Term vs Whole of Life Insurance NZ: What Still Exists in 2026
Whole of life insurance, once common here, is now almost entirely a closed legacy product. The only genuine whole of life and endowment policies still on the books are older contracts sold decades ago by AMP Life and the National Mutual Life Association, now serviced by Resolution Life NZ and no longer offered to new customers. Every major insurer's current range, including AIA, Partners Life, Fidelity Life, Chubb Life and Asteron Life, is built around term life cover instead. A licensed adviser can compare a named panel of these term insurers and structure cover to run for as long as it is needed.
In short
- Resolution Life NZ still administers old Whole of Life, Endowment and Pure Endowment policies; they are "no longer sold to new customers," with a policy loan rate of 6% a year, effective 1 June 2026 (Resolution Life NZ, retrieved 17 September 2026).
- Term and accidental death cover made up $1.64 billion of the $3.31 billion New Zealanders paid in annual life insurance premiums (FSC, Spotlight on Life Insurance, March 2026, retrieved 18 August 2026).
- On insurers' rate cards as at 8 September 2026, a stepped $500,000 term policy for a 35-year-old non-smoking man costs roughly $30 to $40 a month, rising to about $625 to $725 a month by 65 (indicative monthly cost from insurers' published rate cards as at 8 September 2026, Fidelity Life, Partners Life).
- New Zealand abolished estate duty for deaths from 17 December 1992 (Estate Duty Abolition Act 1993), removing a reason whole of life demand persists in the United Kingdom.
For most of the twentieth century, life cover from AMP or the National Mutual Life Association usually meant a whole of life or endowment policy: a fixed premium, a savings component, and a payout whenever death occurred. That market has not existed for new business here for a long time. This guide covers what still exists of whole of life cover in New Zealand, how term premiums compare on cost, and when each structure fits.
What Is the Difference Between Term and Whole of Life Insurance?
Term life pays a lump sum only if you die, or are diagnosed with a terminal illness, while the policy is in force, and ends with no payout if you outlive it. Whole of life is designed to pay out whenever you die and traditionally builds a savings or cash value alongside the cover.
Term life is the standard product sold by every major NZ life insurer today. Whole of life survives only as older, closed-book cover, covered next, or in modern products that borrow one feature, such as a premium that never increases, without the savings component. See the fuller guide to whole life insurance in NZ for why it largely disappeared.
Does Whole of Life Insurance Still Exist in New Zealand?
Yes, but only as a closed legacy book. Resolution Life NZ administers Whole of Life, Endowment and Pure Endowment policies tracing back to AMP Life and the National Mutual Life Association, and its product page states these "are no longer sold to new customers" (Resolution Life NZ, retrieved 17 September 2026). They are genuine whole of life contracts: increasing cover with a savings component accruing annual and end bonuses, and a policy loan on one attracts 6% interest a year from 1 June 2026 (same source). Resolution Life New Zealand Limited is a licensed insurer on the RBNZ register of licensed insurers (retrieved 9 September 2026), and Fitch gives it a first-time 'A' Insurer Financial Strength Rating in its own right, distinct from the AA- (Very Strong) rating Fitch assigns its parent, Resolution Life Australasia Limited (Resolution Life NZ, retrieved 16 September 2026).
The book is being folded into another insurer: a New Zealand statutory fund by 1 October 2026, then a proposed transfer of every policy to Asteron Life during 2027, renaming the combined business Acenda Life (Resolution Life NZ, Statutory Fund Restructure, retrieved 9 September 2026). If you hold one of these policies, get it reviewed before changing anything: cashing it in forfeits bonus value a term policy cannot restore. See Resolution Life NZ's entity page for its ratings.
Term vs Whole of Life: Side-by-Side Comparison
| Feature | Term life (current NZ market) | Whole of life (Resolution Life legacy book) |
|---|---|---|
| Available to new customers | Yes, from AIA, Partners Life, Fidelity Life, Chubb Life, Asteron Life | No |
| Cash or surrender value | None | Yes, annual and end bonuses |
| Premium structure | Stepped (yearly repricing) or level (locked at entry) | Fixed decades ago; policy loans now 6% a year |
| Cover duration | To a nominated age, or no stated expiry age on some policies | Lifetime, or to nominated maturity |
| Who can hold one today | Anyone; new applications accepted | Only existing policyholders |
Why Stepped Term Premiums Rise So Steeply With Age
A stepped premium is repriced against your age every year, and by your late fifties the rises compound enough that whole of life's old flat premium can look appealing by comparison.
| Age | Indicative monthly cost |
|---|---|
| 25 | $40 to $45 |
| 35 | $30 to $40 |
| 45 | $50 to $70 |
| 55 | $170 to $200 |
| 65 | $625 to $725 |
Indicative monthly cost, $500,000 stepped Life cover, male, non-smoker, occupation class 1, standard rates, rounded range from insurers' published rate cards as at 8 September 2026 (the QuoteHub Premium Index), including AIA and Fidelity Life. Indicative, not a quote, subject to underwriting.
