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

Life insurance with savings, profits or returns in NZ

Life and funeral insurance sold in New Zealand today is protection: it pays a benefit if an insured event happens and builds no savings, interest or investment return. Momentum's Quick Life wording calls itself "a protection policy only" with no cash or surrender value, and AIA's Living wording says its policy has no surrender or cash value and does not share in AIA's profits. Older whole of life and endowment policies did have a savings part. Insurers that held them now list them as closed.

In short

What kinds of policy people mean

People searching for "life insurance with returns" can mean several different things. They are not the same product.

What you mean What it is Status in NZ, from the sources we read
Term or stepped life cover Pays on death or terminal illness; nothing if you outlive it The standard product today
Cover with no expiry age Fidelity says its life cover has "no expiry age"; Chubb says its Life Cover never expires Still protection; check each wording for any cash value
Endowment Pays a savings value at a set date, or on earlier death Closed to new buyers at AIA and Resolution Life
Whole of life Lifelong cover, often with a savings or bonus element Closed at AIA and Resolution Life; see whole life insurance in NZ
Investment-linked or "bond" plans Insurance wrapper around a fund AIA lists several as closed to new investors
Return of premium A different design, covered on its own page See return of premium life insurance

What current wordings say

Momentum's Quick Life wording states: "Your policy is a protection policy only. It does not build up any cash or surrender value." (Momentum Life: Quick Life wording, November 2025). Its Funeral Insurance wording says total premiums could exceed the benefit and that the benefit may not cover a funeral, so it is not a savings plan either (Momentum Life: Funeral wording, 17 August 2023). The Insurance & Financial Services Ombudsman Scheme made the same point in a funeral case: "It is not a savings product" (IFSO).

AIA's Living umbrella wording, version 8, says the policy has no surrender value or cash value if cancelled and does not participate in AIA's profits (AIA wording). We read only these two insurers' wordings for this point. For any other policy, look for the words "cash value" or "surrender value" in its wording before assuming it has one.

One funeral feature can look like a payout while you are alive. NZ Seniors' policy documents (issue date 23 May 2021) describe an Early Cash Out of part of the benefit from age 85. That is a feature of that product, and it is not Momentum's; check the current wording. Greenwich Life's Funeral Plan says premiums stop once the total paid equals the benefit, which is a cap on premiums rather than a return.

What the older policies were, and what we could not find

AIA's list of closed products includes Endowment and Whole of Life, as well as plans such as Investor Plus and a unit-linked fund. It says closed products are no longer open to increases or lump-sum payments (AIA: Closed investment products). Resolution Life says its Whole of Life, Endowment and Pure Endowment policies "are no longer sold to new customers", describes them as providing "long-term, increasing life cover with a savings component", and publishes bonus information for policies from the former AMP Life and National Mutual Life Association (Resolution Life NZ). It also gives an interest rate of 6% per annum, effective 1 June 2026, on policy loans and premium arrears on these products.

We have not found a published source that dates when each insurer stopped selling these policies or explains why, so this page gives no history beyond what those insurers say. Sorted notes that "some older life insurance policies had a savings component attached to them that were paid out at a certain date", that these "may not have been the most cost-effective way to save", and that today it is regarded as simpler to keep life insurance and savings separate (Sorted).

Why protection and saving are usually kept apart

The trade-off is cost against flexibility. A protection-only policy has no cash value, so the premium buys cover and nothing else. Sorted says older savings-style policies may not have been the most cost-effective way to save. Keeping them apart also lets you change one without the other: you can stop saving without losing cover, or change cover when your needs change. Savings sit in a separate vehicle such as KiwiSaver or another investment, which has its own risks and fees and is a different kind of advice. The Financial Markets Authority also warns that a policy that costs less at first can cost more over time (FMA: Insurance). See life insurance cost by cover amount for how the sum insured affects cost, and why premiums increase.

If you hold an older savings-style policy

  1. Find out who holds it now. Insurers have changed hands; see who holds my old insurance policy.
  2. Ask for an illustration. Resolution Life says an adviser can usually provide one showing an estimated maturity value and how figures could change. Its customer line is 0800 808 267.
  3. Do not cancel it first. Cover you give up may be hard or costly to replace, and a new insurer looks at your current health. See can you cash out life insurance.
  4. Talk to a licensed adviser about whether to keep, change or stop it.

Where Momentum fits

Neither Quick Life nor Funeral Insurance is a savings or investment product (the Funeral wording says so in terms), and QuoteHub is a comparison and introduction service that does not issue policies. 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 accepts ages 18 to 65, $50,000 to $300,000, with no health questions and a first 2 years that exclude pre-existing conditions and suicide. Funeral Insurance accepts ages 40 to 75 and, in its first 24 months, pays only for accidental death; otherwise premiums are refunded. A healthy person can usually get more cover for less with fully underwritten cover through a licensed adviser, who can also explain how saving and cover fit together. Read Quick Life and what guaranteed acceptance means before you use the buttons on this page, which open Momentum's own application.

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

Does life insurance pay interest in New Zealand?

Current protection policies such as Quick Life and AIA Living build no cash value, so there is nothing to earn interest on. Old savings-style policies may carry bonuses or a maturity value, and loans against them can attract interest.

Is there whole of life insurance online in NZ?

AIA and Resolution Life list Whole of Life policies as closed. We did not verify every insurer, so ask a licensed adviser what is open today.

Can I get my premiums back at the end?

Not on Quick Life, Funeral Insurance or AIA Living. Premiums are refunded in narrow cases, such as the free look period, or for Funeral Insurance a non-accidental death in the first 24 months.

References

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