Income Protection Insurance
Income Protection Insurance replaces your salary when you're unable to work due to illness or injury. Protect your family's lifestyle and financial security during periods when you can't earn.
Most New Zealanders live paycheck to paycheck. Without income protection, a serious illness or injury can quickly lead to financial hardship. Income protection insurance ensures your family can continue paying bills, keeping your home, and maintaining their quality of life while you recover.
Why Choose Income Protection Insurance?
- Replace up to 75% of your salary - ensure your family's lifestyle continues during recovery
- Coverage for accident, illness, and injury - comprehensive protection for all medical situations
- Flexible benefit periods - choose coverage that lasts until age 65, 2 years, or 1 year of disability
- NZ-based support team - fast claims processing and local understanding of market conditions
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What's Covered Under Income Protection Insurance
Illness Cover
Whether it's flu, cancer, heart disease, or any medical condition preventing you from work, income protection replaces your salary throughout recovery.
Injury Cover
Accidents happen. Whether from a workplace incident, car accident, or sports injury, we replace your income while you recover and rehabilitate.
Mental Health Cover
Depression, anxiety, and other mental health conditions are covered the same as physical illness. Get the support you need without stigma.
Surgery & Recovery
Planned surgery and post-operative recovery time is covered. Receive your salary replacement while you heal and return to full capacity.
Why Income Protection Insurance Matters in New Zealand
The Reality of Income Loss
Statistics show that one in three New Zealanders will experience a period of disability lasting more than 90 days during their working life. Most people aren't prepared for what happens when that income stops unexpectedly.
Without income protection, families face difficult choices: deplete savings, sell assets, reduce living standards, or accumulate debt. Income protection insurance prevents these scenarios by replacing your income during periods when you're medically unable to work.
More Than Just Mortgages
While income protection helps with mortgages and loans, it covers all your living expenses. Your family needs to eat, pay utilities, cover medical costs, maintain transport, and continue school fees. Income protection ensures these essentials are covered.
Unlike specific loan protections, income protection covers your entire lifestyle needs. This comprehensive approach means your family maintains their standard of living and you can focus entirely on recovery without financial stress.
Government Support Isn't Enough
ACC covers work injuries, but not illnesses. The Supported Living Payment exists but typically comes with long wait times and provides basic support only. New Zealand doesn't have comprehensive income replacement for all disability situations.
Income protection insurance fills this gap by providing up to 75% of your normal salary, ensuring you and your family aren't forced to survive on minimal government assistance during a medical crisis.
Key Benefits of Income Protection Insurance
Maintain Your Lifestyle
Replace up to 75% of your salary, ensuring your family can maintain their standard of living while you recover from illness or injury.
Flexible Benefit Periods
Choose how long you want coverage: until age 65, 2 years of disability, or 1 year - select the option that matches your needs.
Covers All Occupations
Whether you're a builder, nurse, teacher, accountant, or tradesperson, income protection is available tailored to your occupation.
Fast Claim Assessment
Claims are reviewed quickly and you'll receive benefits within days of approval. No lengthy waiting periods between payments.
Focus on Recovery
With bills covered, you can concentrate entirely on your health and rehabilitation without financial stress or worry.
Protection for All Illnesses
All illnesses and injuries are covered equally - from common conditions to serious diseases. No limitations on type of disability.
Tax-Free Benefits
Income protection benefits are paid tax-free, meaning you receive the full replacement amount without deductions or complications.
Works Alongside ACC
Income protection complements ACC cover. You can receive both benefits, ensuring comprehensive income replacement for any disability.
Income Protection Insurance FAQ
What's the difference between waiting period and benefit period?▼
The waiting period (usually 30, 60, or 90 days) is how long after disability starts before benefits begin. The benefit period is how long you receive benefits - could be 1 year, 2 years, or until age 65. Shorter waiting periods cost more but provide faster benefit access.
Can I get income protection if I'm self-employed?▼
Yes, self-employed individuals can get income protection. Underwriting requires evidence of income through tax returns or business accounts. Self-employed people sometimes find waiting periods longer, but comprehensive coverage is available.
Is income protection the same as disability insurance?▼
They're similar but different. Income protection replaces lost income from disability. Disability insurance is a lump sum payment for permanent disability. Many people have both - income protection for temporary disability, disability insurance for permanent situations.
How are benefits calculated?▼
Benefits are typically calculated at 60-75% of your pre-disability income, subject to underwriting limits. The exact amount depends on your salary, occupation, and the maximum benefit amount you applied for when getting coverage.
Does income protection cover redundancy?▼
Standard income protection covers disability from illness and injury, not redundancy. For redundancy cover, you need separate job loss insurance. Some people have both policies to cover all income loss scenarios.
Can I claim for partial disability?▼
Yes, some policies include partial disability cover. If you can return to work part-time before full recovery, you receive a proportional benefit. This encourages early return-to-work while still providing income support.
Who Should Get Income Protection Insurance?
Employed Professionals
If your family depends on your salary to maintain their lifestyle, income protection is essential to prevent financial crisis during illness or injury.
Primary Earners
If you're the sole or main income earner, your family relies entirely on your ability to work. Protection ensures they survive hardship.
Mortgage Holders
If you carry a mortgage, income protection ensures you can continue paying while disabled, preventing home loss or financial stress.
Young Families
Young families with dependent children and limited savings need income protection to survive periods of parental disability.
Related Insurance Guides
Payment Protection Insurance
Protect your loan repayments if you can't work due to illness, injury, or job loss.
Mortgage Protection Insurance
Ensure your mortgage is covered if you become unable to work.
Redundancy Insurance
Keep your loan repayments covered if you're made redundant.
Loan Repayment Insurance
Cover your regular loan repayments during unexpected life events.
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Protect Your Family's Income
Get Income Protection Insurance in 2 minutes. Replace up to 75% of your salary if you cannot work. Affordable premiums, no broker fees, fast approval.
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