When can life insurance premiums be refunded in NZ?
Life insurance premiums are generally not refunded, because you pay for cover over time. The exceptions are written into the policy. Momentum Life refunds premiums if you cancel in the first 30 days with no claim made, and in some deaths in an early window: all premiums on a Funeral Insurance death that is not accidental in the first 24 months, and Quick Life premiums where a pre-existing condition causes a death in that period with no claim payable.
In short
- The free-look period is set by each insurer's wording, not by a statute we could find. Momentum's is 30 days, from the policy start date on Quick Life and from the Acceptance Date on Funeral Insurance.
- Refund rules differ between Momentum's two plans. Funeral Insurance refunds all premiums for the person on any non-accidental death in the first 24 months. Quick Life refunds them only where a pre-existing condition causes a death in the first 2 years and no claim is payable.
- After the free-look period, cancelling gives no refund of premiums already paid.
- A policy that returns cash is a different product. Neither Momentum plan builds a cash value.
The cases where money comes back
| Situation | Momentum Funeral Insurance | Momentum Quick Life |
|---|---|---|
| Cancel within 30 days, no claim made | Full refund, 30 days from the Acceptance Date | Full refund, 30 days from the policy start date |
| Death from any cause but accident in the first 24 months | All premiums for that person since the Cover Start Date are refunded | Only for a death from a pre-existing condition, with no claim payable |
| Suicide in the first 2 years | Not a separate exclusion; same first-24-month rule | Excluded; no refund is stated |
| Benefit above the cap | Excess premiums on the newest policy refunded | Excess premiums refunded |
| Age or smoking status wrongly stated | Not addressed in the wording sections we read | Lower correct premium: difference refunded; true age over 65 at start: policy void, all premiums refunded |
| Cancel after 30 days | No refund of premiums | No refund of premiums |
Sources: the Funeral Insurance wording (17 August 2023) and the Quick Life wording (November 2025). A refund of all premiums on any early non-accident death is true of Funeral Insurance but not of Quick Life, so read the plan you are looking at.
The free-look period
A free-look period is a window after you take out a policy in which you can cancel and get your premiums back. Momentum's wordings give 30 days. Funeral Insurance says you have 30 days from the Acceptance Date to cancel "if no claim is made and receive a full refund of premiums paid by calling or writing to Momentum Life"; Quick Life says the same from your policy start date, by calling or emailing [email protected].
We read the Contracts of Insurance Act 2024 and found no statutory free-look right for life insurance, so what applies is in your own documents. Insurers differ. AIA's wording lets you return the policy within 15 days of receiving the policy document for a refund if no claim has been made (AIA Living umbrella wording v8). AA Life's funeral page offers a 100% refund in a 30-day no-obligation period (AA Life). For insurers whose free look we could not read, check the policy documents. See our page on insurance cooling-off periods.
Refunds when someone dies early
Both of Momentum's plans restrict the first stretch of cover, and the refund is the other side of that restriction. A summary of the early limits, so you do not misread the refund:
- Funeral Insurance, first 24 months. The benefit is paid only if death is the direct result of an accident and occurs within 90 days of it. Any other death pays no benefit, and all premiums for that person are refunded. The refund is made to the account associated with the policy, not paid as a lump sum to the estate. An increase or an added person starts a new 24-month window.
- Quick Life, first 2 years. Pre-existing conditions and suicide are excluded. If the life insured dies from a pre-existing condition within the first 24 months and no claim is payable, premiums are refunded. Accidental death and new conditions are covered, and so is terminal illness that is not related to a pre-existing condition. The window restarts on reinstatement and on an increase (the increase portion only, unless automatic).
Other insurers differ. Chubb Life, AA Life and Greenwich refund 100% of premiums on a non-accidental death in their early window, while NZ Seniors and OneChoice use a 12-month accident-only window and do not refund premiums for a death from another cause in it; OneChoice says "You can't get a refund on premiums after the cooling-off period" (insurers' own pages, retrieved 20 October 2026). Before you buy, put the early limit and the refund side by side; our page on funeral insurance waiting periods does this for funeral cover.
A refund is not a reason to treat these products as savings. The Quick Life wording says total premiums "might be more than the benefit paid out", and Funeral Insurance says total premiums could exceed the benefit and the benefit may not cover a whole funeral. IFSO has published a case of a funeral policy where the premiums exceeded the sum insured and the insurer refunded them all (IFSO); that was one complaint, not a rule.
When no refund is paid
- Surviving the term. Term-style life cover is protection only. Quick Life states that it "does not build up any cash or surrender value", and AIA's wording says the same for its policies.
- Cancelling after the free look. Momentum says it will not refund premiums already paid. That includes premiums paid annually in advance and cancelled part-way through the year.
- Missed payments. Momentum can cancel after a month unpaid. Paying later does not automatically reinstate Quick Life, and Funeral Insurance reinstatement is by application and "not guaranteed". Re-applying for Quick Life restarts the 2-year window. See missed life insurance premiums.
- Return-of-premium and cash-value products. If a document promises cash back, it is a different product; read its schedule. See return of premium life insurance.
How to ask for a refund, and what if it is refused
Call Momentum on 0800 108 108 or write to it; Quick Life says to use [email protected]. For a complaint, Momentum's wording sets out the steps: customer care first (acknowledged within 2 business days), then a complaints manager who aims to reply within 10 business days, then internal dispute resolution, which aims to give a formal response within 2 months. If it is not resolved you get a letter of deadlock and up to 3 months to go to the Insurance & Financial Services Ombudsman Scheme (IFSO), whose service is free for consumers. For an insurer other than Momentum, use its own disclosure documents to find its scheme. See also cancelling or changing life insurance.
Plan pages: Quick Life, Funeral Cover and the guaranteed acceptance hub. Our page on what drives life insurance premiums explains why premiums change. The buttons on this page open Momentum's own online application.
Who we are
General information, not advice. 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 and our disclosure. Momentum Life Limited's A.M. Best financial strength rating is B (Fair), affirmed 11 February 2026, and Momentum's own table puts B in its "Vulnerable" range (Momentum Life: Financial strength). A rating is an opinion, not a recommendation. Last reviewed 20 October 2026 against the sources below.
Frequently asked questions
Do you get your money back on life insurance if you don't claim?
No. Premiums pay for cover during the period you hold it, and there is no cash value on Momentum's plans. A refund applies only in the cases above.
Is there a 30-day cooling-off period for life insurance in NZ?
Momentum gives 30 days in both wordings. We found no statutory right, so check each insurer's documents; AIA's is 15 days from receiving the policy document.
If someone dies in the first 24 months of Funeral Insurance, who gets the refund?
The wording says refunds are made to the account associated with the policy. Ask Momentum how a refund is paid after the owner's death.
References
- Momentum Life: Funeral Insurance Policy Wording (17 August 2023), retrieved 17 October 2026
- Momentum Life: Quick Life Insurance Policy Wording (November 2025), retrieved 17 October 2026
- Momentum Life: Financial strength, retrieved 20 October 2026
- AIA Living umbrella policy wording v8, retrieved 20 October 2026
- AA Life: Funeral cover, retrieved 20 October 2026
- Chubb: Funeral cover, retrieved 20 October 2026
- NZ Seniors: Funeral insurance, retrieved 20 October 2026
- OneChoice: Funeral insurance, retrieved 20 October 2026
- Greenwich Life: The Funeral Plan, retrieved 20 October 2026
- IFSO: Funeral insurance case study, retrieved 20 October 2026
- Contracts of Insurance Act 2024, retrieved 20 October 2026
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