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

Life insurance with rewards, gifts and discounts in NZ

Life insurance with rewards in New Zealand means one of two things: a wellness programme that is added to a policy for a fee, or a time-limited promotion such as a gift card or discount. The programme we could verify is AIA Vitality, which AIA's website says costs $13.50 a month to add (GST included), starts with an initial 10% premium discount and pays rewards for activity. The "free" Apple Watch is a 24-month interest-free loan, not a gift, and AIA says new applications are paused.

In short

What rewards exist, and which we could verify

Scope: this page looks at AIA Vitality, from AIA's own pages read on 20 October 2026, and at promotional gifts in general. It does not cover every insurer, and we did not find a standing gift-card offer on the AIA pages we read. Insurers and advisers run promotions that come and go, so a gift you see advertised today may not be there next month.

Type Example What the source says
Wellness programme AIA Vitality Added to eligible AIA life, trauma, disability, income protection or health cover for $13.50 a month including GST (AIA)
Premium discount AIA Vitality "Premium Flex" An initial 10% discount on eligible premiums, then adjusted each year by status; rules apply
Activity rewards AIA Vitality Active Rewards Up to $260 a year in $5 weekly vouchers for reaching activity targets
Device offer AIA Vitality Apple Watch Benefit A 24-month interest-free loan from Glow; paused for new loan applications as at 20 October 2026
One-off gift Gift cards, cashback Time-limited promotions; terms vary and sit outside the policy wording

AIA Vitality, step by step

AIA says Vitality is added to an eligible policy for $13.50 a month, GST included, and that the fee rose from $11.50 on 2 July 2026 for retail memberships (AIA: AIA Vitality; AIA: Premium Flex, which carries the $11.50 to $13.50 notice). Members earn points, move through Bronze, Silver, Gold and Platinum, and get partner rewards. AIA's Premium Flex page says you get an initial 10% premium discount in the first year, and after that the discount changes each year with your status on the policy anniversary: its example starts from a 10% discount and gives 8% in year 2 if you stay at Bronze, 9% at Silver, 10% at Gold and 12% at Platinum, within a range of 0% to 20% (AIA: Premium Flex). AIA says rules apply, and that AIA Cover for Life and AIA Essentials Life Cover are not eligible for the premium discount.

Two points follow. The discount is a percentage of your premium, so it is small on a cheap policy. The fee is a flat dollar amount that applies whatever your premium is. For the programme as a whole, see the AIA Vitality page.

The Apple Watch offer is a loan

AIA's Apple Watch page says members can activate the benefit once every 24 months, apply to Glow for a 24-month interest-free loan for a $749 Apple Watch Series 11, pay a $125 deposit, then receive an Apple Store gift card code. Each month's repayment is $26. If you earn four or more weekly rewards in a month, AIA covers the full $26; if you earn three, two, one or no weekly rewards in the month you pay $11, $16, $21 or the full $26 (AIA: Apple Watch Benefit). The arithmetic matches: $125 plus 24 payments of $26 is $749. You remain responsible for the loan, and the page says Glow has temporarily paused accepting new loan applications, so the benefit was paused when we read it.

So "life insurance with a free Apple Watch" is, on AIA's own terms, an activity programme with a loan. It is not free if you miss targets, it needs AIA's monthly Vitality fee, and it was not available to new applicants on 20 October 2026.

A worked test for a sign-up gift

Take two policies with the same cover, insurer financial strength and exclusions, which you have checked. Policy A has a $300 sign-up gift card and a higher premium. Policy B has no gift. The question is how much more A costs over five years. These dollar amounts are made up, to show the method.

Policy A costs more each month by Extra cost over 60 months Gift card Net result for A
$3 $180 $300 $120 ahead
$5 $300 $300 Even
$7 $420 $300 $120 behind

On stepped premiums the gap can widen with age, so a monthly gap that looks small now can be larger later. Use the real premiums, over the real cover, from a rate card. Then add what the gift card is worth to you: a card for a shop you do not use is worth less than its face value.

