoking, and the insurer decides terms. If you are healthy, a licensed adviser can usually get more cover for less than a no-health-question product. If you have a condition that makes underwritten terms uncertain, Quick Life is a way to have cover in place now, accepting the 2-year limit. Chubb and Fidelity publish underwritten life cover entry ages from 10 and 16, so age is not the barrier (Chubb, Fidelity).

Momentum's Funeral Insurance starts at 40, and in its first 24 months it pays only for accidental death, so the Funeral button on this page is for older readers. For under-40s, funeral money is a savings question, not an insurance one.

What about income protection and ACC?

If you work, income protection and trauma cover protect you while you are alive, which life cover does not. ACC covers accident injuries for everyone in New Zealand but not illness (ACC: Injuries we don't cover). See life insurance in your 20s, life insurance for singles and income protection for the full set.

Before you apply

  1. Decide whether anyone would lose out, and size cover to that.
  2. Get an underwritten quote and a Quick Life comparison for the same amount.
  3. Answer every question fully. IFSO has published cases where an insurer avoided or reduced a claim for non-disclosure (IFSO).
  4. Check how the policy treats pastimes you do.
  5. Use the life insurance calculator and ask an adviser if you are unsure.

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's A.M. Best financial strength rating is B (Fair), affirmed 11 February 2026, and Momentum's own table groups B in its "Vulnerable" range; read its financial strength page. The buttons on this page start Momentum's online quote. More on the product is on the Quick Life page and the Momentum Life hub.

Frequently asked questions

Can an 18 year old get life insurance in NZ?

Yes. Quick Life accepts eligible New Zealand residents from 18, and underwritten insurers publish entry ages below that.

Is it worth buying life insurance in your twenties?

Only if someone relies on you or would inherit a debt, or if you want to be assessed while healthy. Otherwise it is optional.

Quick Life does not pay for death caused by the effects of alcohol or drugs, at any time. Check any other policy's exclusions in its wording.

References

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Explore related pages: Life Insurance, Income Protection, Health Insurance, Trauma Insurance, What You Get.