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

Life insurance questions NZ forums and Reddit raise, checked against the wording

Reddit blocked our attempts to read it when we prepared this page, so we do not report what any thread says and we quote no user. What we can do is take the questions people typically bring to forums and check each against sources you can open: policy wordings, the FMA and the Insurance & Financial Services Ombudsman (IFSO). The short version is that the usual worries have a factual basis, particularly about premiums that rise and funeral policies that can cost more than they pay. Forum posts are not financial advice.

In short

Why we are not quoting Reddit

Our keyword research found that people search for life insurance questions together with the word Reddit, including searches about particular insurers' reviews and complaints. Our research notes record that attempts to read r/PersonalFinanceNZ returned an access error on every route (HTTP 403), so no thread was read. A summary of "what Redditors say" would be invented, so we have not written one.

Forum posts have limits worth knowing: the writer is usually anonymous, may not hold a licence, may describe an old policy that has since changed, and may be selling something. If a thread's claim matters to you, check the date and then check the wording, as we do below. This page is general information and is not a substitute for advice.

Question 1: Do life insurance premiums keep rising?

Stepped premiums are recalculated each year for your age. Fidelity says Yearly Renewable Term "rises each year", while its Level Term "starts a bit higher" and stays the same for the term (Fidelity). The FMA says "Most premiums go up annually based on your age or inflation" and that "policies that are cheaper initially can be more expensive long-term" (FMA: Insurance).

Level premiums are not unconditional. IFSO published a case of a "level to age 80" policy that converted to Rate for Age at 80, when the monthly premium went from $49 to $190; the complaint was not upheld (IFSO: Increasing premiums). Read what happens at the end of any level period. Our pages on stepped versus level premiums go further.

Question 2: Are funeral policies a bad deal?

The answer depends on how long you live and what you want the money for. Momentum's Funeral Insurance wording says total premiums "could exceed the Benefit" and the Benefit "may not cover the cost of a Life Insured's funeral". In the first 24 months it pays only for accidental death, and any other death in that window pays no benefit and refunds all premiums. After 24 months it pays for death from any cause. Premiums are level until the 89th birthday and then stop. Setting money aside is the other way to prepare.

IFSO's published funeral case involved a 2010 policy of $20,000 with premiums to age 90 and no warning they could exceed the sum; the insurer refunded all premiums, and IFSO's note said "It is not a savings product" (IFSO). In December 2025 IFSO said insurers should warn that you may pay more than you get back "in the policy, on the website and in any advertising" (IFSO). Test your own numbers with the funeral insurance break-even calculator and read is funeral insurance worth it.

Question 3: When is full medical underwriting worth the paperwork?

Underwriting is how an insurer assesses your health before it agrees terms. Fidelity needs only an application form and Chubb only a personal statement up to $500,000 at every age band. Medical evidence is required from $500,001 at ages 61 and over, and any condition you disclose can trigger more (Fidelity, Chubb). So for many applicants the paperwork is lighter than the question suggests, and for larger amounts it is heavier.

A healthy person can usually get more cover for less with fully underwritten cover through an adviser. The cost of getting it wrong is real: IFSO has published cases where insurers avoided or reduced claims for non-disclosure, including one where a childhood colonoscopy and a 2013 anaemia diagnosis mattered, settled at half the life benefit (IFSO). Answer fully. See the underwriting process.

Question 4: Is guaranteed acceptance a sensible fallback?

It is a trade-off, not a trick. Guaranteed acceptance means no health questions at application. It does not mean cover from day one for everything.

Funeral Insurance Quick Life
Ages 40 to 75 18 to 65
Amount $3,000 to $30,000 $50,000 to $300,000, rising 3% a year to a $500,000 cap per person
First window 24 months: accidental death only; other deaths refund premiums 2 years: pre-existing conditions and suicide excluded; accidental death and new conditions covered
Premiums Level to the 89th birthday, then none Stepped to 75, then fixed

Quick Life also never pays for deaths from alcohol or drug effects, war, terrorism, criminal activity, or a dangerous job or pastime listed in the wording; occupation and pastime are not asked at application but matter at claim time. Compared: Momentum's two products, on the criteria in the table, as at 20 October 2026, from the policy wordings. Not every insurer is included. This is one adviser's reading, not a score. It suits people who would be declined or heavily loaded elsewhere, or who want cover in place without questions. See guaranteed acceptance versus full medical.

Question 5: Should I invest the difference instead?

This is a fair question, and we have no sourced return figure to put against any premium, so we give none. What the documents say: a term life policy has no cash value. Momentum's Quick Life wording says so, and AIA's says no surrender value. Insurance pays if a claim is made; saving builds a balance. The right mix depends on who relies on your income, how large the risk is, and how long a savings pot would take to match it. A savings balance does not pay out the same on day one as a life policy does. See is life insurance worth it.

How QuoteHub handles these concerns

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. That is a conflict, so we state it. Advice is provided by Craig Smith Business Services Limited, trading as Smiths Insurance & KiwiSaver, a licensed Financial Advice Provider (FSP712931). Momentum Life Limited's A.M. Best rating is B (Fair), affirmed 11 February 2026, a range Momentum's own table calls "Vulnerable", and Momentum's page says the rating "should not be read as a recommendation"; see Momentum's financial strength page. Reviewed on 20 October 2026 by the QuoteHub Adviser Team.

The buttons on this page open Momentum's application only. Use them if you have decided you want a quote. Quick Life is on its plan page.

Frequently asked questions

Is Reddit a reliable source for life insurance advice?

It can raise the right questions, but posts are anonymous, may be out of date and are not advice. Check any claim against the policy wording or a regulator.

Do life insurance companies often refuse to pay out?

We have no claims statistics for Momentum, and none are published. IFSO's published cases show insurers can avoid or reduce claims for non-disclosure, so answer health questions completely.

Is Quick Life a legitimate policy?

Quick Life is a guaranteed acceptance policy issued by Momentum Life Limited (FSP472286). Its limits are in the wording: a 2-year restriction on pre-existing conditions and suicide, and stepped premiums to 75.

References

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