The two-year pre-existing condition exclusion explained

Written by Henry Smith · Reviewed by Smiths Insurance & KiwiSaver, licensed Financial Advice Provider (FSP712931) · Updated 2026-10-20 · Reviewed quarterly, when the underlying data is restated.

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.

A pre-existing condition exclusion means a death, or terminal illness diagnosis, linked to an illness, condition or symptom you had before your cover started is not paid for an early period. Under Momentum Life's Quick Life that period is the first 2 years. If death from a pre-existing condition happens within the first 24 months and no claim is payable, the premiums are refunded.

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Life cover: Conditions you already have aren't covered for the first 2 years (premiums refunded instead). Suicide isn't covered for the first 2 years, and a few conditions can be excluded permanently.

Funeral cover: Only accidental death is covered for the first 2 years. Total premiums can add up to more than the cover, and it may not meet the whole cost of a funeral.

Insurer: Momentum Life Limited. Financial strength rating B (Fair) from AM Best, affirmed 11 February 2026; B ratings sit in AM Best's 'vulnerable' range. The rating scale is available for inspection at every Momentum Life office in New Zealand. What this means

Already have cover? Keep it. New cover won't pay for a condition you already have in its first 2 years.

Opens Momentum Life's online application; its guidance only covers eligibility. QuoteHub is a Momentum Life partner. Smiths Insurance & KiwiSaver may receive a commission if you buy. General information, not advice.

Quick Life is guaranteed acceptance life cover issued by Momentum Life Limited: ages 18 to 65, no health questions or medical exam. Because the insurer does not ask about your health, it limits what it pays early. The policy works in two stages. In the first 2 years it pays for accidental death and for any new medical condition that arises after the policy starts, but not for suicide, intentional self-harm or anything directly or indirectly related to a pre-existing medical condition. After 2 years the cover includes pre-existing conditions as well, with the exception of a few specific conditions that can be permanently excluded and are listed in the policy schedule. This page reads the wording clause by clause. It applies to Quick Life only; Momentum's Funeral Insurance has a different early rule, covered below.

Where the exclusion appears in the wording

The rule appears in several places in Momentum Life's Quick Life Policy Wording (November 2025) (Momentum Life: Quick Life Policy Wording).

Section	What it says
Key features	"Any medical conditions you already have will be covered after a 2-year wait period, except for some specific conditions we'll explain in your policy document."
"What you're not covered for"	No benefit for death by any other means or terminal illness within the first 2 years (or from reinstatement) if it is related to a pre-existing condition, or to suicide, attempted suicide or intentional self-harm "regardless of your mental state". If the person dies from a pre-existing condition within the first 24 months and no claim is payable, premiums are refunded.
"When we won't pay a benefit"	The same 2-year rule, applying to the increase portion only if you increase cover (not automatic increases) and to a reinstated policy.
Definitions	"Pre-existing medical condition" is defined in the glossary.

What counts as pre-existing

The glossary defines it as any illness, condition or symptoms you had during the 2 years before the policy started, or before an increase (for the increased portion) or a reinstatement. It includes anything you:

had treatment or advice for;
noticed symptoms of, even if undiagnosed; or
would reasonably have been aware of.

It "also includes some specific health markers": very high blood pressure, cholesterol over 7.0, a BMI over 40, or complications related to diabetes. The earlier summary pages describe a pre-existing condition in shorter terms, as something you were aware of, had treatment or advice for, or that was serious enough for a reasonable person to see a doctor about, without mentioning the 2-year look-back. The glossary is the formal definition, but if a long-ago condition worries you, ask Momentum Life how it would be treated before you apply.

Quick Life does not ask about any of this at application, so nothing is checked until a claim. At claim time, Momentum Life can ask for supporting information; the wording says a claim can need a form from the treating practitioner, test results and a death certificate or confirmation of diagnosis.

