Income Protection Insurance NZ

What is Income Protection Insurance?

Income protection insurance (also known as salary continuation or disability income insurance) provides a regular monthly benefit if you are unable to work due to illness or injury. This essential cover ensures you can continue to meet your financial commitments - including mortgage payments, living expenses, and business costs - even when you cannot earn an income.

While ACC provides some coverage for work-related injuries, it does not cover illness or non-work injuries. Income protection fills this crucial gap, giving you peace of mind that your finances are protected regardless of what happens to your health.

What Does It Cover?

• Monthly benefit payments (up to 75% of income)
• Illness and injury cover (24/7, anywhere)
• Partial disability benefits
• Rehabilitation and return to work support
• Cover until retirement age
• Tax-deductible premiums (for business owners)

Who Needs Income Protection?

Income protection is essential for anyone who relies on their income to meet financial commitments:

• • Self-employed professionals and contractors
• • Business owners who depend on their own income
• • Employees without adequate sick leave
• • Anyone with a mortgage or financial dependents
• • Tradies and high-risk occupation workers

Key Features to Consider

• • Waiting period: Time before benefits start (30, 60, or 90 days)
• • Benefit period: How long payments continue (2 years, 5 years, or to age 65)
• • Indemnity vs agreed value: How benefit is calculated
• • Own occupation vs any occupation: Definition of disability

Typical Costs

Income protection costs vary based on your age, occupation, health, and selected features. Typical costs start from:

• • Basic cover (30-day waiting, 2-year benefit): From $40/month
• • Standard cover (60-day waiting, 5-year benefit): From $60/month
• • Comprehensive cover (to age 65): From $100/month