Income Protection Insurance

You can apply for income protection if:

• you’re 16 to 55–60 years of age (the maximum entry age varies across insurers)
• you’re employed (either full-time or part-time) or self-employed, and
• you’re a New Zealand citizen, a permanent resident, or have a long-term business visa or a work permit in the country.

Insurers may have other eligibility requirements. Talk to a Policywise adviser to learn more about each insurer’s criteria.

No. Most insurance policies won’t cover high-risk professions such as military, police, prison guards, and coal miners.

Yes, self-employed individuals can apply for income protection cover. Contact us if you wish to get a free quote comparison.

You can insure up to 75% of your annual pre-tax income. But the exact monthly benefit depends on your personal circumstances, average annual income, and your ability to pay the premium. To learn more, schedule a callback with one of our advisers.

Insurers offer different maximum cover amounts, ranging from $8,300+ to $40,000 per month.

Your cover will usually expire when you turn 65 unless your policy allows an extended cover for up to 70 years of age.

The amount of cover you need will depend on your circumstances and financial obligations. Our Policywise advisers can help you calculate the monthly benefit you’ll require if you have to stop working due to a disability.

The waiting period refers to the time you’ll have to wait before your monthly income protection payout starts.

For example, if you stop working due to an injury and you chose an 8-week waiting period when you bought your policy, your monthly payout will start after 8 weeks. If you are able to go back to work within the waiting period, you will not receive any monthly benefit.

Choose the waiting period that suits your needs–it can be 2, 4, 8, 13 weeks, or longer. Pro tip: selecting a longer waiting period can make your premiums more affordable.

When choosing a waiting period, consider:

• how long your emergency fund will last if you are unable to work
• other income sources or savings you can rely on if you have to stop working
• how much paid sick leave your company owes you.

For example, if you have 2 weeks sick leave and your emergency fund can cover you for 6 weeks, you might opt for an 8-week waiting period.

Definitely. Most insurers offer a 2-year, 5-year, or until age 65 or 70 benefit period. The benefit/payment period is the maximum length of time you can receive monthly benefits provided that you continue to meet the claim criteria.

Choosing a shorter benefit period lowers your premium, but this also means that your payouts will stop sooner even if you’re still unable to work. If you choose until age 65 as your benefit period, and you suffer a permanent disability and can no longer work, you will continue to receive monthly payouts until you reach retirement age.

Your income protection premium depends on multiple factors such as your:

• Age & gender
• Health & smoking status
• Occupation & annual income
• Percentage of income you’d like to insure
• Waiting period & payment periode
• Whether you choose level term (you pay a fixed premium) or age-rated payments (your premiums increase as you age).

Contact us to ge a personalised quote comparing income protection cover from New Zealand’s most trusted insurers.

You can pay through direct debit or credit card with options to pay weekly, fortnightly, monthly, quarterly, half-yearly, or yearly.

According to the Inland Revenue Department, you can deduct your income protection premiums if any claimed income insurance payout is taxable.

Yes, IRD generally considers income insurance payouts as income and therefore taxable.

Income protection insurance won’t cover the following:

• Injuries due to self-harm
• Injuries due to criminal activities
• Pregnancy, childbirth, or a miscarriage unless resulting in a significant disability
• Patients who fail to follow recommended medical treatments
• While a person is in prison or home detention.

The policy owner owns the policy. He/she pays the premiums and can make changes on the policy.

The life assured is the person insured under the policy. The life assured cannot alter the policy without the policy owner’s authorisation.

Nothing. Our assistance and consultation sessions are free. The quotes we provide you are the same prices you’ll get if you requested quotes from the insurers.

Redundancy cover isn’t a standard benefit in insurance protection policies.

But some insurers offer an optional redundancy cover. This will provide you with a monthly payout for several months if you are made redundant.

Other insurers give you the option to suspend your cover if you are made redundant. Note that you will not be able to make claims for injuries or illnesses during the suspension period.

No, it won’t pay you a monthly benefit if you’re unable to work due to pregnancy. But insurance protection may cover you if your pregnancy leads to a disability that lasts longer than three months after the end of your pregnancy.

Some insurers may also waive your premiums for a specific period during and after your pregnancy while still keeping your policy in force.

Yes, income protection insurance provides benefits if you can’t work due to a mental health disorder such as depression.

Having a pre-existing medical condition does not disqualify you from getting income protection cover. However, it may affect your premiums or your cover. We recommend speaking with a Policywise adviser so they can give you more information and help you find the right insurance product for your situation.

If you lose your job because an injury or severe illness prevents you from working, you can claim on your income protection insurance. If you lose your job due to other reasons, you cannot use your cover.

Insurers usually offer an option to suspend premiums if keeping up with premium payments becomes difficult while you’re between jobs. However, this usually means that you won’t be able to claim benefits for conditions that occur during the suspension period.

Yes. If you’re in another country for work or leisure, you remain covered.

Yes, you can change your cover to match an increase or reduction in your income and/or financial obligations. Talk to a Policywise adviser to get more information about each insurer’s policies or requirements when adjusting cover amounts.

Insurers give you time to update your premium payments. After the grace period, your policy will be cancelled.

Some insurers offer a premium suspension benefit. This option allows you to suspend your cover temporarily if you need to take leave from work, lose your job, or experience a significant decrease in your income. While you can’t claim benefits for illnesses or injuries that occur during the suspension period, your policy won’t be cancelled and it gives you time to get back on your feet financially.

Yes. Insurers offer a free look period. If you decide to cancel your cover within this period, the insurer will return your premium payments. If you cancel your policy after the free look period, you will no longer receive a refund.

Yes, but we strongly recommend keeping it for your own protection and for your family’s benefit.

If you intend to keep your current income protection cover, we encourage you to be careful about getting a second policy.

This is because the payouts you receive from your first income protection policy (as well as other sources such as ACC or your employer) will be deducted from your benefits under the second policy. In effect, you are paying double for the same cover amount.

Yes. Policywise clients can simply send us an email about these changes and we will take care of updating the insurer for you.

Definitely. Policywise advisers are experts in comparing different insurance products and providers. Just give us the details of your current cover and we’ll provide quotes for policies that match your needs.

Book a call with a Policywise adviser to discuss your options!

If you need to stop working due to an illness or injury, consider filing an income protection claim as one of your top priorities. Call your insurer as soon as possible so they can guide you through the claims process.

Policywise clients can also contact us for prompt, stress-free claim filing assistance.

This depends on whether you are receiving benefits from other sources (also called benefit offsets) due to the same illness or injury. Benefit offsets may include sick pay from your employer, ACC entitlements, or any other income protection policies you may have.

These benefit offsets will be deducted from your income protection benefit. For example, if your monthly income protection benefit is $5,000 and you’re receiving $2,000 from the ACC and $1,000 from your employer, you will receive $2,000 from your income protection cover.

Yes. Income protection pays a benefit if a partial disability significantly impacts your work hours and income.

This depends on the waiting period you selected when you bought income protection. For example, if you choose a 4-week waiting period, your monthly payouts will start after 4 weeks.

You will receive monthly benefits until your chosen payment period ends or you are able to come back to work.

ust send us a message or schedule a callback and one of our insurance experts will contact you at your available date and time.