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

Term versus whole life insurance for seniors

Term life insurance pays if you die while the policy is in force, and most current New Zealand term policies have no expiry age. Whole-of-life cover is designed to last your lifetime, and AIA still sells one, but it takes applicants only to 70. For seniors the real choice is often among term, whole-of-life and a small funeral benefit.

In short

A term policy pays a lump sum if the person dies while it is in force. A whole-of-life policy is designed to pay out whenever death occurs, so the only question is when. That sounds like a certain payout, but it is a different trade-off from term, not an automatic upgrade, and the insurer decides who it will accept. This page compares the three kinds of cover a New Zealand senior can actually look at, on the points that matter at 65, 70, 75 and 80: who accepts you, how the premium behaves, how long cover lasts and what it pays. It does not rank them. We have not found a published premium for AIA's whole-of-life product, so the comparison is on structure, not price.

Compared: AIA Living Life Cover and Cover for Life, Fidelity Life life cover, Chubb Life Assurance Extra Life Cover, NZ Seniors Life, Golden Insurance, Momentum Life Funeral Insurance and Quick Life, and the funeral cover from AA Life, Chubb Life and NZ Seniors, on entry age, premium shape, expiry and payout, as at 20 October 2026, from the insurers' own pages and wordings. Not every New Zealand insurer is included. This is a description of published terms, not a ranking.

What is the difference between term and whole-of-life cover?

AIA puts it this way on its own page: whole-of-life insurance (such as Cover for Life) is designed to last for your lifetime and not expire, to provide a lump sum on death, while term life is often used for temporary needs like paying off a mortgage or supporting children and only pays out if death occurs during the term (AIA New Zealand). AIA adds that its own Life Cover does not expire, but most people buy it for a set period. In New Zealand, "term" on a life policy usually describes how the premium is set rather than a date cover ends; see term life insurance in retirement and what "term to age 90" means.

Term life Whole-of-life Funeral cover
Example in NZ Fidelity Life; AIA Life Cover; Chubb Assurance Extra AIA Cover for Life Momentum, AA Life, Chubb Life, NZ Seniors, OneChoice
Published entry age 16 to 75 (Fidelity); 10 to 70 (AIA, Chubb) 16 to 70 (AIA) 40 to 75 (Momentum); to 79 or 80 (others)
Cover ends "No expiry age" (Fidelity), "No Expiry" (AIA), never (Chubb) "No Expiry" (AIA) Not stated as an expiry; premiums stop at 85, 89 or 90 by product
Premium shape Stepped, or level for a period "Level premiums for a fixed premium payment term after which your premiums stop but your cover continues" (AIA) Level until a stop age
Cover amount Unlimited at AIA; no stated maximum at Chubb Unlimited at AIA $3,000 to $30,000
Health assessment Yes Yes No health questions
Early window Usual underwriting terms Check wording 12 to 24 months, accident only
Pays on Death; terminal illness Lump sum on death Death from any cause after the window

Sources are in the References. Entry ages are the insurers' published limits, not offers of cover.

Is whole-of-life insurance still sold in New Zealand?

Yes, in a narrow form. AIA's product page lists Cover for Life with an eligible age of 16 to 70, an unlimited cover amount and no expiry, and says it provides "lifetime cover with fixed premiums for a chosen term" (AIA New Zealand). AIA says it is "not designed to be a replacement for standard Life Cover" and is a way to leave a legacy or support end-of-life costs. We could not find a published price, and we did not find a cash or surrender value stated on the product page, so check the policy wording before treating it as anything other than insurance.

Older whole-of-life, endowment and pure endowment policies sold decades ago by AMP and National Mutual are administered by Resolution Life NZ and are "no longer sold to new customers" (Resolution Life NZ; see also our term versus whole-of-life guide). If you already hold one, ask the administrator what you would give up before cashing it in or replacing it. For the background on why the old policies faded, see our whole life insurance guide.

What can a senior actually buy at 65, 70, 75 and 80?

