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Frequently asked questions

These FAQs will help you understand commonly asked questions about life insurance and our range of covers. 

If you can’t find the answer you’re looking for, or have any other questions, please contact our customer service team on 0800 AA LIFE (0800 225 433), Monday to Friday 8.30am – 5pm, or visit an AA Centre during opening hours. 

Terminology Image

Terminology

General questions Image

General questions

Who can apply Image

Who can apply

Application process Image

Application process

Cost and premiums Image

Cost and premiums

Claims Image

Claims

Life Cover Image

Life Cover

Income protection insurance Image

Income protection insurance

Serious illness Image

Serious illness

Cancer insurance Image

Cancer insurance

Funeral insurance Image

Funeral insurance

Accidental death Image

Accidental death

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Terminology

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A premium is the amount of money you pay to keep your policy active.

Cover means the protection the policy provides while in force. Specifically, it defines the nature of specific events that can result in a claim payment. It can be talked about in terms of the amount of cover (the amount paid out), the period of cover (how long the protection lasts), what is covered (death, illness or injury) and who is covered (the insured person named in the policy).

An underwriter is the person (or team) at an insurance company who evaluates risk and decides whether to approve your insurance application—and on what terms.

A beneficiary is the person (or people, or even an organisation) you choose to receive the insurance payout if you die while the policy is in force.

Having a named beneficiary makes sure the money goes exactly where you want it to, meaning that the money can be used straightaway to cover living expenses, debts, mortgage, or funeral costs. Without a beneficiary, the payout may go to your estate and be tied up in probate.

You can add beneficiaries to Life Cover, Funeral Cover and Accidental Death Cover. 

A joint owner is the person who owns the policy with you. When the person insured dies, having a joint owner means the claim payment can be made to them rather than going through the person insured’s estate.

If you choose to have a joint owner, they will have joint ownership rights to the policy. This means they will need to consent to any changes to your policy after purchase such as change of address, wanting to increase or decrease the policy value or requesting a premium holiday.

Under Life Cover, Serious Illness Cover and Funeral Cover, we offer a premium holiday. 

If you’re experiencing financial hardship, involuntary unemployment or bankruptcy and can't reasonably afford your premiums, you can apply to us for the Premium Holiday Benefit. If accepted, your premiums are put on hold for a maximum of six months from the time you tell us in writing, so you don't have to cancel the policy while you get back on your feet. You do not need to pay us back. To be eligible, you must meet certain criteria. Please read your policy wording for the terms and conditions of this benefit under each cover.

Consumer Price Index (CPI) is a measure of inflation - it tracks how the prices of everyday goods and services change over time for households.

The cover amount for Life Cover, Income Protection Cover and Serious Illness Cover automatically increases each year on the anniversary of the date your policy starts in line with CPI, or 2% - whichever is higher (subject to the relevant maximum cover limit), so your cover keeps up with the rising cost of living (unless you tell us that you don't want your cover to be adjusted before your policy anniversary date).

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General questions

Whether life insurance feels worthwhile depends on your personal situation and what matters to you. We can’t tell you whether you should have cover, but we can explain how it works so you can decide whether it’s something you want to have in place.

No. Health insurance pays for medical treatment or hospital bills, while life insurance pays money to help with things like living costs, debts, or time off work if the person insured passes away or is terminally ill.

Living insurances can also help with these costs if the person insured is diagnosed with serious illness or unable to work due to illness or injury.

No. To get AA Life Insurance, you can either apply online, call us on 0800 AA LIFE or visit one of our AA Centres.  As part of the application process, we let you know what covers are available and how they work. If you'd like to receive financial advice, you can get professional advice from a financial adviser.

No. The information on this site and from the AA Life Insurance team is general information only. We can explain how the cover works, but we can’t tell you what to choose or how much cover to get.

If you’re unsure, take your time, read the details, or contact us to help explain things. If you'd like to receive financial advice, you can get professional advice from a financial adviser.

