Key Takeaways
Choosing a life insurance adviser in New Zealand is about more than finding someone to arrange a policy. A good adviser works under a licensed financial advice provider, follows the Code of Professional Conduct, explains how they are paid, and puts your needs ahead of their own.
- Check the adviser's financial advice provider on the Financial Service Providers Register before you share personal details.
- Ask which insurers the adviser can compare and what the advice covers.
- Expect plain-language disclosure about fees, commissions and conflicts of interest.
- Compare policy definitions, exclusions and premium structures, not just the monthly cost.
- Answer application questions fully and honestly, and review your cover when life changes.
What a life insurance adviser does
A life insurance adviser helps you work out what protection you need and recommends cover that fits. Good advice starts with questions about your finances, family and plans, not with a product. The aim is to help you make an informed decision, including whether cover is worth having at all.
Assessing your needs
An adviser will usually ask about your income, spending, debts, dependants, savings and existing cover. They use that picture to estimate the financial gap your family could face if you died or could no longer work. The recommendation should explain the assumptions behind the proposed cover amount and any shortfall that remains.
Adviser, broker or insurer representative
These labels can overlap. An adviser who works with several insurers can compare policies across the market, while someone who works for one insurer will focus on that insurer's products. Neither label tells you how wide the choice really is, so ask directly which insurers the adviser can recommend.
Support after the policy starts
Some advisers offer ongoing reviews and help at claim time; others step back once the policy is in place. Find out what follow-up is included, how to contact the adviser if your circumstances change, and what help is available if you or your family need to make a claim.
Check the adviser's licence and obligations
Financial advice in New Zealand is regulated under the Financial Markets Conduct Act 2013. The current regime began on 15 March 2021 and, since full licensing took effect on 16 March 2023, anyone giving financial advice to retail clients must hold a financial advice provider licence from the Financial Markets Authority (FMA), or be an authorised body operating under someone else's licence.
Search the Financial Service Providers Register
Ask for the name of the financial advice provider responsible for the advice, then search for that provider and the individual adviser on the Financial Service Providers Register. The register shows whether a provider is licensed or operating as an authorised body, and lists the advisers linked to it. Keep a note of what you checked and compare it with the adviser's disclosure documents.
The Code of Professional Conduct
Every financial adviser must follow the Code of Professional Conduct for Financial Advice Services. According to the FMA's guide to working with a financial adviser, the Code requires advisers to:
- treat clients fairly and act with integrity
- give suitable advice and make sure you understand it
- protect your personal information
- have the competence, knowledge and skill for the advice they give
Advisers must also give priority to your interests where there is a conflict of interest. This duty applies whether the adviser is paid by fees, commission or both.
Complaints and dispute resolution
A licensed provider must have an internal complaints process and belong to an approved dispute resolution scheme. The adviser should tell you how to complain and which scheme they belong to. That scheme is free for you to use if a complaint cannot be resolved directly.
Work out what cover you may need
The right amount of cover depends on what you want the policy to do and who relies on your income. Start with your actual commitments rather than a round number, then subtract existing cover and savings you would use.
Debts, dependants and income
For life cover, add up debts that would remain, such as your mortgage, the cost of supporting dependants and how long your household might need help replacing your income. Include a buffer for costs that are easy to overlook. Our guide to how much life insurance you need walks through the calculation step by step.
Related types of cover
Life cover is often considered alongside other personal insurance. Each type responds to a different event:
- Income protection may replace part of your income if illness or injury stops you working.
- Trauma cover pays a lump sum if you are diagnosed with a specified serious condition.
- Total and permanent disability cover pays a lump sum if you are unlikely ever to work again, as defined in the policy.
- Mortgage protection is designed to help with mortgage repayments or the loan balance.
ACC covers accidents but not illness, which is one reason people look at private cover. If income protection is your main concern, read our article on choosing an income protection insurance adviser.
Existing and workplace cover
Before adding cover, gather details of policies you already hold and any workplace insurance. Check who owns each policy, who is insured, the benefit amount, and whether the cover ends if you leave your job. Think about likely changes too, such as a new mortgage, a child or a change in work.
Questions to ask before you choose
A short first conversation can tell you a lot about an adviser's service. Good questions include:
- Which financial advice provider are you working under, and is the provider licensed?
- Which insurers and policy types can you recommend?
- How are you paid, and will I pay a fee?
- What information do you need before making a recommendation?
- What help do you offer after the policy starts and at claim time?
The answers should be clear and specific, with no pressure to decide on the spot. The FMA says personal recommendations should be in writing and match your goals, and advisers should explain the scope of their service. If something is unclear, ask for the explanation in writing.
