KiwiSaver vs Life Insurance Trade-off
Spend the same dollar on KiwiSaver or term life — what wins?
NZ$
%
After-fees, after-tax rate of return.
Get this from a life insurer's quote tool — typical 35-year-old non-smoker: $4,000–$6,000 per $1/mo of level term.
If invested in KiwiSaver
$41,103.37
vs $500,000.00 of life cover for the same monthly cost
| Same $100.00/mo into KiwiSaver | $41,103.37 |
|---|---|
| Same $100.00/mo into level life | $500,000.00 of cover |
Apples and oranges intentionally — the right answer is almost always both, weighted by family stage and existing wealth.
About this calculator
A common mistake: thinking insurance and investment are interchangeable. They're not. Use this calculator to see what an extra $50 / month buys as KiwiSaver future value vs a level-term life sum insured.
- KiwiSaver builds you wealth slowly — useful for retirement.
- Life cover protects your family if you die before that wealth is built — cover need is highest when net worth is lowest.
- The right answer is "both, in different proportions over time", not "one or the other".
Frequently asked questions
When can I drop life cover?
When your net worth + KiwiSaver are large enough that your dependants are financially fine without you. Typical age: 55–65 for level-term policies.
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Calculator NZ provides general information only. For decisions with significant financial, medical or legal consequence please consult a qualified professional.