AI is changing the way we gather information and seek advice, including when we’re making big life decisions. From meal plans and budgeting tools to home workouts and school homework help, platforms like ChatGPT, Gemini and CoPilot are now regular parts of everyday Kiwi life.
So it makes sense that people are using AI to learn about financial products, including life insurance. But how much should you rely on AI when it comes to something as important and personal as protecting your family’s future? Let’s take a closer look.
Where AI gets it right
AI is a great starting point - especially if you’re completely new to life insurance.
When asked things like “Do I actually need life insurance in NZ?” or “How much does life insurance cost in NZ?”, AI usually gives a clear, simple explanation. It’s good at:
- Explaining common insurance terms (jargon!) like premiums, beneficiaries, or underwriting
- Outlining the main types of cover available - like life insurance, income protection, and critical conditions
- Highlighting key life stages when cover might be worth considering, such as starting a family, taking on a mortgage, or becoming self-employed
- Giving rough estimates of what cover might cost, based on age or lifestyle factors
- Providing a general overview of how life insurance works
AI has become a quick and easy way to get information quickly and get familiar with the basics. You can get quick answers to your questions without digging through multiple websites or wading through jargon.
Where AI Doesn’t Work
Even ChatGPT comes with a warning that says, ‘ChatGPT can make mistakes. Check important info.’ It’s important to remember that AI doesn't know you and it can’t see the whole picture. It doesn’t know your age, health, mortgage, or family situation, or what's important to you - all the things that really matter when choosing cover.
It will only answer what you ask it, and only knows what it reads from websites. This means, for example, unless you ask how ACC fits in with life cover or income protection, the AI won’t take it into consideration.
It also favours big over little. NZ is a small country, so you have to ask very specific questions to get answers that are specific to NZ, and you have to ask about specifically smaller companies because the AI just won't know so much about them.
Finally while it might say it can compare policies, it can’t provide personalised quotes or give an accurate side-by-side comparison of what different insurers offer. You could miss key details like exclusions, optional add-ons, or what conditions you’re really be covered for.
It’s a useful starting point - but not the place to make your final decision.
So how do you choose life insurance?
Start with the basics - and AI can help with that!. But when it comes to making a real decision, it’s worth comparing not just the price, but the full picture.
Tools like Quashed are a great starting point. They show a range of providers and premiums to help you understand what’s out there. But don’t stop at the numbers - look at what each policy actually includes.
At Pinnacle Life, our Life Cover includes benefits that can make a real difference in hard times - like an advanced funeral payment, financial planning support, a child funeral benefit, and access to grief counselling. These extras aren’t always included in cheaper policies, but they can offer genuine support when you need it most.
—
At the end of the day, life insurance is personal - and what provider you choose is personal too . Pinnacle Life understands Kiwi families and what really matters when protecting your future. We combine clear, straightforward policies with extra benefits that go beyond just a payout. We also make it easy to get a quote and apply online, with no fuss and no pressure. And if you ever want to chat or have questions, our friendly team is just a call away.
So, use AI to get started, but when it’s time to choose, trust a provider that puts Kiwis first. That’s Pinnacle Life.