Your age Open on the products we read Not open
65 Fidelity Life, AIA and Chubb life cover (underwritten); AIA Cover for Life; Momentum Quick Life (no health questions, 18 to 65); Momentum Funeral Insurance Nothing by age alone
70 The same underwritten products at their upper limit; Momentum Funeral Insurance; NZ Seniors Life (45 to 79) Quick Life
75 Fidelity Life (to 75); Momentum Funeral Insurance (to 75); NZ Seniors Life; Golden Insurance; AA Life, Chubb Life, NZ Seniors and OneChoice funeral cover AIA and Chubb life cover; AIA Cover for Life; Quick Life
80 Chubb Life funeral cover (50 to 80); Golden Insurance (40 to 80) Momentum Life and most others

Underwritten products still decide each case on your health. A guaranteed acceptance product asks no health questions but restricts the early period. NZ Seniors Life asks eight health questions by phone, covers to 85 and sets amounts of $10,000 to $200,000, and Golden Insurance asks health and lifestyle questions and may apply a waiting period, so neither is a "no questions" cover. Our guide to life insurance over 75 has the age-by-age detail.

How do premiums behave, and what does it cost?

Stepped term premiums rise every year with age, and the FMA says most premiums rise annually with age or inflation (FMA: Insurance). On insurers' rate cards as at 8 September 2026, a stepped $500,000 policy for a non-smoking man runs about $625 to $725 a month at 65 (indicative, standard rates, class 1, from the QuoteHub Premium Index; your own premium depends on underwriting). The Index stops at 65, so we publish no range beyond that. Independent sites show funeral insurance prices roughly doubling between 50 and 70 (Moneyhub). AIA's Cover for Life is level, so its premium does not rise with age, but a level premium starts higher than a stepped one; ask for a quote to see both.

Funeral cover as the lifetime-style option

Of the three kinds of cover, funeral insurance is the one that comes closest to lifetime cover without health questions. Momentum Life's Funeral Insurance accepts New Zealanders aged 40 to 75 with no medicals, health questions or paperwork, and pays a benefit of $3,000 to $30,000. An accidental death within 90 days of the accident pays three times the benefit, at any time. The premium is fixed each year until the 89th birthday, then stops, and cover continues for life. The catch is the opening window: for the first 24 months, only an accidental death is paid, and any other death returns the premiums for that person and nothing more. There is no terminal illness benefit. Total premiums can end up larger than the benefit, and the benefit may not cover the cost of a whole funeral, so it is a way to pay for a small expense, not a savings or investment plan. Our funeral insurance break-even calculator shows when that happens for your numbers.

A.M. Best rates Momentum Life Limited B (Fair), affirmed on 11 February 2026; Momentum's own table puts that grade in its "vulnerable" group, and the detail is on Momentum's financial strength page. Quick Life, Momentum's guaranteed acceptance life cover of $50,000 to $300,000, is open only to 65, and for its first 2 years excludes pre-existing conditions and suicide. Someone in good health can often get more cover for less from fully underwritten term cover arranged through an adviser, if the insurer accepts them.

When does each one make sense?

Where QuoteHub fits

General information, not advice. Advice is provided by Craig Smith Business Services Limited, trading as Smiths Insurance & KiwiSaver, a licensed Financial Advice Provider (FSP712931). QuoteHub is a Momentum Life partner. Smiths Insurance & KiwiSaver may receive a commission if you buy through our link; see our disclosure and how we are paid. Momentum's online quote is available through the buttons on this page, and the age limits above apply. The whole-of-life product described above is AIA's, not Momentum's, and Momentum's life cover, Quick Life, is open only to 65, so for either a licensed adviser can ask the insurers that sell them. Browse our funeral insurance hub and guaranteed acceptance hub, and see Momentum Life's Funeral Cover. This page was drafted by the QuoteHub Editorial Team with AI assistance, from the sources listed below, and reviewed by the QuoteHub Adviser Team.

Frequently asked questions

Is whole life insurance worth it for seniors?

Only for a narrow need, and only if you can still be accepted: AIA's Cover for Life takes applicants to 70. It is insurance, not an investment, and the premiums paid reduce what you could otherwise leave. Compare the total premiums with the benefit.

Is term life insurance worth it for seniors?

If someone relies on your income or a debt would fall on your estate, yes, for as long as the need lasts. If neither applies, often not.

Can a 75-year-old get term life insurance in New Zealand?

Fidelity Life publishes an entry age of 16 to 75 and NZ Seniors Life 45 to 79, both with health assessment. Acceptance is the insurer's decision.

Does whole life insurance have a cash value in New Zealand?

We did not find a cash or surrender value described on AIA's Cover for Life page. Older Resolution Life policies carry bonuses. Check the wording of any policy.

References

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