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

How to switch life insurance providers carefully

In New Zealand, switching life insurance means applying for a new policy with a new insurer, not moving your old policy across. Keep the old policy running until the new insurer has accepted you in writing and the new cover has started. The Financial Markets Authority (FMA) warns that a replacement policy can bring new qualifying periods, new pre-existing condition exclusions and different premiums, so read the new offer before you cancel anything.

In short

What "switching" actually means

A life insurance policy is a contract with one insurer. Changing insurer means asking a second insurer to offer you cover on its own terms, then ending the first contract. That is why the questions "can I transfer my life insurance to another company" and "can you switch life insurance companies" have the same practical answer: you can change, but you start a new contract.

Do not confuse this with a transfer of ownership. AIA's wording has a section on transfer of ownership, which changes who owns the same policy with the same insurer. Momentum's Quick Life wording also allows ownership to be passed to someone at least 16. Neither moves your cover to a different company.

The key rule: the old policy stays until the new one is in force

Cancelling first leaves a gap, and the gap can be permanent. If your health changes while the new application is being assessed, the new insurer may load the price, add exclusions, postpone or decline, and you will have given up the cover you had. Nothing in the sources we read gives a statutory right to undo a cancellation, and reinstating a lapsed policy is by application. Momentum's Quick Life wording says paying a premium after cancellation "does not automatically reinstate" the policy, and its Funeral wording says reinstatement is "not guaranteed".

A checklist for replacing existing life cover

  1. Get your current documents. Find the policy schedule and wording. Note the sum insured, who owns the policy, whether premiums are stepped or level, any loading or exclusion on the schedule, and any extra benefits attached.
  2. Write down why you want to switch. Price, wording, service and a changed need are different reasons, and some have a cheaper answer (see the next section).
  3. Ask your current insurer first. Fidelity, for example, lets a policyholder who has stopped smoking for more than 12 months send a non-smoker declaration for a possible reduced premium (Fidelity Life: FAQ). Momentum's Quick Life asks for 24 consecutive months.
  4. Apply for the new cover and answer every question. Include conditions you think are minor. Disclosure is covered below.
  5. Wait for the written offer and read it. A quote is not an offer. The offer may carry a loading or an exclusion that the quote did not.
  6. Check the start date and the first premium. Make sure cover has started, not only that the application was received.
  7. Only then cancel the old policy, in writing. AIA's wording, for instance, lets the policy owner cancel at any time in writing and says the policy has no surrender value or cash value if it is cancelled, so cancelling does not return a cash sum.
  8. Keep both sets of papers. You may need them for a claim or a complaint.

Replacement risk matrix

What changes What can happen What the sources say
Health disclosure The new insurer assesses you at today's age and health, not the health you had when the old policy began IFSO: the new insurer sees your full history
Pre-existing exclusions and waiting periods A new policy can start new qualifying periods and exclusions FMA warns to watch for both
Suicide clause The period can start again on the new policy Fidelity's LifeProtect wording and Chubb's Life & Living terms use 13 months; Quick Life uses 24 months. We did not confirm AIA, Asteron or Partners Life
Premium structure Stepped premiums rise each year; level premiums start higher Fidelity, Asteron, AIA and Chubb all describe both
Wording Definitions and benefits differ between insurers and between old and new versions of a product Read both wordings side by side
Adviser pay Commission can follow a new policy, and some insurers claw it back if you cancel within about two years FMA: advisers must tell you how they are paid

The suicide clause is a good example

Every insurer sets its own early-death rules, so a switch can restart one. Fidelity's LifeProtect Life Cover wording (the version sold through Westpac) excludes death by one's own hand within 13 months of the start date, reinstatement or an increase. Chubb Life's Life & Living terms say the same for intentional self-harm within the first 13 months (Chubb Life). Momentum's Quick Life excludes suicide and intentional self-harm for the first 2 years.

Fidelity's LifeProtect wording also has a replacement carve-out: the 13-month exclusion does not apply if the new cover replaced similar cover with another insurer, up to the sum insured under the replaced cover, provided the previous cover had been in force for at least 13 months before the start date and you supply proof of the old policy and its cancellation at the time of claim (Fidelity Life: LifeProtect Life Cover wording). That is one insurer's wording, and an adviser-sold policy may read differently, so ask each insurer in writing whether it recognises replaced cover.

Disclosure: the part people get wrong

Under current law you must disclose all material information, and the insurer tests that with independent underwriters. In one IFSO case an insurer applied 50% loadings retrospectively and paid a reduced stroke claim; the complaint was not upheld (IFSO: non-disclosure case). In another, a claim was settled at half the life benefit after an old anaemia diagnosis was left out (IFSO: colon cancer case).

