Purchasing Life Insurance Online
Life Insurance FAQs
What is Life Insurance?
A lump sum payment (sum insured) in the event of death by accident or illness. Also if the insured person is terminally ill and has 12 months or less to live.
Who is eligible to apply?
In most cases persons between the ages of 16 and 74 who are NZ citizens, permanent residents, or in some instances if you are waiting for residency status.
Are there any policy exclusions?
The only standard exclusion is suicide within the first 13 months of the policy commencing. Insurers may decline cover in some instances for non-disclosure on the application. eg: failing to declare a history of illness, or participation in high-risk activities.
What information is required for an online application?
• Personal details - your contact details eg name, address, phone and lifestyle eg smoker, height, weight and occupation
• Insurance History - details of any existing insurance or applications made
• Medical Information - details of your health history and any medical conditions you may have or have had, contact details of your GP/medical practice
• Activities/Residency - details about your NZ residency status and any hazardous hobbies or pursuits you may have
How long does an application take?
On average fifteen minutes with additional time for joint applications or if there are any health issues or you are involved in any hazardous occupations, pursuits or hobbies.
Will I need a medical examination?
Not normally unless there are certain height to weight or medical history criteria, or if the sum insured applied for is greater than certain limits specified by the insurer in the following table eg:
51-55 > $750,000
56-60 > $500,000
(These limits are guidelines only and may differ between insurers)
61+ A medical examination is generally required but can differ between insurers.
How is DiscountLife paid?
We are paid by the insurer you select to arrange your insurance. There is no cost to you.
Other General FAQs
How are life insurance premiums calculated?
Premiums are based on your current age, sex, smoker/non smoker and the sum insured selected. Health status and hazardous pursuits/hobbies can also affect the premium charged.
Do premiums increase?
Premiums increase annually on the policy anniversary as you get older. They also increase slightly more if indexation is selected which is offered by the insurer on the policy anniversary. This is where the sum insured is increased to cover inflation. Indexation is optional.
There is another premium option known as a level premium whereby the premium is set at the same rate for a number of years and will not increase unless you have selected indexation which is the only part that will increase. A level premium is more expensive than the above option in the first few years but later in life averages out and can be cheaper overall in the long run if the policy is kept in force. If you would like to consider a level premium option, please contact us on 0800 505 200
When does the first premium commence?
Once the policy has been accepted and issued. When applying you can select the day of the month you wish the premium deduction to be made by either a direct debit or credit card account.
Are there any costs to have the policy issued?
Any medical related expenses incurred by the insurer are covered. Certain declared medical conditions will require the insurer to follow up with additional medical information, they may request a medical with your usual GP, or obtain medical notes from your GP, or have a nurse carry out a medical assessment, or require a blood test to help them assess the risk.
Can you change your sum insured?
If you wish to increase your cover you will need to apply online and complete an application as each increase needs to be assessed by the insurer. You are able to reduce your sum insured by confirming your request in writing to us.
Can the policy be cancelled or voided?
The only time a policy can be cancelled or lapsed by an insurer once it has been issued is as a result of non payment of premium whereby three monthly premiums have been missed. A policy can be voided if certain medical information comes to light during the term of the policy which was not declared on the original application and it was found that this information would have affected the insurers decision to offer cover in the first instance.
Can the policy be cancelled if the cover is not required?
A policy can be cancelled by yourself at any time by confirmation in writing of the request.
Is there any difference between the life insured and policy owner?
The policy owner is the person to whom any proceeds are payable to. You can both be the owner and life insured of your policy, or you may elect another person who is not a life insured on your policy to be the owner.
An owner can be changed at any time by you notifying us and we will arrange completion of the forms to change the ownership.
What documentation is received?
Once the policy has been accepted and issued a policy document with your unique policy number will be posted to you. You will then receive annual anniversary letters from your insurer. Review letters will also be sent from time to time.
Changes in circumstances?
If you change your physical, postal, email address or bank account/credit card accounts please notify us.
What is the term of my policy?
Your policy will cease as a result of you deciding to cancel it or non payment of premiums. Life policies generally don't have expiry dates and will run to age 100 if so required.