No. We can’t recommend products, cover amounts, or what’s best for you. What we can do is explain how the cover works and answer questions so you can make your own decision.

Yes. It’s common for people to have more than one type of cover, such as Life Cover, Serious Illness Cover, or Income Protection. Each type of cover is designed to help with different situations. During the application process, you can choose to apply for one cover on its own, or a combination of covers. Maximum cover amounts may be applied across a combination of covers.

You can still apply for AA Life Insurance. As long as you meet eligibility requirements and maximum limits, you can keep your existing policy. If you’re considering replacing your existing policy, be aware that this can involve risks, such as losing cover or benefits. Take time to understand what would change before making a decision.

If you leave New Zealand after your cover starts, your policy can usually continue. If you’re planning a long-term move, it’s a good idea to contact us so we can explain how this may affect your policy.

Yes. AA Life Insurance provides worldwide cover. If an income protection claim needs further assessment, the person insured may need to return to New Zealand.

We can’t give tax advice, so you may want to check with the Inland Revenue or a tax adviser. Generally, lump sum payments for our life insurance covers are not taxed. Our general understanding is that Life Cover, Accidental Death Cover, Funeral Cover, Cancer Care Cover and Serious Illness Cover premiums are not tax deductible while Income Protection premiums usually are tax deductible.

AA Life Insurance Connected Care is a virtual health care service provided by Teladoc Health Australasia Pty Limited. It connects users with leading medical and wellbeing specialists, such as GPs, mental health professionals, registered dietitians and qualified fitness specialists to provide guidance and support around health and wellbeing.

All AA Life Insurance policyholders receive complimentary access to it for themselves, their partner, children, parents and parent-in-laws.

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Who can apply?

No. You don’t need to be an AA Member to apply for AA Life Insurance, but members get a 5% discount when they provide a valid AA Membership number at the time of purchase. The discount applies to the total premium.

Yes. You need to live in New Zealand to apply. Once your cover starts, you’re generally covered worldwide.

In some cases, yes. Eligibility depends on your visa type and how long you’re allowed to stay in New Zealand. We’ll ask about this during the application.

Except for Funeral Cover, the person to be insured needs to apply for the cover themselves.

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Application process and health & medical questions

You can get a quick quote online in around 2 minutes, and the application takes between 15 - 25 minutes to complete online depending on your personal circumstances.

To get AA Life Insurance, you can either apply online, call us on 0800 AA LIFE or visit one of our AA Centres.

Answering health and lifestyle questions depends on the type of cover you apply for. If you only apply for Accidental Death Cover, Cancer Care Cover or Funeral Cover, the only health and lifestyle question you will be asked is whether you’re a smoker. For our other covers, you will need to answer health and lifestyle questions. 

Understanding medical terminology shouldn’t be a barrier to choosing the right life insurance. That’s why AA Life Insurance provides a Medical Glossary, designed to explain commonly used health terms simply and clearly, so you know exactly what your policy is talking about.

No medical examinations, reports, or doctor’s notes are required as part of your application. 

We'll ask you to answer medical questions we need to know during your application process so that we can give you accurate pricing. We won't need you to follow up with further medical information or complete any medical checks - once your application is complete, it's done. Medical information or medical checks may be required for assessing a claim under the policy.

A pre-existing condition is an illness or condition you were aware of, or had symptoms of, before your cover started or restarted. Some pre-existing conditions may be excluded from your cover. Any exclusions are confirmed before your policy begins.

That’s okay. If you’re unsure, contact us for help explaining the question. If you're unsure how to answer a medical question, it’s a good idea to talk with your doctor or check your medical records before answering. 

It’s important that the information you provide is correct and answered honestly to the best of your knowledge and understanding at the time. Giving incomplete or incorrect information could affect how your application is assessed or how future claims are handled.

