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Income Protection

The need-to-knows when replacing an insurance policy

April 2024
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As consumers we can all be impulsive, easily persuaded and quick to make decisions – often without being properly informed.

Whether it’s life, income protection or critical illness, replacing your insurance policy is no exception to this. It can be all too easy to rush into what you think on the surface is a better plan for you. However, choosing to replace an insurance policy can be risky, and there are a number of important things to consider before changing your current policy:


Things to think about...

  • Does the new or the existing policy have better terms and conditions for you? Which has a wider range of cover? Would replacing your policy leave you worse or better off? For example, your existing policy may cover different types of conditions than your new policy, and vice versa eg some critical illness  policies cover different conditions.
  • Changes in your health, lifestyle, occupation or age may mean you aren’t covered under your new policy for benefits or events that may be covered under your existing policy. These changes could also make a new policy more expensive. For example, if you’ve developed a new medical condition since taking out your original policy, applying for a new policy might mean your premiums are higher or you risk not being accepted.
  • Does your new policy have a stand-down period? If yes, this means you may not be covered for certain medical conditions or events for a period of time from the start date of your new policy. For example, if you’ve had your existing policy for a while, you will have likely passed the stand-down period. This means if something happened you would be covered by the terms of your policy. If you take out a new policy and something unexpected happens shortly after, you risk not being covered as you may be in a new stand-down period.
  • If you keep your existing cover and take on additional cover under a new policy, you may pay more in premiums by having two policies in place.
  • It’s important to check through both policies to make sure you are happy with everything first before considering whether to cancel any existing cover.

If you have trouble finding this kind of information yourself, your current, and potential new insurance provider will be able to help you. An Insurance Adviser is also a good person to go to for helpful advice.

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Your insurance is underwritten by Chubb Life Insurance New Zealand Limited (Chubb Life). Chubb Life has an A (Excellent) financial strength rating given by A.M. Best Company Inc. A summary of the rating scale is: A++, A+ Superior | A, A- Excellent | B++, B+ Good | B, B- Fair | C++, C+ Marginal | C, C- Weak | D Poor | E Under Regulatory Supervision | F In Liquidation | S Suspended. For the full rating scale and more rating information visit