This page explains how our insurance premiums are calculated.

Premiums in the First Year

The premium displayed when you obtain a quote on this website is the premium which will apply in the first year of your policy (subject to acceptance and underwriting).

Premiums in Subsequent Years

Unless otherwise specified, premiums for each subsequent year will be calculated according to your age at the beginning of each new policy year, and will therefore be different from the amount paid in the first year. This is known as Rate for Age. Depending on your age and the type of cover you have, your premiums may go up or down each year. This is a feature which is designed to keep the cost of your cover low, so that you only pay premiums for your current age, and not for any future age.

This is just like home insurance or car insurance—you pay only for the cost of cover for the ensuing year, and not for any future years when you might not need the cover at all.

Premiums are calculated for each age and gender, and they simply reflect claim rates for each of those ages and genders in New Zealand. This is a fundamental principle of yearly renewable cover—the premium is calculated based on claim rates for your current age and gender, so that you pay only for the cost of your cover today, and not for the cost of your cover tomorrow and not as a subsidy for someone else’s cover.