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Life Insurance

We don’t expect our lives to be cut short, but the fact is that it happens to people every day. While life insurance can’t change that, it can change the financial impact on those we leave behind, on those we care for most.

Special Offer for July

Cash Bonus when you apply for cover online. Details
New World gift card when your policy is issued. Details
Discount for Life Cover + one other benefit. Details
Earn Airpoints Dollars™. Details

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.

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?

Take charge of the outcome and cover your life today.


Sovereign TotalCareMax Life Cover includes a range of additional special benefits designed to provide you and your family with support at a time when you need it most:

Death Benefit

Sovereign will pay a Life Cover Benefit when the life insured dies, whether from illness, accident, natural causes or any other means. The only exclusion is 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 Sovereign 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 Sovereign believes at its discretion, after considering medical evidence provided by your doctor and any other evidence required, will result in death within 12 months, regardless of any treatment you may receive.

Specified Terminal Conditions Benefit

You can apply to Sovereign 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).

This Specified Terminal Conditions Benefit will be treated as an early partial payment of your Life Cover Benefit.

Bereavement Support Benefit

As soon as Sovereign receives written notification of your death, a lump sum of Bereavement Support Benefit of $15,000 will be paid, without the need for any legal documentation to support the payment. 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. This payment is treated as an early payment of the Life Cover Benefit.

Repatriation Benefit

If you die while you are overseas, Sovereign will reimburse the owner of your policy for the costs of returning your body to New Zealand. If you are the sole policy owner, Sovereign will reimburse the person who has met those costs. The maximum amount of the repatriation benefit is 5% of your Life Cover Benefit, subject to a maximum amount of $20,000. The benefit is treated as an early payment of your Life Cover Benefit.

Financial Advice Benefit

If the life insurance benefit under your policy is paid out, either as a result of your death or terminal illness, then Sovereign will reimburse the policy owner or you as applicable for fees of up to $2,500 paid for financial planning advice received from an adviser approved by Sovereign. The financial planning advice must be paid for and claimed within three months of the life cover benefit having been paid out, and be supported by a valid receipt.

Children’s Funeral Benefit

If a child of the person insured under the policy dies as a result of injury sustained in an accident, within 90 days of the date of the injury and solely due to that injury, then Sovereign will pay a funeral benefit of $2,000 to the policy owner. The child must be between the ages of three and 10 years at the time at which the injury occurred. The benefit payment is deducted from the life insurance cover amount, and the premium is reduced accordingly.

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 Living Assurance Benefit;
  • An accelerated Progressive Care Benefit; or
  • An accelerated Total Permanent Disablement Benefit (Any Occupation basis, expiry at age 65).

The maximum cover allowed is the lower of 50% of the original Life Cover Benefit or $50,000.

Policy Features

Sovereign TotalCareMax Life Cover includes all the following great features:

Rock-Solid Backing

The policy is underwritten by Sovereign, New Zealand’s largest life insurer. Sovereign has an A+ (Superior) financial strength rating from A.M. Best Company, the highest rating of any life insurance company in New Zealand.

24 x 7 Worldwide Cover

Whether you’re at home, or travelling or working anywhere overseas for any period, our life insurance keeps you covered. Learn more about worldwide cover.

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.

Payment on Terminal Illness

It’s is more than just a life insurance policy. You can apply to have the entire amount of cover paid to you as a lump sum if you are diagnosed with a terminal illness.

Special Events Increase Facility

You can increase the amount of cover under your policy in a variety of circumstances, without any need for medical questions, examinations or tests. Learn more about the Special Events Increase Facility.


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

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

Increasing Discounts

The higher the level of life cover you apply for, the greater your discount will be. Learn how you can substantially increase your cover for just a small increase in your premium.

Guaranteed Enhancement

If any change is made to the underlying policy in the future, and that change would be favourable to you, then guaranteed enhancement means that the change will automatically be applied to your policy. Conditions apply.

Free-Look Period

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

Customer Guide

Download or view the customer guide:

Life Cover Customer Guide PDF

Life Cover Customer Guide

Life Insurance Calculator

Not sure how much cover you need? Our life insurance calculator has more advanced features than any other life insurance calculator in New Zealand. It takes into account your living circumstances, whether that is family-based or living alone, and whether you rent or own your own home. It also takes into account 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.

Want to Know More?

Do I need life insurance?

Check out the FAQs for answers to frequently asked questions.

View or download a copy of the policy wording.

How much do you really know about life insurance? Take our quiz and find out.

(Superior) Financial Strength Rating from A.M. Best Company, Inc. Rating scale

Special Offer

New World Promotion

Apply online today to be eligible for a 25% Cash Bonus, a $100 New World Gift Card (minimum premium required) and earn Airpoints Dollars™.
25% Cash Bonus details
$100 New World Gift Card details
Airpoints Dollars™ details

Plus, get a 10% Discount every year for any policy which includes either Life Cover for two people or Life Cover for one person plus at least one other eligible benefit (minimum cover and premium criteria apply).
Life + One 10% Discount details

Important Information

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