Premium
The amount you pay the insurer (monthly, fortnightly, or annually) to keep cover in force.
Definition
Premium is the cost of cover. NZ life insurance premium depends on age, sex, smoker status, sum insured, term, occupation class, and underwriting health history. Premium structures vary — stepped premiums rise with age, level premiums stay flatter, hybrid models cap the increase.
Related topic comparisons
See also
- Stepped premium — A premium that recalculates each year and rises with your age.
- Level premium — A premium that stays at the same rate as you age (until a defined cap age or sum-insured event).
- Underwriting — The insurer’s assessment of your application before the policy is issued.
Not personalised financial advice. Definitions are editorial framings of how the term is used across NZ life cover. Your specific policy wording is the authoritative source.