You can add a beneficiary as part of the application process for Life Cover, Accidental Death and Funeral Cover, or if you'd like to add one later, you can do so by completing the Nominated Beneficiary Form online, or by getting in touch with us. The beneficiaries’ details are loaded against your policy so that any payouts are made to them directly. 

Yes, you can name up to 10 beneficiaries. Nominated beneficiaries can only be applied to Life Cover, Funeral Cover and Accidental Death Cover.

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Cost and premiums

The cost of life insurance varies from person to person. Things like age, smoking status, occupation, and the type and amount of cover all make a difference. You’ll see the confirmed cost for the cover(s) you choose as part of the application before you decide whether to go ahead. 

Minimum and maximum cover amounts depend on the type of cover and the premium you’re paying. These limits are explained during the application process.

Yes. You can reduce your cover at any time. If you want to increase your cover, please contact us and let us know. Terms and conditions will apply to your application when you consider increasing your cover.

You have 30 days from the start of your policy to change your mind. If you cancel within this time, and have not made a claim, you’ll get a full refund of any premiums paid. Claims made during this period will be paid, provided the policy remains in force.

Yes. You can cancel your policy at any time. If you cancel within the 30 day no-obligation review period, and have not made a claim, we'll refund any premiums you have paid. If you cancel after this, you won't receive a refund unless you've paid in advance, in which case we'll refund you for any future period already paid for.

Premiums can change depending on what cover(s) you have on your policy. If you increase your cover, your premium will increase to reflect that change. Some covers have premiums that will increase each year as you get older. We’ll always let you know before any change happens.

Yes. Age and smoking status are factors used to calculate premiums, along with other details such as health and occupation (for some covers).

If you have been smoke-free for 12 months, you may be eligible for a premium decrease. Please contact us to discuss your individual situation.

The policy start date will be shown in your policy summary. Some covers start when you receive confirmation that your application is accepted, while others have a standdown period. You will be advised of this as part of your application.  

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Claims

If something happens, contact us as soon as you can. We’ll explain the next steps and what information is needed. The exact requirements depend on the type of claim. For more information, head to our make a claim page. 

The documents needed depend on the type of cover and the claim. This may include medical or financial information. We’ll tell you exactly what’s required and help guide you through the process.

Who receives the payment depends on the type of cover and how the policy is set up. For Life Cover, Accidental Death Cover and Funeral Cover, you can nominate a beneficiary (who will receive the funds), or the money will be paid to any surviving policy owners or your estate (depending on the cover type and benefit being claimed). Serious illness claims are paid to the policy owner(s) whereas income protection claims are paid to the person insured.

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Life Cover

Life Cover pays a lump sum if the person insured dies, regardless of whether the cause is illness or injury, as long as the policy terms and conditions are met.

No. Life Cover pays a lump sum if the person insured dies from illness or injury, as long as the policy terms and conditions are met. We have a specific cover for accidental death.

You may be able to, but the terms of your policy may be changed. For instance, a premium increase may apply (this means that your premiums may be more expensive). Any exclusions or increase in premium are made clear to you as part of the application process.

Yes. You can hold more than one life insurance policy (subject to maximum cover limits), as long as you meet eligibility requirements.

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Income Protection Insurance

AA Life Insurance Income Protection Cover pays a regular monthly payment if the person insured can’t work because of illness or injury. 

The payments are designed to help with everyday living costs, like rent, mortgage payments, or bills, while the person insured is unable to work due to illness or injury (subject to waiting periods and maximum benefit periods). 

You choose a monthly benefit when you apply for AA Life Insurance Income Protection Cover, up to 75% of your before-tax income (as calculated in accordance with the policy and up to a maximum of $8,000 per month).

If your claim is accepted, we’ll pay up to that chosen amount, as long as it doesn’t exceed 75% of your income from before you became unable to work.

Income received while disabled (such as ACC or other insurance payments) may affect the amount paid.

A waiting period is the amount of time the person insured must be unable to work before income protection payments can begin.

