What is Life Insurance?

Life insurance is a policy which pays a non-taxable lump sum benefit in the event that you die or are diagnosed with a terminal illness. A terminal illness is defined as one which, based on medical evidence, will result in death within 12 months, irrespective of any treatment you receive.

AIA Living Life Cover

Life Cover is designed to provide your family with financial support at a time when they may need it most.

If something happened to you, how would those who rely on you be able to cope? As things now stand, would you be leaving them with debts and an uncertain future?

Minimum commencement age 10*
Maximum commencement age 70
Expiry age None

*The minimum commencement age for online applications is 16.

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Life Cover includes a comprehensive range of benefits:

Life Cover Benefit

AIA will pay a Life Cover Benefit when the person insured dies, whether from illness, accident, natural causes or any other means. The only exclusion is for self-harm (e.g. suicide), and this exclusion only applies during the first 13 months of the policy.

Terminal Illness Benefit

If you are diagnosed with a terminal illness, you can apply to AIA for early payment of up to 100% of your Life Cover Benefit. Terminal illness has a meaning which is set out in the policy, but in summary it is an illness which AIA believes at its discretion, after considering medical evidence provided by your doctor and any other evidence required, will result in death within 12 months, irrespective of any treatment you may receive.

Specified Terminal Conditions Benefit

You can apply to AIA for a Specified Terminal Conditions Benefit equal to 30% of your Life Cover Benefit, subject to a maximum of $250,000, if you are diagnosed with any of the following incurable terminal conditions:

  • Motor Neurone Disease;
  • Exocrine Pancreatic Cancer (Stages 3 or 4);
  • Non-Small Cell Lung Cancer (Stage 4); or
  • Distal Oesophageal Cancer (Stage 4).

Payment of this benefit will be treated as a partial payment of the Life Cover Benefit.

Bereavement Support Benefit

As soon as AIA receives written notification that an insured person has died, a lump sum Bereavement Support Benefit of $15,000 will be paid. This benefit enables immediate costs and expenses resulting from the bereavement to be met, such as paying for funeral arrangements and for family members to travel home.

Payment of this benefit will be treated as a partial payment of the Life Cover Benefit.

Parents Grieving Benefit

AIA will pay a Parents Grieving Benefit if a child of an insured person dies before age 21. A benefit will even be paid if a child of yours dies prior to birth but after at least 24 weeks gestation and you are the biological mother of the child. If the child is under age 10, the amount payable is $2,000 (the maximum under law), otherwise the amount payable is $15,000. Conditions apply.

Payment of this benefit will not reduce the Life Cover Benefit.

Special Events Increase Facility

This facility allows you to increase your Life Cover Benefit on the occurrence of any one of a number of ‘special events’ in your life without the need for any additional medical underwriting. Learn more about the Special Events Increase Facility.

Special Events TPD/Trauma Facility

On a specified special event occurring you can choose to add any one of the following benefits to your policy without providing further medical evidence:

  • An accelerated Critical Conditions Benefit;
  • An accelerated Progressive Care Benefit; or
  • An accelerated Total Permanent Disablement Benefit (on an Any Occupation basis, expiring at age 65).

The maximum amount of cover that can be added is the lower of 50% of the original Life Cover Benefit or $100,000. Other limits apply.

Financial and Legal Advice Benefit

If AIA pays a claim under the Life Cover Benefit, the Terminal Illness Benefit or the Specified Terminal Conditions Benefit, you can get reimbursed for up to $2,500 (including GST) for financial planning fees paid to an accredited adviser or for legal advice from a legal professional approved by AIA.

Repatriation Benefit

If you die, AIA will reimburse the cost of returning your body to New Zealand or your home country (the country in which you were born in or your country of permanent residence). The maximum amount of the repatriation benefit is 5% of the Life Cover Benefit, up to a maximum of $20,000.

Payment of this benefit will be treated as a partial payment of the Life Cover Benefit.

