Life Insurance Over 60 in NZ: Can You Still Get Cover?
Turning 60 does not mean the door to life insurance has closed. It does, however, mean the landscape looks different from the one you may have navigated in your 30s or 40s. Premiums are higher, some providers set hard entry-age limits, and the reasons for holding cover often shift from income replacement to estate planning and funeral cost protection.
The good news: several New Zealand insurers still accept applications from people in their 60s and even their 70s. In this guide we walk through the options available, what drives their cost, and how to decide whether cover still makes sense for your situation.
Why Life Insurance Changes After 60
Life insurance changes after 60 because claim probability rises with age, so insurers charge more to offset the greater likelihood of paying out within the policy term. Financial obligations also shift for many New Zealanders over 60, with the mortgage paid off or close to it, children independent and KiwiSaver balances grown over decades, moving cover towards estate planning and funeral costs.
At the same time, many people over 60 find their financial obligations have changed. The mortgage may be paid off (or close to it), children are financially independent, and KiwiSaver balances have had decades to grow. For some, life insurance becomes less critical. For others, particularly those with remaining debt, a financially dependent partner, or estate planning goals, it remains essential.
Can You Still Get Life Insurance After 60?
New Zealanders can still buy life insurance after 60, though entry ages differ by provider. New Zealand Seniors accepts applicants up to 79 for up to $200,000 with cover to age 85, while AIA NZ, Partners Life and Fidelity Life set standard entry ages at 65, and Southern Cross Life accepts applicants in their mid-60s.
| Provider | Maximum Entry Age | Maximum Cover Amount | Cover Continues Until | Key Features |
|---|---|---|---|---|
| New Zealand Seniors | 79 | $200,000 | Age 85 | No medical exam, phone-based health questions, immediate cover |
| Southern Cross Life | Mid-60s (varies) | Up to $1,500,000 | Varies by product | Terminal illness benefit, 10% discount for Southern Cross Health members |
| AIA NZ | 65 (standard products) | Up to $5,000,000 | Varies | Comprehensive product range, Vitality wellness programme |
| Partners Life | 65 (standard) | Varies | Varies | Flexible policy structures, strong claims history |
| Fidelity Life | 65 (standard) | Up to $5,000,000 | Age 100 | Standalone or bundled options |
| Resolution Life | 50+ specialist products | Varies | Varies | Targeted at older applicants |
Important note: Maximum entry ages can differ between product types within the same provider. Term life, funeral cover, and guaranteed acceptance products each have their own age limits. Always confirm current entry ages directly with the provider or through a licensed adviser.
The Premium Reality: What Cover Costs After 60
There is no way to soften this: life insurance premiums for over-60s are significantly higher than those for younger applicants. This reflects the increased risk insurers carry.
How Premiums Scale With Age for $500,000 Cover (Non-Smoker)
| Age | Male (Non-Smoker) | Female (Non-Smoker) | Notes |
|---|---|---|---|
| 35 | Baseline | Below the male rate at the same age | Baseline comparison |
| 50 | Materially above the age-35 baseline | Below the male rate at the same age | Premiums rising noticeably |
| 55 | Higher again than at 50 | Below the male rate at the same age | Substantial annual cost |
| 60 | Substantially higher than at 55 | Below the male rate at the same age | Limited providers at this level |
| 65 | Highest of the bands shown | Highest for women, still below the male rate | Few standard products available |
The pattern above holds across the market, but the actual price varies by provider, health status, and policy type. Smokers and vapers can expect costs three to four times higher than the non-smoker rates. Only a personalised quote will tell you your own figure.
Stepped vs. Level Premiums
If you already hold a policy with stepped premiums, your costs have been increasing each year as you age. A policy taken out in your thirties will cost substantially more by the time you reach 65, with further annual increases of 2% to 15% still to come.
Level premiums lock in a fixed rate for a set term, offering predictability. However, at age 60, the window for level premiums is narrow since most level-premium products require a minimum term that extends well beyond typical cover-end ages.
For new applicants over 60, stepped premiums are often the only option, which means budgeting for annual increases is essential.
Funeral Cover: A Practical Alternative
Funeral cover is the practical alternative for over-60s in New Zealand who find a full term life policy unnecessary or unaffordable. Funeral cover pays $10,000 to $200,000 against final expenses, uses simplified phone-based health questions rather than a medical exam, and some providers release 20% immediately to meet funeral costs.