You choose the waiting period when you apply. Shorter waiting periods mean higher premiums, and longer waiting periods mean lower premiums.

This is the maximum time payments can be made for a claim. You can choose a 2-year or 5-year benefit period. The longer the benefit period, the more protection you have if your recovery takes time. However, a longer benefit period will also mean a higher premium. 

You need to have worked 20 – 60 hours per week on average for the last 12 months to apply.

No. Unfortunately, AA Life Insurance Income Protection Cover isn’t available for self-employed people.

If you’re unsure whether your work situation is considered self-employed, you can contact us and we can help explain how this applies to you.

Yes. Occupation is used to calculate Income Protection Cover premiums. 

If the person insured becomes unable to work because of illness or injury, and in our opinion it’s likely to last beyond the waiting period, we may be able to help support their return to work.

If we agree in advance, we can reimburse some rehabilitation, retraining, or support costs as part of an agreed plan to help the person insured return to work when they are ready.

The maximum we’ll pay is up to six times the monthly benefit for each claim. Costs must be agreed with us before they’re incurred, and this benefit isn’t automatic.

If the person insured becomes ill or injured and can’t work, contact us as soon as you can.

We’ll explain what information is needed, which may include medical and financial details, and guide you through the process. Payments start once a claim is accepted and the waiting period has been met.

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Serious Illness Cover

You may see this type of cover called serious illness, trauma, or critical condition cover. What’s covered varies from one policy to another.

AA Life Insurance Serious Illness Cover pays a lump sum if the person insured is diagnosed with certain defined serious illnesses from the policy wording, including cancer, early-stage cancer, has a heart attack or stroke, or becomes seriously incapacitated. This money can be used for treatment costs, time off work, rehabilitation, mortgage payments, or anything else that helps them focus on their recovery.

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Cancer insurance

Cancer insurance is a general term people use to describe insurance that pays out if someone is diagnosed with cancer.

With AA Life Insurance, cancer-related cover can be provided in two different ways:

  • Serious Illness Cover – pays a lump sum if the person insured is diagnosed with certain defined serious illnesses, including cancer, early-stage cancer, as well as conditions like heart attack and stroke.

  • Cancer Care Cover – pays a lump sum if the person insured is diagnosed with a certain type of cancer, including an early-stage cancer benefit for some types of cancer.

Serious Illness Cover protects against a wider range of defined serious health issues, while Cancer Care Cover is focused specifically on cancer.

Both types of cover pay a lump sum that can be used in any way, such as helping with treatment costs, living expenses, or time off work.

We only pay one Cancer Care Benefit and one Early-Stage Cancer Benefit under Cancer Care Cover and one Serious Illness Benefit and one Early-Stage Cancer Benefit under Serious Illness Cover. This means you won't receive payouts twice, even if you've been diagnosed with a different type of cancer.

Some cancers are considered to be 'early stage cancers' and are not covered for the full amount of cover initially. However, the Cancer Care Cover has an Early-Stage Cancer Benefit (10% of your cover amount, up to $10,000) to help with the treatment and recovery of these cancers. Should the cancer develop into something more serious, you may be able to claim on the remainder of the cover under the Cancer Care Benefit.

Cover for both Cancer Benefit and Early-Stage Cancer has a 5 year pre-existing condition exclusion, along with a 90 day stand down after your policy start or restart date where we won’t pay any claim for signs, symptoms or diagnosis that occur during that time.

We won’t pay any claims that arise from a pre-existing condition that was present in the five years before your cover started (or restarted). If you increase your cover, the pre-existing condition exclusion will only apply to the increased amount.

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Funeral insurance

Funeral insurance is designed to help cover funeral costs when the person insured dies.

It pays a set amount to help with expenses like funeral services, burial or cremation, and related costs. The money can be used however the family or policy owner chooses.

Funeral insurance pays a lump sum when the person insured dies. Once a claim is accepted, the payment is made to help cover funeral costs.

