Life Insurance basics

What Is Life Insurance?

With life insurance you choose a lump sum amount (for example $300,000). This amount is paid out if the insured person dies or is terminally ill (which means that they have 12 months or fewer to live).

Who is paid?

The lump sum is paid to the insurance's "policy owner".

Who can apply?

It can vary by insurer, but usually any person between the ages of 16 & 74 (and who is a NZ Citizen or a permanent resident) can apply.

Note: if you are in New Zealand on a work visa and are currently in the process of applying for residency you may also be eligible. And New Zealand Citizens or permanent residents living overseas can also get cover in many situations. Please contact us for further details on 0800 800 400.

What is covered?

Life insurance covers any cause of death - e.g. sickness, accident, etc.

What isn't covered?

The only standard "exclusion" is for suicide within the first 13 months of setting up the policy.

In some rare cases, Insurers can decline a claim if there has been significant "non-disclosure" on the application form (for example not mentioning a history of illness). For this reason, if you are not sure about the relevance of any information it's always best to include it on your application (or contact LifeDirect to discuss whether to include it).

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