Scheme of Arrangement – Now Binding
The High Court of New Zealand has approved the Scheme of Arrangement between Foundation Life (NZ) Limited and its eligible policyholders. The decision was made on 2 July 2025, following a policyholder vote where over 96% voted in favour.
This means the Scheme is now legally binding, and affected policyholders must take action.
What happens now
If you are an Eligible Policyholder living in New Zealand, you must now choose your preferred Scheme option by 5.00pm on 14 August 2025.
From 7 July, you’ll receive a Choice Letter in the post. This will include instructions and the necessary forms to complete your selection.
Webinar: Make Informed Decisions with your Foundation Life Policy
Join us for a practical, easy-to-understand webinar designed to help you make informed decisions with confidence.
Our expert speakers will guide you through the key details of your scheme, explain your options in plain language, and cover the legal implications you need to be aware of.
We will cover:
- Scheme Summary & What Happens Next
- Options Explained in Simple Terms
- Legal Implications: Trusts, Wills & Ownership
Date: Wednesday 16th July
Time: 7:00 - 7:45 pm
Can't make this time? No worries, you can register and we will make sure you receive a recording of the webinar to watch in your own time.
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Your Scheme Options
If you are a New Zealand resident, you can now choose one of the following:
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Replacement life cover from Chubb Life — at least 5% higher than your current Death Benefit, with no more premiums to pay
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A cash payout, at least 5% more than your surrender value (capped at the Death Benefit)
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A combination of both — one-third/two-thirds or two-thirds/one-third life cover and cash
Overseas policyholders can only receive the cash option, unless they transfer ownership to a New Zealand resident before the cut-off.
Book Your Free Consultation
Talk to us. We’ll help you make sense of it.
Our team will walk you through your options and help you decide what makes the most sense for your needs — whether that’s replacement cover, a cash payout, or a combination.
What This Means for You
These policies were created decades ago. The Scheme was developed in response to regulatory, investment, and economic changes — with the aim of delivering better long-term value and flexibility to policyholders.
Now that the Scheme has been approved, it’s time to choose the outcome that works best for you.
How Lifetime Can Help
We’re not Foundation Life, but many of our clients are affected. Our role is to help you:
- Understand the Scheme in plain English
- Clarify your options and what they mean for your personal situation
- Support you through the decision process
We are offering free, no-obligation consultations for affected policyholders.