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

How much does life cover for a mortgage cost in NZ?

Life cover sized to a mortgage costs from roughly $30 to $40 for a 30-year-old non-smoking man with $500,000 of cover, to $50 to $70 for $1,000,000 (monthly cost in dollars, on stepped premiums), and the price climbs steeply with age. These are indicative monthly ranges from insurers' published rate cards as at 8 September 2026 (the QuoteHub Premium Index). Your own premium depends on underwriting. Momentum's Quick Life starts at up to $300,000, so a larger loan needs other cover.

In short

The ranges

Basis: indicative monthly cost from insurers' published rate cards as at 8 September 2026, stepped premiums, occupation class 1, standard rates with no loadings or exclusions. Each cell is one range across the insurers that priced the row (AIA, Asteron Life, Chubb Life, Fidelity Life and Partners Life priced these rows), rounded outward. We do not name the cheapest or dearest insurer. Your own premium depends on underwriting. For an insurer's own page, see Fidelity Life's life cover. The method page explains the rest.

Typical monthly cost, non-smokers

Age Man, $500,000 Woman, $500,000 Man, $1,000,000 Woman, $1,000,000
30 $30 to $40 $20 to $30 $50 to $70 $35 to $45
40 $40 to $50 $35 to $40 $70 to $80 $50 to $70
50 $90 to $120 $80 to $100 $170 to $200 $140 to $170
60 $300 to $375 $225 to $275 $550 to $650 $400 to $475

Typical monthly cost, smokers at 40: man $90 to $110 at $500,000 and $160 to $190 at $1,000,000; woman $60 to $80 at $500,000 and $110 to $140 at $1,000,000.

Reading the table: a loan between $500,000 and $1,000,000 will sit between the two columns, but we have not priced those amounts, so ask for a quote. A couple with a joint loan needs to think about whether each person is covered. See joint life insurance cost.

Why the price climbs over a long loan

These are stepped premiums, so they are re-set each year for age. Look down the man's $500,000 column: the same amount of cover costs $30 to $40 at 30 and $300 to $375 at 60. A 25 to 30 year home loan crosses that whole range. The Financial Markets Authority says a policy that is cheaper at first can cost more over time and that most premiums rise each year with age or inflation (FMA: Insurance). The price also rises sharply with smoking: the Index shows smoker ranges well above non-smoker ranges at each age in the table. See what drives life insurance premiums.

Stepped versus level

Insurers publish both structures. Fidelity says its Yearly Renewable Term rises each year with age, gender, smoker status and amount, while Level Term starts "a bit higher" and stays the same for the term (Fidelity Life). AIA offers Rate for Age or level for 10 years, to 65 or to 80, after which the premium converts to Rate for Age (AIA Living umbrella wording, version 8). Level is not fixed forever. In an IFSO case a policy that was "level to age 80" converted to Rate for Age at 80 and the monthly premium went from $49 to $190; the complaint was not upheld (IFSO). The Premium Index prices stepped premiums only, so it cannot show the level alternative; ask an adviser to price both. Our stepped versus level guide goes through it.

Why a large loan needs underwritten cover

Momentum's Quick Life accepts ages 18 to 65 without health questions. Cover is $50,000 to $300,000 per life insured. Its wording says "the maximum we'll pay for 1 person is $300,000 plus any automatic increases up to a total cap of $500,000", and the 3% yearly increase stops at 75 (Momentum Life: Quick Life wording, November 2025). So $300,000 is the entry maximum, not the cap, and even the cap falls short of many home loans. In its first 2 years pre-existing conditions and suicide are excluded, and premiums rise each year until 75. If your loan is above $300,000, cover that fully matches it generally means fully underwritten cover from an insurer through a licensed adviser, who can ask about stepped, level and other structures. See life insurance cost at $300,000 and the guaranteed acceptance guide.

Two further limits on how far a mortgage can be covered. Underwriting tests the amount against your finances: Fidelity's guide gives an income multiple of 20 times for ages 36 to 45 (see maximum life insurance cover). And the Index does not price an amount that falls as the loan falls; ask an adviser whether any insurer offers it.

Bank-sold cover versus independent cover

The major banks we checked distribute life cover that other insurers underwrite: ANZ names Chubb Life as its partner, ASB's insurance is underwritten and administered by AIA, BNZ says Partners Life provides and underwrites its life insurance, Kiwibank's life cover is by nib, and Westpac's LifeProtect is underwritten by Fidelity Life (ANZ, ASB, BNZ, Kiwibank, Fidelity Life: Westpac). Which route is cheaper for you depends on the quote. See bank life insurance versus a broker and do you need life insurance for a mortgage.

Life cover versus repayment cover

A mortgage can also be protected by monthly repayment cover. Fidelity describes it as paying towards a mortgage or rent if you are disabled, up to 115% of the monthly repayment, with a limit of $30,000 a month across insurers (Fidelity Life: Underwriting guide). It does not pay on death, and the Premium Index carries no price for it. Read mortgage repayment insurance and mortgage life insurance in NZ.

How to structure cover so the family can keep the home

  1. Start with the debt. List the mortgage balance and other debts in your name.
  2. Add a margin for living costs that the survivor would have, then subtract savings. The calculator on mortgage protection helps.
  3. Check what the table says for your age and the nearest priced amount.
  4. Decide stepped or level, knowing the long-term trade-off.
  5. Review when the loan changes. A top-up or refinance may call for more cover.

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. A healthy person can usually get more cover for less with fully underwritten cover through a licensed adviser. Quick Life suits someone who wants cover for part of a loan without health questions, within its limits and its first 2-year exclusion. The buttons on this page open Momentum's own application; read Quick Life first.

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

How much is mortgage life insurance per month?

For $500,000 of non-smoker cover, from about $20 to $40 at 30 to $90 to $120 for a man at 50 (monthly cost in dollars, on stepped premiums). See the table. Your own premium depends on underwriting.

Can Quick Life cover my whole mortgage?

Only a small one. It starts at up to $300,000 per person and can index to $500,000.

Is cover through the bank cheaper?

Not necessarily. Banks distribute policies underwritten by insurers. Compare quotes.

References

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