A worked test for a wellness fee

AIA does not publish a single premium for Vitality members, so this too uses made-up numbers. Say an eligible policy cost $720 a year before any discount. A 10% initial discount is $72. AIA's fee of $13.50 a month (AIA: AIA Vitality) comes to $162 a year. In the first year you would pay $90 a year more than without Vitality. If you earned the full $260 of Active Rewards that AIA says is the most available in a membership year, you would be about $170 ahead; if you earned half, about $40 ahead; if none, $90 behind. Later years depend on your status, because the discount can move down to zero. Whether the rewards are worth having to you is personal: they pay for activity you would have to actually do.

What matters more than the perk

Regulators have pointed out where incentives can distort a decision. The FMA wrote to insurers in June 2025 that incentives "must not be to the detriment of the customer", and the FMA's insurance advice page says some adviser incentives are "soft" commissions such as tickets and small gifts (FMA letter to insurers; FMA: Insurance advice). The FMA also says a cheaper policy at first can cost more over time and that most premiums rise each year with age or inflation (FMA: Insurance). Before you let a reward tip a decision, check:

  1. Cover. The sum insured, what it pays on and what it excludes. See questions to ask about life insurance.
  2. Premium shape. Stepped or level, and how it changes. See what drives life insurance premiums.
  3. Who is paid. Banks and advisers can be paid commission; see bank life insurance versus a broker.
  4. Conditions on the reward. Is it a one-off, a yearly discount or a loan? Is there a clawback if you cancel? Get the terms in writing.

Guaranteed acceptance versus rewards

Rewards are attached to underwritten products where health and lifestyle are assessed. Momentum's Quick Life takes a different path: no health questions, a first 2 years that exclude pre-existing conditions and suicide, and stepped premiums. Neither Momentum wording we hold includes a reward programme. If a promotion is offered with a Momentum product, check its written terms, since it is not part of the policy wording. See guaranteed acceptance for how those products work.

Where Momentum fits

Momentum Life Limited has an A.M. Best financial strength rating of B (Fair), in A.M. Best's "Vulnerable" range on Momentum's own scale; see its financial strength page. Quick Life is open to ages 18 to 65 for $50,000 to $300,000, with a 2-year exclusion for pre-existing conditions and suicide. A healthy person can usually get more cover for less through fully underwritten cover from an adviser. The buttons on this page open Momentum's own application; read Quick Life first.

If you have a complaint about a Momentum policy, go to Momentum Life first and then to IFSO. For any other insurer, the dispute scheme is named in its policy documents.

Compared: AIA Vitality, on fee, discount and reward terms, as at 20 October 2026, from AIA's published pages. Not every NZ insurer or promotion is included. This is one adviser's reading, not a score. Financial advice is provided by Craig Smith Business Services Limited, trading as Smiths Insurance & KiwiSaver, a licensed Financial Advice Provider (FSP712931). This page is general information, not advice. QuoteHub is a Momentum Life partner, and Smiths Insurance & KiwiSaver may receive a commission if you buy through our link; see our disclosure and how we are paid. Written by the QuoteHub Editorial Team from the sources below; last reviewed 20 October 2026.

Frequently asked questions

Is there life insurance with a free Apple Watch in NZ?

AIA's Apple Watch Benefit is not free. It is a 24-month interest-free loan, with a $125 deposit, partly repaid by AIA if you meet weekly targets. AIA's page said it was paused on 20 October 2026.

Can I get a gift card for taking out life insurance?

Some insurers or advisers run promotions. They are time-limited and set by the provider, so check the written terms and compare the premium without the gift.

Does a premium discount make a policy cheaper overall?

Not always. AIA's Vitality discount is a percentage that can fall each year, and the monthly fee is a flat amount. Work out the net yourself.

References

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