Some people choose funeral insurance so there’s a dedicated amount set aside for funeral expenses, rather than relying on savings or family members to cover the cost at the time.

It's important to note that over your lifetime, it's possible to pay more in premiums than your total cover amount. You should consider whether Funeral Cover is the best option for your situation, with other possible options being saving or investing.

The cost of funeral insurance varies depending on things like the cover amount and the person insured’s age.

The easiest way to see the cost is to get a quick quote online. You’ll be able to see the price before deciding whether to go ahead.

You can take out Funeral Cover for yourself or for another person, such as your parents, spouse, or friends as long as they meet the eligibility criteria.

People choose funeral insurance for different reasons. This cover provides a dedicated amount so there’s money set aside specifically for funeral related costs.

If the person insured dies or is diagnosed with a terminal illness (as defined in the policy), contact us as soon as you can. We’ll explain the next steps and what information is needed and help guide you through the process. Please note, cover is for accidental death from day one, with full cover for natural causes after two years. If a claim for natural causes is within two years we will refund the premiums paid.

AA Life Insurance Funeral Cover is specifically designed to help cover the costs associated with a funeral. You can get up to $30,000 cover.

AA Life Insurance Life Cover provides a lump sum of up to $1.5 million if the person insured dies or is diagnosed with a terminal illness. It includes an early payment of up to $15,000 (or your full sum insured if you have less than $15,000 of cover) funeral support. 

If you’re suffering financial hardship, involuntary unemployment or bankruptcy (as set out in the policy) and can't reasonably afford your premiums, you can apply to us for the Premium Holiday Benefit. If accepted, your premiums are put on hold for a maximum of six months from the time you tell us in writing, so you don't have to cancel the policy while you get back on your feet. You do NOT need to pay us back. To be eligible for this benefit, you must be under 65 years of age, have had the policy in place for 2 years and have paid all premiums. You can only have one Premium Holiday across the life of your Funeral Cover insurance policy.

You can add a beneficiary as part of the application process for Funeral Cover, or if you'd like to add one later, you can do so by completing the Nominated Beneficiary form online or by getting in contact with us. The beneficiary’s details are loaded against your policy so that any payouts are made to them directly.

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Accidental Death Cover

You can add a beneficiary as part of the application process for Accidental Death Cover, or if you'd like to add one later, you can do so by completing the Nominated Beneficiary form online or by getting in contact with us. The beneficiary’s details are loaded against your policy so that any payouts are made to them directly.

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Why choose AA Life Insurance

 We help New Zealanders take care of what matters, on the road, and in life.

roundel 5% AA Member discount
roundel 99.4% of claims paid out
roundel phone and laptop icon simple online application
roundel with headset icon and New Zealand based support caption

*Provide a valid AA Membership number at time of purchase. Discount applies to the total premium. 

^AA Life Insurance claim acceptance ratio Jan-Dec 2024 for Life, Cancer Care, Funeral, and Accidental Death Cover.   

PZ AA Life

Our insurance partner 

AA Life Insurance policies are distributed by the New Zealand Automobile Association (Incorporated) (AA) and provided and underwritten by Asteron Life Limited. You should consider the appropriate policy wording before making any decisions about any policy you decide to purchase. Terms and Conditions, Limits and Exclusions apply

Financial strength rating 

Asteron Life Limited has been given an  "A+" (Strong) financial strength rating by Fitch Australia Pty Ltd (Fitch), an approved ratings agency.  The scale that this rating forms part of is available for viewing at Asteron Life Limited's New Zealand offices.

Financial advice 

Our website provides general information about our products and services to help you make choices when it comes to protecting the things in life that really matter. The information doesn’t take into account your specific financial situation, needs or goals and is not intended to be financial advice. 

If you'd like to receive financial advice, you can get professional advice from a financial adviser.

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*Provide a valid AA Membership number at time of purchase. Discount applies to the total premium.

The information on this page refers to the currently on sale product.