A new application hands the insurer a fresh chance to find something. Under the Contracts of Insurance Act 2024, from 15 November 2027 (not yet in force), the test changes to taking reasonable care not to make a misrepresentation, with remedies that depend on what the insurer would have done. Until then, the careful course is to disclose everything.

Stepped or level, before you move

A policy that looks cheaper at first can cost more later. The FMA says most premiums rise annually with age or inflation. Fidelity's Yearly Renewable Term rises each year, while its Level Term starts "a bit higher" and stays the same for the term (Fidelity Life). Compare a level quote with a stepped quote only over the same period. Our guide to stepped versus level premiums explains the difference, and IFSO's published case of a policy that converted from level to rate-for-age at 80 shows what a conversion point can do: the monthly premium went from $49 to $190 (IFSO).

Is Quick Life a way to switch?

Momentum Life's Quick Life accepts New Zealanders aged 18 to 65, asks no health questions, and covers $50,000 to $300,000 per person, with 3% yearly increases up to a $500,000 cap. It is not a like-for-like replacement for underwritten cover. In the first 2 years, pre-existing conditions and suicide are excluded, and cancelling and rejoining restarts that 2-year period. A pre-existing condition includes anything treated or noticed in the 2 years before the policy starts, and examples named in the wording include a BMI over 40, cholesterol over 7.0 and complications of diabetes. Quick Life can suit someone who cannot get cover elsewhere, but if you are giving up an underwritten policy, you are swapping terms that were already assessed for a policy with a 2-year restriction.

Momentum Life's A.M. Best financial strength rating is B (Fair), a rating A.M. Best groups in its "Vulnerable" range; see Momentum's financial strength page. The rating is an opinion, not a recommendation. Read the Quick Life page and the guaranteed acceptance hub for the full terms, and use the buttons on this page only if guaranteed acceptance is what you want.

Cooling-off is contractual, not statutory

We found no statutory cooling-off or free-look period for life insurance in the Contracts of Insurance Act text we read. The periods that exist are written into each policy. AIA's wording allows a refund if the policy is returned within 15 days of receiving the policy document, when no benefit has been paid and no claim made. Momentum's Quick Life gives 30 days from the policy start date, with a full refund if no claim has been made. For Fidelity, Chubb, Asteron and Partners Life we did not find a period in a public document, so check your policy documents. A free-look period on the new policy does not bring the old one back.

Make sure the reason is a good one

Switching can make sense when your needs have changed, your old policy lacks a benefit you need, or an adviser has compared wordings and found a clear difference. It is a poor idea when the only reason is a lower headline quote. Price differences often come from different definitions, a different premium structure or a different assumption about your health. For a wider look at cancelling or reducing cover instead, read how to cancel or change your life insurance. To learn what an insurer may ask for, read our guide to the medical exam and blood tests, and for quote-by-quote comparisons see how to compare insurance quotes.

Who we are and how we are paid

Compared on this page: Fidelity Life, Chubb Life, AIA and Momentum Life (Quick Life), on switching-relevant terms, as at 20 October 2026, from their published documents. Not every New Zealand insurer is included, and we did not read Asteron's or Partners Life's wording. This is one adviser team'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. Smiths Insurance & KiwiSaver may receive a commission if you buy through our link; see how we are paid and our disclosure. The FMA says most insurance advisers receive commission from the insurer, built into the premium, and that upfront commission can be as high as 200% of the annual premium including bonuses, according to its 2016 review (FMA: Insurance advice). So ask any adviser who suggests a switch how they are paid and what you lose by moving.

If a Momentum policy goes wrong, complain to Momentum first (0800 108 108), then to the Insurance & Financial Services Ombudsman Scheme (IFSO), which is free. For a complaint about QuoteHub's own service, see the disclosure page.

Frequently asked questions

Can I transfer my life insurance to another company?

Not in the sense of moving the same policy. We found no insurer process that carries one company's policy and terms to another. You apply for a new policy, and your old one ends only when you cancel it.

Can you switch life insurance companies without a medical?

It depends on the product and the amount. Fidelity and Chubb need only an application form or personal statement up to $500,000 at every age band in their published guides, but disclosed conditions can trigger more. Momentum's Quick Life asks no health questions and excludes pre-existing conditions for 2 years.

Does switching restart waiting periods?

It can. The FMA warns that a replacement policy can bring new qualifying periods and pre-existing exclusions. Check each period in the new wording, and ask whether the insurer recognises your old cover.

Should I cancel before the new policy starts?

No. Keep the old policy running until the new one is accepted in writing and in force.

References

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