Moving to a new country is an exciting adventure—especially when it’s a place as welcoming and diverse as New Zealand. However, alongside navigating residency applications, finding accommodation, and adjusting to cultural differences, new migrants should consider how they’ll protect their families financially. New Zealand’s public healthcare system and ACC (Accident Compensation Corporation) are robust, but they don’t cover all risks.
This article explores Life Insurance and Personal Risk Protection options—such as Total and Permanent Disablement (TPD) and Trauma Cover—specifically for new migrants settling in Aotearoa New Zealand. As a platform partnered with trusted and registered financial advisers, we'll guide you through the key considerations, from eligibility criteria to policy structures that safeguard your future in Aotearoa.
Why Life Insurance Matters for New Migrants
Family and Financial Obligations
Many migrants arrive with family or plan to bring them over soon. Securing life insurance ensures loved ones are financially supported if something happens to you—particularly if you’re the primary breadwinner or have significant expenses like a mortgage.
Limited Local Support Network
New arrivals may have fewer local contacts and extended family members in New Zealand. In a crisis, having a life insurance payout can help with funeral costs, repatriation, or day-to-day bills during a difficult time.
Cost of Living
According to Stats NZ, the cost of living in urban areas like Auckland and Wellington can be relatively high. If you unexpectedly passed away or were unable to work, a life insurance policy can help your family maintain financial stability in an already challenging environment.
Key takeaway: Life insurance provides peace of mind, covering the financial gaps that can arise from an unexpected death or illness, especially crucial when you have fewer local support systems to rely on.
Understanding New Zealand's Public Safety Nets
Public Healthcare System
New Zealand’s public healthcare is partially funded by taxes and subsidises many medical treatments. However, eligibility depends on visa status, and not all temporary visa holders have full access to public healthcare. Even if you’re eligible, you may face wait times for non-urgent treatments.
Learn more about public healthcare eligibility here.
Accident Compensation Corporation (ACC)
ACC provides cover for accidental injuries, whether they happen at work, home, or on the road. But:
It doesn’t cover illnesses like cancer or heart disease.
Compensation is typically up to 80% of your income if you can’t work due to an accident.
Non-residents may be covered in certain accident scenarios but should verify their eligibility.
Key takeaway: ACC is valuable but not comprehensive—it only covers accidents, leaving illnesses and other risks unprotected.
Learn more about ACC here.
Types of Personal Risk Protection for New Migrants
Life insurance
What it covers:
Pays a lump sum to your beneficiaries if you pass away or are diagnosed with a terminal illness.
Why it matters for migrants:
Debt Relief: If you’ve taken on a mortgage or personal loans upon arrival, life insurance ensures these debts aren’t passed on to grieving family members.
Repatriation Costs: Some policies can help fund the cost of returning your body to your home country if that aligns with your family’s wishes.
Security for Dependent Visas: Many migrants bring spouses or children on dependent visas. Having life insurance can ensure they are financially stable even if your visa or sponsorship ceases due to your death.
Total and Permanent Disablement (TPD)
What it covers:
Provides a lump sum if you become permanently disabled and are unable to work again in your own or any suitable occupation (depending on the policy).
Why it matters for migrants:
Future Employment Uncertainty: If you’re new to the country, losing the ability to work due to a disability can be even more destabilising. TPD funds can cover living expenses, rehabilitation, or even relocation costs back to your home country if you choose.
Limited Local Benefits: Some disability benefits in New Zealand may require a specific residency status or waiting period.
Trauma Cover (Critical Illness)
What it covers:
Pays a lump sum on the diagnosis of a specified critical illness (e.g., cancer, heart attack, stroke).
Why it matters for migrants:
Private Healthcare Options: Trauma cover can help pay for private treatment, reducing wait times. This is critical if you don’t have full public healthcare entitlements yet.
Supporting Family Abroad: If you need your overseas family members to visit or you need to travel home for specialised treatment, the payout can help cover these extra costs.
Income Protection
What it covers:
A monthly benefit if you’re unable to work due to sickness or injury (not necessarily accident-related).
Why it matters for migrants:
Maintaining Visa Requirements: If your visa depends on your job, losing your ability to work might jeopardize your status. Income protection can cushion the financial blow while you navigate potential visa changes or alternative work arrangements.
Eligibility and Underwriting for New Migrants
Visa Status:
Permanent residents, citizens, and certain work visa holders may have an easier time securing local life insurance.
Temporary visa holders (e.g., visitors, working holiday) often face additional conditions or may only be offered limited coverage.
Health Checks:
Insurers typically require medical underwriting. Any pre-existing conditions or lack of local medical history could affect premiums or coverage exclusions.
Proof of Income and Residency:
You may need to provide official documents like bank statements, employment letters, or residency visas to demonstrate financial stability and ongoing ties to New Zealand.
Key takeaway: Organise a meeting with one of our trusted financial advisers here to understand which insurers have flexible underwriting criteria that accommodate your visa type and unique background.
Common Myths and Misconceptions
“ACC Covers Everything”
ACC covers only accidental injuries. Illnesses or chronic conditions are excluded.
“I’ll Buy Insurance Later”
Insurance premiums typically rise with age. Delaying can mean higher costs or even denial if you develop health issues.“I Have No Dependents, So I Don’t Need Life Insurance”
Even if you’re single or have no children, your debts and funeral costs may burden your extended family overseas.
How to Choose the Right Cover
Assess Your Needs
Consider debts, dependents, and visa status.
Identify whether you need lump-sum protection (Life/TPD/Trauma) or monthly cover (Income Protection).
Compare Policies
Look at premiums, benefit amounts, waiting periods, and exclusions.
Some insurers cater specifically to expatriates and new migrants, offering more flexible terms.
Consult a Financial Adviser
Work with an adviser who specialises in Personal Risk insurance to find the best fit.
Review your policy annually or whenever your residency status changes.
Conclusion
Relocating to New Zealand brings numerous opportunities—along with important financial considerations. ACC and the public healthcare system provide a safety net but leave significant gaps, especially regarding illnesses and permanent disability. Securing Life Insurance, TPD, and Trauma Cover (and optionally Income Protection) helps ensure you and your loved ones remain financially secure, even when faced with unexpected challenges.
If you’re a new migrant looking to protect what matters most, consulting a qualified financial adviser can help you understand your coverage options, eligibility criteria, and best-fit insurer. By taking a proactive approach to personal risk protection, you’ll enjoy the peace of mind that comes from knowing your family’s future in New Zealand is secure—no matter what life throws your way.
Take a look at Immigration New Zealand for eligibility and residency requirements.
Click here to organise a free of charge from one of our trusted, New Zealand registered advisers.
