Life Savings: Ways you can save and the benefits of AA Life Cover

Life Insurance can help make the hardest time a little easier for those you love. On the whole, Kiwis are underinsured1 – and the AA Life Insurance team want to do something about that. Our goal is to help you understand why life insurance is important and provide affordable, easy-to-get cover.

Here's a few things you could consider which may help you save on your Life Insurance and some benefits that AA Life Insurance offers with our Life Cover. 


Life insurance 4Setting your amount of cover 

The amount of cover you have in place will influence your premiums. It’s important to have enough cover in place to protect your lifestyle and ensure you and your family will be looked after, but you don’t want to be paying for insurance protection you might not need.

Since your level of cover can be based on things like your income or mortgage repayments, it’s not always easy to figure out. We always recommend using any online tools available, or bringing it up with an adviser, who can help you work through your options, so you know you’ve got the appropriate level of cover in place to meet your needs.  


Insurance coverageSaving with AA Life Insurance discounts

We are always looking for ways to improve our products and make them more affordable. With this in mind, you may qualify for the following discounts;

  • There's a 5% discount available for AA Members on new policies. This is available when you provide your valid AA Membership number on application.

  • If you take out more than one different type of policy at the same time you'll receive a further 5% multi-policy discount. This applies to our Life Cover, Funeral Cover, Accidental Death Cover and Cancer Care policies. 

  • For Joint Funeral Cover*, you'll qualify for a 20% discount


Life insurance 3AA Life Insurance Life Cover Benefits

Below is a helpful summary of the benefits across our Life Cover and an explanation of how you can tailor it to your current and future needs.

  • Funeral Support Benefit $15,000 can be paid as soon as we receive notification of death to help your family with immediate costs**. This benefit helps your loved ones deal with the immediate expenses associated with a death and can ease the burden at this difficult time. When the time comes, we’ll deduct this amount from any later payment of the death benefit.

  • Premium Freeze Benefit Freeze your premiums so they stay the same each year instead of increasing with age. If you use this benefit, your cover amount will be reduced to the level that your fixed premium is able to buy. It’s important to know that this amount of cover will be based on your current age, gender, smoking status and health status at the time of application. You can also unfreeze your premiums from the next policy anniversary.

  • Death or Terminal Illness Benefit You will receive a benefit equal to your cover amount if you die or are diagnosed with a terminal illness. A “Terminal Illness” is one which, in the opinion of an approved doctor, will result in death within 12 months. The benefit will be the cover amount that applies at the date of death or diagnosis.

  • Life Event Increase Benefit Increase your cover amount up to 25% without providing updated medical information. We understand that certain life events can have a huge impact and it may require changes in your life Insurance. You can do this before you turn 60 if you’re getting married, getting divorced or are having children, if there’s a change in salary, if your spouse dies, if you’re taking out a home loan or becoming a carer.

This is a summary only. There are terms and conditions that apply to all benefits. Please refer to your policy documentation.


  1. Fennel, J. (2022) "High number of New Zealanders don't have enough insurance" NZ Adviser. Available at:

The information in this article has been compiled from various sources and is intended to be factual information only. Full details of policy terms and conditions are available from AA Life Insurance or your financial adviser. For advice on product suitability, please contact your financial adviser. While we take reasonable steps to ensure that the information contained in this article is accurate and up-to-date, it is subject to change without notice. NZAA and its related companies does/do not accept any responsibility or liability in connection with your use of or reliance on this article.
* 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.
** Please refer to the policy wording for more information.

Our insurance partner

AA Life Insurance policies are brought to you by the New Zealand Automobile Association Incorporated and underwritten by Asteron Life Limited.

Financial strength rating

Asteron Life Limited has been given an A+ financial strength rating by Standard & Poor’s.

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 registered financial adviser.