How Funeral Cover Differs from Term Life Insurance
| Feature | Funeral Cover | Term Life Insurance |
|---|---|---|
| Cover amount | $10,000 to $200,000 | $250,000 to $1,500,000+ |
| Primary purpose | Funeral costs and immediate expenses | Broader financial protection for dependants |
| Advance payout | Some providers pay 20% immediately for funeral costs | Full amount paid on verified claim |
| Premiums | Lower and more manageable | Higher, especially for older applicants |
| Medical requirements | Often simplified (phone-based questions, no exam) | May require medical examination |
| Best suited to | Those wanting to cover final expenses without burdening family | Those with dependants, significant debts, or estate obligations |
What Funerals Actually Cost in New Zealand
Funeral costs in New Zealand have been rising steadily. Here is a breakdown of current costs by region.
| Region | Estimated Cost Range (2025/2026) |
|---|---|
| Auckland | $10,000 to $16,000 |
| Wellington | $9,000 to $14,000 |
| Christchurch | $8,000 to $14,000 |
| Rural areas | $6,000 to $10,000 |
| Full service (national average) | $16,000 to $18,000 |
| National average (standard) | Approximately $10,000 |
Burial typically costs more than cremation. The national average for burial sits around $9,607 compared to $5,406 for cremation (excluding extras like headstones, flowers, or catering). Council burial fees alone range from $1,823 (Makara, Wellington) to $7,207 (New Plymouth).
The WINZ Funeral Grant of $2,616 is available for eligible families, but this covers only a fraction of the total cost.
Guaranteed Acceptance Products
Guaranteed acceptance products cannot decline you on health grounds, using a short set of phone-based health questions instead of a medical examination. Cover is usually capped around $200,000 and suicide is typically excluded for the first 13 months. New Zealand Seniors is the most prominent provider, covering applicants aged 45 to 79 through eight health questions.
What guaranteed acceptance usually means:
- No medical examination required
- A limited set of health questions answered by phone
- Immediate cover for death by any cause (suicide is typically excluded for the first 13 months)
- Lower maximum cover amounts (often capped at $200,000)
- Premium increases that are not tied to your age (a significant advantage for budgeting)
New Zealand Seniors is the most prominent provider in this space, offering cover for applicants aged 45 to 79 with coverage extending until age 85. Their simplified underwriting process involves answering eight health and medical history questions over the phone.
Reducing Cover Strategically
Reducing cover in stages beats cancelling it outright, and a common New Zealand approach steps down by age band. Full cover holds from 50 to 55, drops to the mortgage balance plus two to three years of income from 55 to 60, then remaining debt plus funeral costs from 60 to 65, and funeral cover of $30,000 to $50,000 from 65 to 70.
A Practical Reduction Strategy
| Life Stage | Suggested Cover Level | Rationale |
|---|---|---|
| Age 50 to 55 | Full cover (mortgage + income replacement) | Children may still be dependants, mortgage likely outstanding |
| Age 55 to 60 | Reduce to mortgage balance + 2 to 3 years income | Children becoming independent, debt reducing |
| Age 60 to 65 | Reduce to remaining debt + funeral costs | Most obligations reducing |
| Age 65 to 70 | Funeral cover only ($30,000 to $50,000) | NZ Super providing base income, minimal debt |
| Age 70+ | Consider whether cover is still needed | Review annually based on health and finances |
This graduated approach can save thousands in premiums while maintaining meaningful protection at each stage.
When Life Insurance Still Makes Sense at 60+
Life insurance still makes sense after 60 when a mortgage remains and a partner could not service it on NZ Super alone, when a partner depends on your income or superannuation, when personal guarantees on business lending persist, when you want to leave a defined legacy, or when you want funeral costs covered.
You should consider maintaining or taking out cover if:
- You still have a mortgage. If your partner could not service the mortgage on NZ Super alone, life insurance provides a safety net.
- Your partner depends on your income or NZ Super. If you are still working or your partner relies on your superannuation entitlement for shared living costs, a payout could bridge a significant gap.
- You have business debts or guarantees. Personal guarantees on business lending do not disappear when you turn 60.
- You want to leave a specific legacy. Some people use life insurance as an estate planning tool to ensure a defined sum passes to children or grandchildren, regardless of what happens to other assets.
- You want to cover funeral costs. Ensuring your family is not financially burdened by funeral expenses is one of the most common reasons for holding cover into retirement.
You may not need cover if:
- Your mortgage is paid off and you have no significant debts
- Your partner is financially independent
- You have sufficient savings or investments to cover funeral costs and provide for your partner
- Your KiwiSaver balance and other assets provide adequate financial security
Estate Planning and Legacy Considerations
Life insurance proceeds pass directly to the nominated beneficiary and avoid the delays of estate administration, which gives cover a specific role for over-60s in New Zealand. Common uses include an immediate cash injection for a surviving partner while the estate settles, equalising inheritances between children, clearing outstanding debts, and funding bequests or charitable donations.
