A small number of KiwiSaver providers include insurance cover with membership or sell insurance to their members. Some of this cover is free with membership and some is a separate policy you apply for. This page sets out what the providers’ own documents say, who pays for the cover, and what to check.
Which Providers Offer KiwiSaver Insurance?
Not all KiwiSaver providers offer insurance. Providers whose own documents describe insurance cover for members include:
Providers listed alphabetically:
- Booster KiwiSaver: free accidental death cover for eligible members, and life insurance it sells to its members
- NZ Funds: free member contribution cover for employees aged 18 to 65, paid for by NZ Funds
Provider offerings change over time, so your provider’s current documents are the place to check availability.
Free Cover Included With Membership
Booster: accidental death cover
Booster’s accidental death cover document says (Booster, Accidental Death Cover):
- Who is covered: members under the age of eligibility for NZ Super (currently 65, when KiwiSaver can be withdrawn), with no part of their investment in the Default Saver Fund, who are subject to Booster’s standard member fee
- What it pays: if death is solely the result of an accident (not a single catastrophic event), the estate receives between $10,000 and $100,000 for a contributing member aged 18 or over, depending on how many consecutive years they have contributed and their balance, or $2,000 for a member under 18 or not contributing
- Who pays: Booster pays the premium
- Switching funds: moving any part of your savings into the Default Saver Fund ends the cover
NZ Funds: member contribution cover
NZ Funds’ other material information document says that, from 1 April 2023, NZ Funds (with Partners Life) provides free member contribution cover to scheme members who are employees aged 18 to 65 (NZ Funds KiwiSaver Scheme, Other Material Information). It covers employee contributions for up to six months if you can’t work because of illness or injury, subject to eligibility criteria, and the premium is paid from NZ Funds’ own funds. It is not life or trauma cover.
Insurance Sold to Members
Booster also sells life insurance to its KiwiSaver members (Booster, Super Simple Life Insurance FAQs):
- Who can apply: current Booster KiwiSaver members aged 18 to 50 who meet its residency conditions
- Cover: up to $200,000 bought online, after an online health and lifestyle assessment
- Premiums: based on the cover, your age and gender, and can be higher for smokers or health conditions; paid by direct debit or internet banking
- When cover ends: if you cancel it, stop paying premiums, or reach the policy anniversary after age 65
This is a separate policy with its own premium. None of the provider documents cited on this page describe premiums being taken from a KiwiSaver balance.
KiwiSaver-Linked Cover and Standalone Cover
| Free cover with membership | Policy sold to members | Standalone life or trauma policy | |
|---|---|---|---|
| Example | Booster accidental death cover; NZ Funds member contribution cover | Booster life insurance | Any insurer |
| Premium paid by | The provider | You, by direct debit or internet banking | You |
| What it covers | Set by the provider’s terms | Chosen when you apply, within the product’s limits | Chosen when you apply |
| Where the terms are | The provider’s cover document | The policy documents | The policy documents |
Premiums for a policy you pay for depend on factors such as age and health, so compare the same amount of cover when you look at more than one option.
What to Check in Your Provider’s Documents
- Is the cover free with membership, or a policy you pay for separately?
- What exactly is covered (accidental death only, contributions while you can’t work, death from any cause)?
- Who is eligible (age, employment, fund choice)?
- What are the exclusions?
- When does the cover end, including if you switch funds or leave the scheme?
Cancelling or Not Taking Up the Cover
Cover a provider includes for free has no premium to stop, while insurance you applied for is a separate policy. If you don’t want a policy you applied for:
- Contact the insurer to cancel it (Booster’s life insurance can be cancelled within 30 days for a full refund of premiums; after that you can still cancel, but premiums paid are not refunded)
- Ask the insurer to confirm the cancellation in writing