Fees, commissions and conflicts of interest
Advice has a cost even when you do not receive an invoice. Many life insurance advisers are paid commission by the insurer whose policy you take out; some charge a fee; some use both.
How the adviser is paid
Ask whether you pay directly, whether the adviser receives commission, and whether any fee changes if you go ahead. If the service has no direct cost to you, ask how it is funded. Advice providers must disclose this information in a clear, concise and effective way, free of charge.
How commission can affect advice
Commission can create an incentive to recommend a particular policy or to replace an existing one. That does not make the advice unsuitable, but the adviser must disclose the conflict, explain how they manage it, and put your interests first. Ask what safeguards are in place.
Replacing an existing policy
If an adviser suggests replacing cover you already hold, ask for the reasons in writing. A new policy may not cover health conditions you have developed since taking out the original policy, and new stand-down or waiting periods may apply. Do not cancel existing cover until the new policy is confirmed.
Compare policy recommendations
A recommendation is easier to judge when you can see what was compared and why. Look beyond the headline benefit and premium.
| What to compare | Questions to ask |
|---|---|
| Cover amount | What need is this amount meant to meet? |
| Premium type | Is the premium stepped or level, and how could the premium change? |
| Policy term | When does cover start and end? |
| Definitions and exclusions | What events are covered, and what is excluded? |
| Adviser payment | Does the recommendation affect how the adviser is paid? |
Exclusions and definitions
The policy wording sets out when a benefit is payable and when a benefit is not payable. Definitions can differ between insurers, so a familiar label does not mean identical cover. Ask the adviser to point out relevant exclusions and read the wording yourself.
Stepped and level premiums
A stepped premium is recalculated each year, usually rising as you get older. A level premium is based on your age when the policy starts and is designed to stay more stable for a set period, though the insurer can still change rates across the board. Ask for an illustration of how premiums may change and consider the likely cost over the whole time you expect to hold the cover.
The application and underwriting process
Applying for life cover means sharing personal and health information so the insurer can assess the risk. An adviser can explain the steps, but the insurer decides whether to offer cover and on what terms.
Answer every question honestly
You must answer the insurer's questions accurately and completely. If you are unsure whether something is relevant, disclose the information and ask your adviser. Incomplete or inaccurate answers can lead to a claim being declined or the policy being cancelled.
Underwriting outcomes
The insurer may offer cover on standard terms, add an exclusion or loading, ask for more information, postpone a decision or decline. Read any special terms carefully and ask what they mean for the protection you expected before you accept.
Check the policy and plan reviews
Once the policy is issued, check the insured person, owner, cover amount, premium and start date against what you agreed. Store the policy wording and advice documents somewhere safe, and review your cover after a major change in work, family, debt or health.
How SHARE - The Advisory can help
SHARE - The Advisory is an authorised body under the financial advice provider licence held by SHARE NZ Services Limited (FSP683711). Our advisers compare cover across a range of insurers, explain how we are paid, and help with reviews and claims. Learn more about our life insurance advice.
We also bring mortgage and KiwiSaver advice together in one team, so your cover can be considered alongside your wider plans. Contact us to arrange a conversation.
Conclusion
Choosing a life insurance adviser in New Zealand starts with checking that the adviser works under a licensed provider and understanding how they are paid. From there, look for advice that starts with your needs, compares policy wording as carefully as price, and is explained in writing.
Take time to understand the final terms before you accept cover, and review your policy as your life changes. This article is general information only and not personalised advice.
Frequently Asked Questions
How do I check if a financial adviser is licensed in NZ?
Search the Financial Service Providers Register for the adviser and the financial advice provider they work under. The register shows whether the provider holds an FMA licence or is an authorised body under another provider's licence.
Do life insurance advisers charge a fee in NZ?
Many are paid commission by the insurer, some charge a fee and some use both. The adviser must tell you how they are paid and about any conflicts of interest.
Is it better to use an adviser or go direct to an insurer?
That depends on whether you want help comparing options and understanding policy terms. An adviser who works with several insurers can compare policies, while going direct limits you to one insurer's products.
What should I bring to my first meeting with a life insurance adviser?
Bring details of your income, debts, dependants, existing policies, workplace cover and main financial goals. An overview is enough to start the conversation.
What is the Code of Professional Conduct for financial advisers?
The Code sets the standards every financial adviser in New Zealand must meet, including treating clients fairly, acting with integrity, giving suitable advice and having the right competence and skill.
How often should I review my life insurance?
Review your cover when your circumstances change, such as buying a home, having a child, changing jobs or approaching retirement. Many people also find a regular check every year or two useful.