Common estate planning uses include:
- Providing an immediate cash injection for a surviving partner while the estate is being settled
- Equalising inheritances between children (for example, if one child inherits a family business or property)
- Covering any outstanding debts so the estate passes to beneficiaries without encumbrances
- Funding specific bequests or charitable donations
If estate planning is a primary motivation, speak with both a licensed financial adviser and a lawyer who specialises in estate planning. The interplay between life insurance, trusts, wills, and relationship property can be complex.
Tips for Applying After 60
Five practices improve outcomes when applying for life insurance after 60 in New Zealand: disclose every health detail honestly, since incomplete information is the most common reason claims are declined; compare multiple providers because acceptance criteria differ; work with a licensed adviser; review cover annually around 1 April when NZ Super rates update; and consider joint policies.
Disclose everything honestly. Inaccurate or incomplete health information is the most common reason for claim declines. Answer all questions truthfully, even if you think a condition is minor.
Compare multiple providers. Premiums and acceptance criteria vary significantly between insurers. What one provider declines, another may accept with a loading or exclusion.
Work with a licensed adviser. An adviser who works across multiple providers can identify the best option for your specific health profile and budget.
Review your cover annually. Circumstances change. Review your policy each year, particularly around 1 April when NZ Super rates are updated.
Consider joint policies. If both you and your partner need cover, some providers offer joint policies that may be more cost-effective.
Frequently Asked Questions
Can I get life insurance at 70 in New Zealand?
Yes, but options are limited. New Zealand Seniors accepts applications up to age 79 with cover continuing to age 85. Most standard term life providers have maximum entry ages of 65, so specialist senior products are typically the main option for applicants in their 70s.
Is life insurance worth it after 60?
It depends on your circumstances. If you have a mortgage, dependants, or specific estate planning goals, life insurance can still provide valuable protection. If your debts are cleared and your partner is financially secure, the high cost of premiums may not be justified. A licensed financial adviser can help you weigh the costs against the benefits.
How much does life insurance cost at 60?
Considerably more than at 50, and far more than the same cover would have cost in your thirties. For $500,000 of cover, a 60-year-old male non-smoker pays more than a female non-smoker of the same age, and a smoker pays three to four times the non-smoker rate. Funeral cover with a lower sum insured ($30,000 to $50,000) is considerably cheaper than full term life. Because provider appetite varies so much at this age, comparing quotes across insurers through an adviser matters more at 60 than it did at 40.
What is the difference between funeral cover and life insurance?
Funeral cover is a type of life insurance with a lower sum insured (typically $10,000 to $200,000) designed primarily to cover funeral costs and immediate expenses. Term life insurance offers higher cover amounts and is designed for broader financial protection. Funeral cover often has simplified underwriting, making it easier to obtain for older applicants.
Can I reduce my life insurance instead of cancelling it?
Yes, and this is often the recommended approach. Most providers allow you to reduce your sum insured, which lowers your premiums while maintaining some level of protection. Speak with your insurer or adviser about adjusting your cover to match your current needs.
Do I need a medical exam to get life insurance after 60?
Not always. Some providers, particularly those offering seniors-specific or funeral cover products, use simplified underwriting with phone-based health questions and no medical exam. Standard term life products may require a medical examination, particularly for higher cover amounts.
What happens to my life insurance when I retire?
Your life insurance policy continues as long as you pay the premiums, regardless of your employment status. However, retirement is a good time to review whether the cover level and cost are still appropriate for your changed circumstances.
References
New Zealand Seniors Life Insurance product information, 2025/2026
Southern Cross Life Insurance product terms, 2025/2026
MoneyHub NZ life insurance cost guide, 2025/2026
Statistics New Zealand, population and disability data, 2023
WINZ Funeral Grant eligibility and rates, 2025/2026
Council burial and cemetery fee schedules (various councils), 2025/2026
Disclaimer: This article is for informational purposes only and does not constitute personalised financial advice. Life insurance needs vary based on individual circumstances. We recommend consulting a licensed financial adviser before making any insurance decisions. Financial advice is provided by Craig Smith Business Services Limited, trading as Smiths Insurance & KiwiSaver, a licensed Financial Advice Provider (FSP712931). QuoteHub is a trading name. Henry Smith is a Financial Adviser (FSP1010699).
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