Policies can cover both short-term and long-term disability, and family support including rehabilitation and return-to-work programs. We can help tailor income protection insurance to meet your needs and budget.
Income protection insurance is designed to replace part of your income if you can’t work due to illness or injury. In New Zealand, most policies cover up to 75% of your usual earnings and continue paying either until you recover or until the chosen benefit period ends. This cover helps you stay on top of everyday expenses like your mortgage, rent, or family bills, giving you financial breathing space while you focus on getting better.
When you take out income protection insurance NZ, you decide how the cover is set up. Every policy has a waiting period, which is the time you need to be off work before payments begin, and a benefit period, which is how long the payments will continue. Common waiting periods are 4, 8, or 13 weeks, while benefit periods might last for two years, five years, or right through to age 65. Payments are adjusted if you’re receiving support from ACC or other sources, so your total cover always reflects your real needs.
This type of cover is most valuable if your household relies heavily on your income. It’s especially important if you have a mortgage or other financial commitments, if you support dependants, or if you’re self-employed without the safety net of extended sick leave. For many people, the best income protection insurance NZ provides peace of mind, knowing that if the unexpected happens, your lifestyle and financial obligations can still be managed.
Pre-existing conditions are usually excluded, along with injuries from intentional self-harm or absences due to normal pregnancy and childbirth unless there are complications. Standard income protection does not cover redundancy or unemployment unless you add specific redundancy cover. Understanding these exclusions upfront is key, and an adviser can help you review policy wording so there are no surprises later.
There are several major health and life insurance companies in New Zealand that offer income protection, including AIA, Asteron Life, Chubb Life, Fidelity Life, nib and Partners Life. While the core structure of these policies is similar, each insurer has its own definitions, waiting period options, and added benefits. Working with an insurance adviser gives you the advantage of comparing products across multiple providers and helps ensure you choose the best income protection insurance NZ for your personal circumstances.
