Frequently Asked Questions

Q: What does ............ mean?

A: See our Insurance Terms page or contact us.

Q: Why are NZLife. costs lower than others?

A: First, we have reduced overheads via the internet and the savings are passed to you. If you are comparing Life cover costs, these have reduced as we now live longer and suppliers are more competitive. Other benefits have been reduced to only the essential items - which means you do not pay for extras you may never need. Anyone with an existing policy over 1-2 yrs old should be able to save through NZLife. (See Cost Comparisons)

Q: I am currently a Kiwi overseas. Can I get cover?

A: Yes. All products provide worldwide and the NZLife. cost is likely to be considerably cheaper than elsewhere. You may pay via a Credit Card or a NZ Bank account.

Q: Can I cover my Mortgage?

A: Yes, the products can be used to cover mortgages. Some Mortgage Insurance products are designed to reduce as you pay off the mortgage and/or can only be used for repaying a mortgage. This can be dangerous if you add to the mortgage for additions etc. You can achieve the same using NZLife. and reveiwing and reducing or adding to your cover at any time. (There is no cost involved.)

Q: Is there anything that isn't covered?

A: Yes, there are a few instances where claims may not be paid out (see the Policy wording exclusions for full details):

Q: What if I submit my application, and then change my mind?

A: Simple - you can return the policy within 15 days and get a full refund if you change your mind for any reason.

Q: How is a claim made?

A: See the Claims page and follow the instructions.

Q: How soon will my insurance cover take effect?

A: You will have Interim cover from the time Sovereign receive your application until its acceptance. As soon as your application is accepted you will be covered. There is no 'stand-down' period with Term Insurance.

Q: How do I pay my premiums?

A: Premiums can be paid fortnightly by direct debit, monthly, or annually by direct debit or credit card.

Q: Can I apply for cover if I am outside the specified age range?

A: Yes. Email us or call us on 0800 2NZLIFE (269543) - we can provide cover for any age between 10 to 100.

Q: What if I have an existing medical condition?

A: The impact of your condition will need to be assessed by Sovereigns experienced underwriters who may contact you and/or your doctor to discuss your condition. It could result in increased premiums to reflect the extra risk associated with your medical condition or exclusion of your condition from your policy. It may however have no effect on your premium or policy. It all depends on the seriousness of your condition and how it's being managed.

If you have a serious medical condition or your application is declined on medical grounds we recommend you consider our No Medical Plan at www.goldenlife.co.nz

Q: What is an accelerated benefit?

A: The Total Permanent Disablement (TPD) and Critical Illness (Living Assurance) benefits offered on this site are accelerated or standalone. Accelerated means the benefits are additional to the Life cover selected, and if claimed will reduce the total Life cover by the same sum. For example, the Living Assurance benefit will be treated as an early payment of your life cover benefit. When Sovereign pays a Living Assurance benefit, the life cover benefit for that life assured will decrease by the amount paid for the Living Assurance benefit.

Q: What happens when the family's bread-winner dies?

A:In a case of premature death of a family's main or supplementary "bread winner" the first major problem faced by a family would be the repayment of all outstanding debt (mortgages, personal loans, taxes and funeral expenses). Repayment of such debt can be covered by adequate life insurance cover. The Needs Calculator attempts to ensure adequate cover is provided.

The Sovereign Life cover pays an immediate lump sum of $10,000 on death of the Life insured. This benefit can be used for grief counseling, estate advice, flights and accommodation for family members to attend the funeral, or to offset funeral expenses, or whatever your executors deem appropriate at the time. This benefit is an early payment of part of your Life Cover Benefit.

Q: How do families survive without the deceased's income?

A: A second - but perhaps more pressing need for the family would be to consider replacing the actual current and ongoing income lost through the death of the bread-winner. This is a much more comprehensive calculation because it must consider all possible expenses so as to allow for a capital sum, which invested today, will provide the desired income over the years to come.

Consideration needs to be given to:

The period dependent children remain as part of the household
The likely years, if any, of employment of the surviving partner.
The period in retirement.

Q: How can we solve the problem?

A: Use the Needs calculator which identifies the elements to assist you calculate the sum of insurance required to meet all immediate costs - plus the repayment of personal debt and or business liabilities. As well it helps you calculate the amount of capital required to fund the family's income requirements.

Q: I have an existing Sovereign policy and wish to add to it - what do I do?

A: Get a quote for the extra cover you need, and complete an online application. Please ensure that you include the existing policy number in the application, and we may be able to obtain a further discount for you.

Get a quote now.