A health condition doesn’t automatically disqualify you from life insurance in New Zealand. But it does affect how insurers assess your application — and what terms they offer. Here’s how it works.
How NZ Life Insurance Underwriting Works
When you apply for life insurance, the insurer’s underwriters assess your risk based on your:
- Age and gender
- Current health status
- Medical history (past conditions, surgeries, medications)
- Family history (heart disease, cancer, diabetes in parents/siblings)
- Occupation and lifestyle
- Smoking status
- Sum insured
For most people in good health, this is straightforward. For people with a history of illness or ongoing conditions, underwriters may apply a loading, an exclusion, or in some cases decline cover.
What Can Happen with a Pre-Existing Condition
1. Standard terms (no change)
Many conditions — particularly those that are well-controlled, resolved, or in remission — are accepted at standard rates. Examples include well-managed asthma, resolved skin conditions, past fractures, and some historic mental health episodes.
2. Premium loading
The insurer accepts you but charges a higher premium to reflect the increased risk. This is common for conditions like:
- Controlled Type 2 diabetes
- Elevated BMI
- Well-managed hypertension
- History of depression (depending on severity and recency)
Loadings are usually expressed as a percentage: a 50% loading on a $100/month base premium means you pay $150/month.
3. Specific exclusion
The insurer covers you at standard rates but excludes claims related to the specific condition. For example, someone with a history of back problems might have spinal conditions excluded from a trauma or disability policy. Life insurance exclusions are less common since death is the trigger — a back condition doesn’t affect your mortality risk as directly as a heart condition.
4. Postponement
If you have a recent diagnosis or are undergoing active treatment, the insurer may defer your application for 6–24 months and ask you to reapply once the situation has resolved or stabilised.
5. Decline
Some conditions — particularly advanced cancers, serious heart disease with recent events, or severe mental illness — may result in decline. Declines aren’t permanent; circumstances can change, and other insurers may assess risk differently.
Common Conditions and Typical Outcomes
| Condition | Typical outcome |
|---|---|
| Controlled asthma | Standard or minor loading |
| Type 2 diabetes (well-controlled) | Loading, sometimes exclusion |
| Depression/anxiety (historic, treated) | Standard or loading depending on severity |
| Heart attack (>5 years ago, recovered) | Loading or exclusion |
| Cancer (in remission, >5 years) | Possible standard, depends on type |
| Active cancer treatment | Postponed |
| Sleep apnoea (with CPAP treatment) | Often standard |
| Obesity (BMI 35+) | Loading likely |
| HIV (well-managed with ART) | Now accepted by some NZ insurers with loading |
These are general guides only. Every application is assessed individually.
How to Get the Best Outcome
Use an insurance adviser
Advisers who specialise in life insurance know which insurers are most lenient for specific conditions. They can approach multiple insurers simultaneously and negotiate on your behalf. This is especially valuable if you have a complex health history — going direct to one insurer and being declined creates a record that other insurers may ask about.
Be honest on your application
Non-disclosure (leaving out health history) can void your policy. If you die and the insurer discovers undisclosed medical history at claims time, they can decline to pay — leaving your family with nothing. Always disclose fully.
Get a non-binding assessment first
Most advisers can submit an application without full underwriting to get a pre-assessment from an insurer’s underwriting team. This gives you an indication of terms before you formally commit.
Consider the sum insured
If you can’t get full cover, a smaller sum insured may be accepted at standard rates. Some cover is better than none.
Review your cover periodically
If your condition improves (e.g. sustained remission, weight loss, discontinued medication), it’s worth requesting a policy review. Loadings can sometimes be reduced with medical evidence of improved health.
Conditions That Are Often Excluded from NZ Policies Altogether
Some exclusions apply regardless of health status, depending on the insurer:
- Active participation in certain extreme sports
- Aviation other than as a passenger
- War or civil unrest
- Self-inflicted injury (note: suicide exclusions typically only apply in the first 13 months of a NZ policy)
Getting Life Insurance After a Decline
If one insurer declines you, others may not. NZ has multiple life insurers — AIA, Partners Life, Asteron Life, Fidelity Life, nib, Cigna — each with their own underwriting philosophy. An experienced adviser with access to multiple providers is your best resource here.
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