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

Return-of-premium and money-back life insurance in NZ

Return-of-premium life insurance pays back what you have paid if you outlive the policy. In the insurer documents we read, no current New Zealand life policy does this. The cover is pure protection: the premium pays for the risk and builds no cash value. What does exist are conditional refunds: a free-look refund, and a refund of premiums if you die early from a cause the policy does not cover. Neither is an investment return.

In short

Does return-of-premium life insurance exist in New Zealand?

A return-of-premium policy would charge more than ordinary term cover and give back some or all premiums if you outlive the term. The documents we read describe something different.

That is a sample, not a market survey, so we say "we did not find" rather than "none exists". The cleanest test is to ask the adviser: "Does any policy you can arrange pay back premiums if I outlive it, and what is the extra cost?"

What happened to savings-style life insurance?

Some older policies did combine cover and savings. Sorted notes that "some older life insurance policies had a savings component attached to them that were paid out at a certain date" (Sorted: Insuring ourselves).

Those still exist as a closed book. Resolution Life New Zealand says its Whole of Life, Endowment and Pure Endowment policies "are no longer sold to new customers". It describes them as long-term, increasing life cover with a savings component that accumulates value, lists 2026 bonus rate documents for policies that were formerly AMP Life and National Mutual Life Association, and says an adviser can usually provide illustrations of an estimated maturity value where applicable. Policy loans and premium arrears on these products attract interest, currently 6% a year, effective 1 June 2026 (Resolution Life NZ). Resolution Life's contact number on that page is 0800 808 267. If you hold one of these, our guide to who holds your old insurance policy explains where it sits. We have not found a reason, stated by the insurers, for why they stopped selling them, and we do not guess one.

If you want savings and protection, our page on life insurance with savings and returns covers the options, and term versus whole of life compares the structures.

When do modern NZ policies refund premiums?

These are conditional, and each depends on what happens and when.

Trigger What is refunded Source
Free look: you cancel soon after starting Premiums, if no claim has been made. AIA: return the policy within 15 days of receiving the document. Momentum Quick Life: 30 days from the policy start date. Momentum Funeral Insurance: 30 days from the acceptance date AIA wording; Momentum wordings
Momentum Funeral Insurance, non-accidental death in the first 24 months All premiums paid for that person; no benefit Funeral wording
Momentum Quick Life, death from a pre-existing condition in the first 24 months Premiums refunded if no claim is payable Quick Life wording
Chubb Life and AA Life funeral cover, other-cause death inside 24 months 100% of premiums, per each insurer's page Chubb; AA Life
Greenwich Life, The Funeral Plan, death by other cause in the first two years 100% of premiums, and premiums stop when the total paid equals the benefit Greenwich Life

Two cautions. First, a refund on an early death is not what the keyword suggests. It returns premiums to your family instead of paying the benefit, because the policy does not cover that cause yet. It is not a bonus for outliving the policy. Second, the refunds are narrow. Quick Life refunds premiums only for a pre-existing-condition death in the first 24 months with no claim payable, and the wording states no refund for suicide. If you die after the first 2 years, the benefit is paid and nothing is returned.

Momentum Funeral Insurance accepts New Zealanders aged 40 to 75, pays a fixed benefit of $3,000 to $30,000 towards costs, and in its first 24 months pays only for accidental death. Total premiums can end up larger than the benefit, and the benefit may not cover the whole funeral. Quick Life is for ages 18 to 65, with a 2-year exclusion for pre-existing conditions and suicide. Momentum Life's A.M. Best rating is B (Fair); see its financial strength page. Our Funeral Insurance comparison shows how the funeral products differ, and the Quick Life page sets out its limits. Our guaranteed acceptance hub explains how that kind of cover works.

What if you want your money back after 10 years?

Searches such as "life insurance that pays out after 10 years" usually mean one of two things.

If you want to know what you have paid, add it up. For example, say a policy cost $600 a year (a made-up figure, not a Momentum or other insurer's price): over 20 years the total paid is $12,000. A return-of-premium feature, if one were offered, would have to be paid for out of the premium, so you would pay more each year to get that amount back. We found none to price.

Other ways to combine protection with savings

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. Advice is provided by Craig Smith Business Services Limited, trading as Smiths Insurance & KiwiSaver, a licensed Financial Advice Provider (FSP712931).

Frequently asked questions

Is there a cooling-off period for life insurance in NZ?

We found no statutory right in the Contracts of Insurance Act 2024 text. Free-look periods are contractual: AIA allows 15 days from receiving the policy document, and Momentum 30 days. Check your own policy documents for the others.

Can you cash in a life insurance policy in NZ?

Not on a current term policy. AIA's wording says no surrender value, and Quick Life has no cash value. Legacy savings policies are different, so ask Resolution Life.

Do premiums come back if you outlive a funeral policy?

No. A funeral policy pays a fixed benefit on death, and IFSO calls it "not a savings product".

References

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