The premium roughly doubles every ten years from 40 onward, the arithmetic that once made a fixed lifetime premium attractive. New Zealand no longer has a whole of life product on sale to weigh that rising cost against.
Stepped vs Level Term: The Closest NZ Choice to a Fixed Premium
New Zealand's real fixed-premium choice is level term, not whole of life, since no insurer sells whole of life to new customers. Level premiums lock in at your entry age rather than repricing yearly; they cost more upfront, but over a long hold the two lines cross and the level holder pays less overall. The stepped vs level premiums guide sets out that crossover, and the crossover analysis works through it by starting age.
Level premiums do not turn a term policy into whole of life. There is still no cash value, and the policy still ends if you stop paying or reach its expiry age. What it buys is predictability, without the savings component or the far higher cost.
The Closest Thing to Whole of Life NZ Insurers Sell Today
Two products come closest to whole of life's promise of cover that never has to be renewed: term with no stated expiry age, and guaranteed-acceptance funeral insurance with premiums that stop at an advanced age. Fidelity Life's Life cover has "no expiry age" while premiums are paid (Fidelity Life, retrieved 8 September 2026), functionally lifelong cover without the cash value whole of life builds.
| Insurer | Premium structure | No further premiums from | Cash-out or maturity feature |
|---|---|---|---|
| NZ Seniors | Level, no annual increase | Age 85 | 75% Early Cash Out from 85; 125% guaranteed payout at 100 |
| OneChoice | Level, no annual increase | Age 85 | Same structure |
| Momentum Life | Fixed for life | Age 89 | None published |
Each insurer's own policy document, retrieved 9 September 2026. None build a true cash value; the 125% payout NZ Seniors and OneChoice make at 100 is the closest a current product gets to a maturity benefit, and cover is capped at $30,000. See the funeral insurance comparison for the full provider table.
When Term Fits, and When Lifetime-Style Cover Fits
Term fits anyone whose need has an end point: a mortgage, dependent children, or a set number of working years. Lifetime-style cover fits narrower cases: funeral certainty, a lifelong dependant, or a business or estate obligation with no fixed horizon.
| Situation | Best fit today | Why |
|---|---|---|
| Mortgage and young family | Term life, stepped or level | Cover need shrinks as debt and dependency reduce |
| Funeral costs only | Guaranteed-acceptance funeral insurance | Small, capped sum, no medical underwriting |
| A lifelong dependant | Term to the longest expiry offered | No NZ product offers true lifetime cover |
| Business succession or buy-sell | Term matched to the loan or shareholding term | The obligation has a horizon, even if long |
| Estate planning equalisation | Term held as long as practical | No whole of life savings product left to buy |
Frequently Asked Questions
Can I still buy whole of life insurance in New Zealand?
No. Resolution Life's product page states its Whole of Life, Endowment and Pure Endowment policies "are no longer sold to new customers" (Resolution Life NZ, retrieved 17 September 2026). See the whole life insurance guide for the alternatives.
What happens to old whole of life or endowment policies now?
They stay with Resolution Life NZ, still accruing bonuses, with a proposed transfer to Asteron Life during 2027 (Resolution Life NZ, retrieved 9 September 2026). Cover continues; only the administering insurer changes.
What's the closest thing to whole of life that NZ insurers still sell?
Fidelity Life's Life cover has no stated expiry age while premiums are paid, and funeral insurers such as NZ Seniors charge a level premium for life with no further premiums from 85. Neither builds a real cash value.
Should I choose stepped or level term instead of chasing lifetime cover?
That depends how long you plan to hold the policy. The stepped vs level premiums guide is the more useful comparison, since whole of life is not on sale here.
Talk to a Licensed Adviser
Whether you are comparing term life quotes or working out what an old whole of life policy is worth keeping, a licensed adviser can look at the full picture with no pressure to buy.
Get matched with a licensed adviser through QuoteHub to compare a named panel of life insurance providers, or to get a legacy policy reviewed.
Disclaimer: This article is for informational purposes only and does not constitute financial advice. Financial advice is provided by Craig Smith Business Services Limited, trading as Smiths Insurance & KiwiSaver, a licensed Financial Advice Provider (FSP712931). QuoteHub is a trading name. Henry Smith is a Financial Adviser (FSP1010699). Cover availability, premiums, and policy terms vary by insurer and individual circumstances. Always consult a licensed financial adviser before making insurance decisions.
References
- Resolution Life NZ, Whole of Life and Endowment policies
- Resolution Life NZ, Statutory Fund Restructure
- Resolution Life NZ, Insurer financial strength ratings
- FSC, Spotlight on Life Insurance, March 2026
- Estate Duty Abolition Act 1993
- Fidelity Life, Life cover
- AIA New Zealand
- Partners Life, Life Cover overview
- NZ Seniors, Funeral Insurance Policy Document
- OneChoice, Funeral Insurance Policy Document
- Momentum Life, Funeral Insurance Policy Wording
- RBNZ, Register of licensed insurers
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