Counselling Benefit

Get reimbursed for up to $2,500 (including GST) for the cost of a psychiatrist or psychologist consultation and/or counselling where the support treatments and/or consultations directly relate to a claim under the Life Cover Benefit, the Terminal Illness Benefit or the Specified Terminal Conditions Benefit.

Payment of this benefit will not reduce the Life Cover Benefit.

Premium Conversion Facility

At any time, you can convert all or part of your Life Cover Benefit from a Rate for Age premium structure to a Level premium structure without needing to produce further medical evidence.

Suspension of Cover Benefit

Flexibility to suspend your cover for up to 12 months if you:

  • Go on parental leave;
  • Go on leave without pay for any reason;
  • Become unemployed or redundant;
  • Experience a reduction in pay of 20% or more (comparing the most recent payslip against a previous payslip from the same year); or
  • Are self-employed and experience a reduction in revenue of 30% or more (by comparing one month’s revenue against the same month for the previous year).

No premium will be payable during the period that cover is suspended. No claim will be payable for any claim event that occurs during the period that cover is suspended.

Please refer to the Policy Wording for full details of all benefits and any associated terms and conditions.

Policy Features

Life Cover includes the following features:

Financial Strength

The policy is underwritten by AIA New Zealand Limited, New Zealand’s largest life insurer. AIA New Zealand Limited has an AA (Very Strong) financial strength rating from Fitch Ratings.

24 x 7 Worldwide Cover

Whether you’re at home, travelling or working anywhere for any period (including overseas, even if you move overseas permanently), you remain insured.

Cover Never Expires

Your policy will not expire at any age. This means that there is no upper age limit to your cover. You can continue to be covered regardless of your age.


There is no GST payable on life insurance premiums. Under current New Zealand legislation, life insurance premiums are fully exempt from GST.

Lump Sum, Tax-Free Benefits

Under current legislation, any and all benefits payable under your life insurance policy are paid as lump sum, tax-free benefits, directly to the policy owner.

Automatic Enhancement

If any change is made to the underlying AIA Living policy in the future, and that change would be favourable to you, then the Enhancement Pass Back Benefit means that the enhanced change will automatically be applied (passed back) to your policy. Conditions apply.

Free-Look Period

If at any time during the 15 days following receipt of your policy you do not wish to continue with your cover (for whatever reason at all), you can return your policy for a full refund of all premiums paid.

Please refer to the Policy Wording for full details and any associated terms and conditions.


Life Insurance Brochure

Download or view the brochure:

Life Insurance Brochure PDF

Policy Wording

Life Cover Policy Wording

The Life Cover policy wording is comprised of the following documents:

AIA Living Umbrella Policy Wording PDF
The Umbrella Wording is common to all AIA Living policies.

Life Cover Policy Wording PDF
The Benefit Appendix is specific to the Life Cover benefit.

Life Insurance Calculator

Not sure how much cover you need? Try our life insurance calculator. It considers your living circumstances, whether that is family-based or living alone, and whether you rent or own your own home. It also considers any dependent children you have, by calculating the amount which is needed for their upkeep until they each attain the age of 18.

The KiwiCover life insurance calculator is designed solely for NZ conditions. It takes into account KiwiSaver and student loans, mortgages and other borrowings, and total household earnings. Unlike many other calculators, it provides a detailed breakdown of the amount of each liability to be covered, so you can understand how the total amount of cover is calculated. You can then choose to apply for the amount calculated or to fine tune that amount according to your own circumstances.

Life Insurance Calculator

AIA Vitality

AIA Vitality

AIA Vitality is a science-backed health and wellbeing program that supports and rewards you for making healthier choices.

Premiums for eligible insurance policies that cover you may be discounted in certain circumstances based on your membership and participation in the AIA Vitality program. You’ll receive an initial 10% premium discount in your first year.

A membership fee of $11.50 per month per member applies.

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Check out our FAQs for answers to frequently asked questions.


Do I need life insurance?

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Important Information

  • The above identifies and provides a brief summary only of the principal benefits under the policy. Please refer to the Policy Wording for full details of all benefits and the terms and conditions under which they are provided.