Paying insurance premiums by credit card in NZ
Yes, several New Zealand life insurers accept credit cards as well as direct debit. AIA, Chubb Life and Fidelity Life list cards among their payment methods, and Momentum Life takes cards for Quick Life and Funeral Insurance. Card payments can carry a fee: Momentum's Funeral Insurance wording says "an additional processing fee will apply for card payments" and gives no percentage. If a payment is declined and the premium stays unpaid, the insurer can cancel the cover, so act on any notice quickly.
In short
- Check the payment methods on your own policy. Direct debit is the default for many insurers; Fidelity calls it its "preferred method".
- Ask for any card fee in dollars before you choose a card. We found no insurer page that publishes the percentage, so we give none.
- Momentum can cancel a policy whose premium has been unpaid for more than a month, after written notice. AIA gives 30 days' grace and can cancel from the 31st day after the due date.
- Reinstating after a lapse is not automatic. Momentum's Quick Life reinstatement is at its discretion, and its 2-year restrictions apply again from reinstatement.
Can you pay NZ insurance premiums by credit card?
It depends on the insurer and the policy. These are the methods the insurers publish, read on 20 October 2026.
| Insurer | Payment methods published | Notes |
|---|---|---|
| Momentum Life, Quick Life | Fortnightly, monthly or annually, by direct debit or credit card | Momentum's Quick Life page lists both methods; the wording does not give a card fee |
| Momentum Life, Funeral Insurance | Fortnightly, monthly or annually | "An additional processing fee will apply for card payments"; no percentage is stated |
| AIA | Direct debit, credit or debit card | AIA umbrella wording v8 |
| Chubb Life | Direct debit, credit or debit card; weekly, fortnightly, monthly, half-yearly or annually | Minimum premium $20 a month including the policy fee |
| Fidelity Life | Direct debit (preferred), credit card, internet banking | Fortnightly to annually, though not every option suits every policy |
Sources: Momentum Quick Life, the Momentum Funeral Insurance wording, AIA, Chubb and Fidelity. Compared: Momentum Life, AIA, Chubb Life and Fidelity Life, on payment methods and lapse terms, as at 20 October 2026. Not every NZ insurer is included. This is one adviser's reading, not a score. Other insurers' pages were not checked, so confirm with yours.
How to pay by card: step by step
- Check the policy schedule or ask your insurer or adviser which methods your policy allows.
- Ask what the card costs. For Momentum's Funeral Insurance, a processing fee applies to card payments, and the wording does not give the amount. Ask for it in dollars per payment and compare it with direct debit.
- Set up the payment through the insurer's process. Momentum's Funeral Insurance lets the policy owner apply at any time to change the method and frequency.
- Put the renewal date in your calendar. A card that expires or is replaced after a lost card is one way a payment can fail.
- Keep your contact details current. Momentum says it will send written notice to the last address it holds before cancelling for non-payment, so a wrong address means you may not see it.
Credit card or direct debit?
| Credit card | Direct debit | |
|---|---|---|
| Fee | A processing fee may apply (Momentum Funeral Insurance wording) | None stated in the wordings we read |
| Failure risk | An expired, replaced or maxed-out card can decline | An empty account can decline |
| Other costs | Interest if you do not clear the balance | None |
| Rewards | Depends on your card issuer; we found no insurer source on points | Not applicable |
Whether you earn rewards, and whether they outweigh a fee or interest, is a matter between you and your card issuer. We have no figure to compare, so we do not claim that either method is cheaper. The FMA also notes that a card can carry separate "credit card repayment insurance", billed as a premium on the card and itemised on the statement, which is a different product from your life policy (FMA: Insurance).
What happens if a card payment is declined?
The policy's terms decide. These are the ones we read.
- Momentum Funeral Insurance: Momentum can cancel the policy if a premium remains unpaid for more than one month, after notifying you in writing at the last address it holds. If it cancels for non-payment you can apply to reinstate; outstanding premiums must be paid and reinstatement "is not guaranteed".
- Momentum Quick Life: it can cancel if premiums stay unpaid for over a month. Paying after cancellation "does not automatically reinstate" the policy. Reinstatement needs Momentum's approval, and the first 2 years' exclusions for pre-existing conditions and suicide apply from the date it is reinstated.
- AIA: a 30-day grace period for an unpaid premium, and AIA can cancel from the 31st day after the due date (AIA umbrella wording v8).
- Fidelity Life: says it will send a letter if you miss a premium and asks you to get in touch quickly; reinstatement depends on the policy type and how long since it lapsed, through your adviser or Fidelity.
Grace periods differ, so "30 days" is not a rule across insurers. Chubb's brochure does not state one, so check its policy documents.
Why a lapse matters
For Momentum's Funeral Insurance, the first 24 months pay only for accidental death, and any other death in that window pays no benefit and refunds premiums. Funeral Insurance accepts ages 40 to 75. Total premiums can end up larger than the benefit, and the benefit may not cover the whole funeral. A policy that lapses and is later replaced starts new restrictions, and for Quick Life, which accepts ages 18 to 65, a re-application restarts the 2-year exclusions: "your two year standdown period will recommence" (Quick Life wording). Quick Life never pays for deaths from alcohol or drug effects, war, terrorism, criminal activity, or a dangerous job or pastime listed in the wording.
How to update payment details safely
Contact your insurer or adviser using the phone number or portal on your policy documents, not a link in an unexpected message. Momentum's customer support number is 0800 111 679 (Momentum). Never share a full card number in an email. If you are using a premium holiday to pause payments, the FMA says to check whether you will owe the missed amounts later and whether you remain covered during the pause.
What if a missed payment notice arrives?
Pay the outstanding premium straight away if the policy allows it, then ask the insurer in writing whether the cover continued. Do not assume that paying late reinstates cover: Momentum says it does not do so automatically. If you cannot pay, ask about a different payment frequency before cancelling. See cancelling or changing life insurance, and read how funeral insurance works and the Momentum funeral cover page. If you buy through an adviser, see how insurance advisers get paid.
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 how we are paid. Momentum Life Limited's A.M. Best rating is B (Fair), affirmed 11 February 2026, a range Momentum's own table labels "Vulnerable"; see its financial strength page. The buttons on this page open Momentum's application only; see the Quick Life page for the plan details.
Frequently asked questions
Can I pay Momentum Life by credit card?
Yes for both products. Funeral Insurance carries a card processing fee with no percentage in the wording; ask Momentum for the amount.
Is there a surcharge for paying insurance by card?
Some policies state one. We found no source for a general New Zealand rule on surcharges, so we do not give one.
What if my card expires?
Update it before the next due date. If a premium goes unpaid, Momentum can cancel after more than a month; AIA can cancel from the 31st day after the due date.
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: Quick Life, retrieved 20 October 2026
- Momentum Life: Claims and contacts, retrieved 20 October 2026
- Momentum Life: Financial strength, retrieved 20 October 2026
- AIA New Zealand: Living umbrella policy wording v8, retrieved 20 October 2026
- Chubb: Assurance Extra Life and Life Income Cover brochure, retrieved 20 October 2026
- Fidelity Life: FAQs, retrieved 20 October 2026
- FMA: Insurance, retrieved 20 October 2026
Read the full insurance guides
Compare your cover with a licensed NZ adviser · free, no obligation.
Explore related pages: Life Insurance, Income Protection, Health Insurance, Trauma Insurance, Free Will.