Waiver of premium benefits on NZ life insurance
A waiver of premium is an optional feature under which the insurer pays, or stops charging, your premiums while illness or injury keeps you from working. In New Zealand it is found on some adviser-arranged life covers. Asteron, for example, lists a "We pay your premiums" benefit. Momentum Life's Quick Life and Funeral Insurance do not have one.
In short
- A waiver of premium pays the cost of keeping the cover going. It does not replace your income; income protection does that.
- It is an add-on, not a standard part of life cover. The one definition we could source is Asteron's: it pays your life premiums if you are ill or injured and "can't work in your usual job for more than 10 hours a week".
- We could not source waiting periods, durations or prices for any insurer, so this page gives none. They are in the policy document.
- Momentum's Quick Life and Funeral Insurance wordings contain no waiver. In Quick Life the first 2 years also exclude pre-existing conditions and suicide, and Funeral Insurance pays only for accidental death in its first 24 months.
What is a waiver of premium?
A waiver of premium is a policy feature that relieves you of paying premiums for a defined period while you meet a disability test, with the cover itself staying in place. The reason it exists is simple: if a long illness or injury cuts your income, the premium is still due, and unpaid premiums can end the policy. Asteron describes the feature in its Life Cover brochure: "We'll pay your life insurance premiums if you're ill or injured, and can't work in your usual job for more than 10 hours a week" (Asteron Life: Life Cover brochure). Asteron's website lists the same optional benefit as "We pay your premiums" under its life insurance (Asteron Life). Neither page states the waiting period or defines the disability terms further; that is in the policy document, which we have not read.
What each insurer's documents show
| Insurer or product | What we found | Source |
|---|---|---|
| Asteron Life, Life Cover | Optional "We pay your premiums" benefit: ill or injured, unable to work in your usual job for more than 10 hours a week | Asteron brochure and website |
| Fidelity Life, life cover | No waiver benefit in the LifeProtect Life Cover wording we read; the web page offers a payment break that suspends cover | Fidelity wording and web page |
| AIA, Living umbrella wording v8 | No waiver term found in the text we read | AIA wording |
| Chubb Life, Life Cover and Life Income Cover | No waiver in the brochure's built-in or optional benefits | Chubb brochure CIG0009 V6 |
| Chubb Life, Funeral Cover | A Long-Term Care Premium Waiver: premiums stop on entering long-term care | Chubb funeral page |
| Momentum, Quick Life and Funeral Insurance | None in either wording | Policy wordings |
"Not found" here means we did not see it in the documents we read, not that no such feature exists. Insurers change their ranges, so ask for the current policy document. A payment break is a different thing: Fidelity's page describes it as a way to "suspend your cover" if you are made redundant, go overseas or study, which is not the same as the insurer paying the premium (Fidelity Life).
We cannot give a comparison of "own occupation" and "any occupation" definitions across insurers, because only Asteron's wording was available to us. That is the question to ask, though. A test tied to your usual job and a test tied to any work are different tests, so read which one a policy uses.
What to check before adding one
- The trigger. What counts as being unable to work, and in which job? Asteron's brochure uses your usual job and a 10-hour weekly limit.
- The waiting period. How long must you be unable to work before premiums stop being charged? The brochure does not say.
- How long it lasts. Until you recover, for a fixed number of months, or to a certain age?
- What it covers. Life cover only, or also trauma and disability cover on the same policy?
- What happens to your cover and indexation while premiums are waived.
- The price. An add-on is charged for. Ask for quotes with and without it.
Our page on questions to ask about life insurance has a longer list.
Is it worth the cost?
It depends on the size of your premium and on what else you have. A waiver protects the premium bill, so its value grows with the premium. Stepped premiums rise each year with age, so the amount being protected rises too; see what drives life insurance premiums. It does not pay you anything while you are off work. If the worry is paying the household bills, income protection is the product designed for that; see do I need income protection and income protection waiting and benefit periods. QuoteHub's life insurance quotes show ranges for cover with no add-ons, and we publish no price for a waiver.
Guaranteed acceptance and waiver of premium
Momentum's guaranteed acceptance plans do not include a waiver of premium. This follows from the wordings: Quick Life covers death and terminal illness, and Funeral Insurance pays a fixed benefit, with no benefit for disability. What both wordings do say about missed payments is this:
- Momentum can cancel Quick Life if premiums stay unpaid for over a month, and paying after cancellation does not automatically reinstate it. Reinstatement is subject to approval.
- If you cancel and re-apply for Quick Life, the 2-year standdown period starts again and premiums already paid are not refunded.
- Funeral Insurance can be cancelled by Momentum when premiums are unpaid for more than a month; reinstatement is by application and "not guaranteed". If it is reinstated or you increase cover, check whether a new 24-month window applies. Total premiums can exceed the benefit, and the benefit may not cover a whole funeral.
If you may struggle to keep paying, it is worth knowing that before you buy. Read missed life insurance premiums. Asteron's waiver is on adviser-arranged cover, and an adviser can tell you which underwritten insurers offer one; see guaranteed acceptance versus full medical underwriting. Plan pages are Quick Life and Funeral Cover. 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
What does waiver of premium mean on life insurance?
The insurer pays or stops charging premiums while you meet a disability test, so your cover continues. It is an optional add-on on the policies that offer it.
How long is the waiting period before premiums are waived?
It depends on the insurer and the policy. We could not source a waiting period for any insurer, so check the policy document.
Does Momentum Quick Life have a waiver of premium?
No. Neither Quick Life nor Momentum's Funeral Insurance wording contains one.
References
- Asteron Life: Life Cover brochure, retrieved 20 October 2026
- Asteron Life: Life insurance, retrieved 20 October 2026
- Fidelity Life: LifeProtect Life Cover policy wording, retrieved 20 October 2026
- Fidelity Life: Life cover, retrieved 20 October 2026
- AIA Living umbrella policy wording v8, retrieved 20 October 2026
- Chubb Life: Life Cover and Life Income Cover brochure CIG0009 V6, retrieved 20 October 2026
- Chubb: Funeral cover, retrieved 20 October 2026
- Momentum Life: Quick Life Insurance Policy Wording (November 2025), retrieved 17 October 2026
- Momentum Life: Funeral Insurance Policy Wording (17 August 2023), retrieved 17 October 2026
- Momentum Life: Financial strength, retrieved 20 October 2026
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