What is still paid in the first 2 years

Accidental death. The wording defines it as death that results directly from an accident, within 90 days of that accident.
Death from a condition that first arises after the policy starts. The wording describes this as "any new medical conditions that arise after your policy starts".
The always-excluded causes (alcohol or drug effects unless a prescribed drug was taken exactly as instructed, war, terrorism, criminal activity, and listed dangerous jobs or pastimes) are excluded at any time, not only in the first 2 years.

Worked examples

These are illustrations of how the clauses apply, not predictions of how a particular claim would be decided. Each claim is assessed on its own facts.

Situation	Under the wording
Death from an accident in month 6	Covered, if the death is within 90 days of the accident.
Death in month 10 from a cancer first diagnosed in month 8	A condition that arose after the policy started is covered, unless symptoms, advice or treatment in the 2 years before link it to a pre-existing condition.
Death in month 14 from heart disease treated in the year before the policy started	Related to a pre-existing condition: no benefit; because death is within 24 months and no claim is payable, premiums are refunded.
Death in month 10 from suicide	Excluded in the first 2 years. The wording states a refund only for pre-existing-condition deaths, so none is stated here.
Terminal illness diagnosed in month 12, linked to a condition treated before the policy	No benefit in the first 2 years.
The same death in month 30	Pre-existing conditions are covered after 2 years, unless the condition is one listed as permanently excluded in the policy schedule.

What restarts the 2 years

The clock can start again. The wording says the 2-year rule also applies if:

you increase the benefit, for the increase portion only. Automatic increases are excluded from this: the annual 3% indexation does not restart anything;
the policy is reinstated after being cancelled for unpaid premiums; or
you cancel and rejoin. The wording says that if you change your mind later you must reapply, "your two year standdown period will recommence" and premiums already paid are not refunded.

This matters if you are thinking of replacing cover. The Financial Markets Authority advises keeping the old policy until the new one is in force, and watching for new qualifying periods and pre-existing exclusions (FMA: Insurance).

After the 2 years: the permanent exclusions

After 2 years, pre-existing conditions are covered "except some specific conditions" that can be "permanently excluded (listed in your policy)". The general wording does not list them. They appear in the policy schedule, which Momentum sends you when the policy starts. Quick Life gives 30 days from the policy start date to cancel for a full refund, if no claim has been made, so read the schedule in that window. Special terms added when cover starts still apply after 2 years.

Full medical underwriting versus a two-year exclusion

With cover that asks health questions, the insurer assesses your actual conditions up front. It can accept on standard terms, add a loading, exclude a condition permanently or for a set time, add a stand-down, postpone or decline; Asteron describes adding a stand-down, raising the premium or excluding the condition (Asteron). In return you must disclose honestly: IFSO case notes show insurers avoiding or reducing claims for non-disclosure (IFSO). If you are healthy, that route can be cheaper and has no blanket two-year exclusion for existing conditions. If you have been declined or loaded, the two-year exclusion may be an acceptable price for cover. The full comparison is on our guaranteed acceptance versus full medical page, and the general idea is in our guide to pre-existing conditions.

Not the same as Funeral Insurance's rule

Momentum's Funeral Insurance (ages 40 to 75, $3,000 to $30,000) has no pre-existing condition clause. Instead, in its first 24 months it pays only for accidental death within 90 days of the accident, and any other death in that window pays no benefit and returns all premiums for that person (Momentum Life: Funeral Insurance Policy Wording). A natural-cause death from a brand-new illness is covered by Quick Life in its first 2 years and not by Funeral Insurance in its first 24 months. The two windows are the same length but cover different things. For Funeral Insurance, total premiums can exceed the benefit, and the benefit may not cover the whole funeral.

Before you apply

The buttons on this page open Momentum Life's online application for Quick Life. Momentum's A.M. Best rating is B (Fair), which Momentum's own table places in its "Vulnerable" range; see its financial strength page. QuoteHub is a Momentum Life partner, and Smiths Insurance & KiwiSaver may receive a commission if you buy a Momentum policy; 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). More on the product: Quick Life, Momentum Life, the waiting periods guide, and what guaranteed acceptance means. Back to the guaranteed acceptance hub.