AIA New Zealand has introduced a new life insurance product offering customers fixed premiums and lifelong coverage, responding to what the company describes as growing demand for long-term financial certainty.
The product, called Cover for Life, pays a lump sum on the policyholder’s death. Customers select their level of cover and a premium payment term – to age 65, 70, or 80 – after which premiums cease but coverage continues for life. Premiums are fixed for the duration of the term and do not increase with age.
Mr Alex Kühnast, AIA NZ’s chief product and marketing officer, said the product was shaped by feedback from advisers and customers.
“People want reliable, lifelong protection. They want something that can help them leave a meaningful legacy, cover end-of-life costs, or simply give them lasting peace of mind,” he said. “We’ve listened closely to advisers and customers, and we believe Cover for Life reflects what they’ve been asking for.”
The product also includes a feature allowing customers to stop premium payments after completing at least half of their chosen term, with coverage continuing at a reduced amount.
“A defining feature of the product is the ability to stop paying premiums once at least half the term has been paid for, and the policy will continue with a reduced cover amount,” he said. “This gives customers a practical way to flex and maintain protection as their circumstances and cover needs change.”
AIA NZ said the product was designed to complement existing standard life cover rather than replace it, with Cover for Life intended to address needs later in life such as funeral expenses, inheritance planning, and support for dependants.
Mr Kühnast cited demographic changes as a key driver behind the offering, reported Insurance Business.