Call 0800 808 234 for a quote and to apply

AA Life Living Expenses Cover


Living Expenses Cover pays up to $3,500 per month if you're temporarily unable to work due to sickness or injury.

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 How Living Expenses Cover works

In the unfortunate event of becoming disabled due to a sickness or injury and being unable to work 10 hours a week in your usual occupation, your Living Expenses Cover policy could pay your chosen cover amount monthly in advance.

A 30-day waiting period applies for all claims. This means that you must still be unable to work 30 days after you first become sick or disabled before you can start receiving your Living Expenses benefit payments.

Once your claim has been accepted, we will continue to pay the Living Expenses benefit monthly in advance for each month that you’re unable to work, until you reach the end of your chosen Benefit Period or reach age 65.

 Flexible cover – choose your benefit period

You can choose the maximum length of time you could get paid if you were unable to work with the options of either 2 years, 1 year or 6 months. The shorter the benefit period, the lower your premiums will be. The advantage of a longer benefit period is that if you are unable to work for a lengthier period of time you could receive cover for longer giving greater financial certainty.

 Easy set up

The application process involves a few easy questions you can answer over the phone. Call us on 0800 808 234 for a quote and to apply.

 Flexible, affordable premiums

Your premium will depend on certain things such as your age, gender, whether or not you smoke, your occupation, the benefit period you choose and how much cover you require. Premiums will be reviewed each year as you get older but you could have cover in place for as little as $10 a month.

 Mental health benefit

In addition to being covered for sickness or injury, if you experience a mental illness and are unable to work you could receive Mental Health Benefit payments for up to six months.

 How does Living Expenses Cover work with ACC?

If you’re eligible to receive, or are receiving, benefit payments from ACC for your disability, then you won’t be able to receive payments from your Living Expenses Cover policy.

If you’re ineligible to receive payments from ACC for your disability, you’re able to apply for Living Expenses Cover payments.

 Recurrent disability benefit

If you experience the same or related disability and are unable to work within 12 months of previously claiming for the same or a related disability, this will be considered part of the same disability event and the wait period will be waived.

 Disability reset benefit

If you return to work for more than 12 consecutive months after making a claim for a disability your benefit period will be reset, meaning you’re eligible to claim for the full benefit period again if you were to experience that same or related disability again.

 How much cover can I get?

The maximum level of cover you can apply for is 50% of your average monthly gross income (before tax) over the past 12 months, up to a maximum of $3,500 per month.


To be eligible to apply for Living Expenses Cover you must be aged between 20 and 55 and be living and working in a stable job in New Zealand at the time of application. You must also either be a New Zealand citizen or hold a valid visa allowing you to work in New Zealand for at least the next 12 months.

 30-day no-obligation review

You enjoy a 30-day no-obligation review – if AA Life Living Expenses Cover is not what you expected or you change your mind, we'll cancel your policy and refund any premiums paid.

 Great discounts

AA Members get a 5% discount on new policies, plus you may qualify for a 10% health and lifestyle discount depending on your answers to a few simple questions.

 Inflation protection

We’ll make sure your cover keeps pace with inflation each year, and adjust your premiums accordingly.

 Length of cover

All cover will end when you turn 65.

See the Living Expenses Cover policy document for full details.

Who it covers People between the ages of 20 and 55 years old at application time
Application process Health and lifestyle questions
Coverage begins Immediate cover on acceptance
Coverage types Benefit period of 6 months, 1 year or 2 years
Coverage term Covers you up to age 65
Payout amount Up to $3,500 per month

Call 0800 808 234 for a quote and to apply

What's covered

What’s covered

  • If you’re currently working over 20 hours per week, you could receive a monthly benefit following sickness or disability if you cannot work 10 or more hours per week in your current job. 
  • If you’re working less than 20 hours per week, you could receive a monthly benefit following sickness or disability if you cannot perform two or more Activities of Daily Living without assistance from someone else.

What's not covered

On the whole, most people don’t put themselves at risk or in harm’s way. But if you do, you may find this policy isn’t right for you. If your disability occurs as a result of any of the exclusions included in this policy you’ll not be covered. For a complete list of exclusions please refer to the Living Expenses Cover policy wording.

Paying premiums

Premiums can be paid fortnightly, monthly (direct debit and credit card only), quarterly, half-yearly or annually by direct debit, credit card or cheque.


  • What is ‘disability’ defined as for Living Expenses Cover?

  • What is a Waiting Period?

  • What does being ‘Unable to Work’ mean?

  • What is the definition of a Usual Occupation?

  • What is the definition of Activities of Daily Living (ADL)?

  • Why do we stop the benefit payment at age 65?

Making a claim

To make a claim, contact AA Life

  • Telephone: 0800 874 444
  • Email:
  • Mail: AA Life Claims, PO Box 894, Wellington 6140.

We will tell you what information we require. You are responsible for the cost of providing this evidence.

Payments under this policy will be made when:

  • we have received properly completed claim form(s)
  • we have acceptable evidence of the identity and legal title of the person making the claim;
  • we are satisfied that the claim is legal and valid; and
  • we have received the information necessary for our assessment of the claim.

You can be covered by more than one Living Expenses Cover policy issued by Asteron Life Limited. The total maximum combined cover possible for you under any Living Expenses Cover policies issued by Asteron Life Limited is $3,500 per month.

Can you claim from overseas?

You can be paid in New Zealand dollars for up to 3 months of claim payments if you’re claiming while overseas. At the end of the 3 month period, you’ll be required to return to New Zealand to undergo an assessment by a Registered Doctor.

Who will the benefits be paid to?

All benefits under this Living Expenses Cover policy are payable directly to you as the Policy Owner.

Have a question or need life insurance guidance?

Call us at 0800 808 234

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