Income protection helps you keep up with rent or mortgage, utilities, groceries and childcare if you’re off work. Income protection can cover both illness and injury and can work alongside ACC (your benefit may be offset). It’s especially valuable if you’re self-employed, a contractor, or have limited sick leave.

Most New Zealand residents aged roughly 16–60 can apply (some insurers accept up to 65). You typically need to be employed or self-employed and working at least part-time (about 15+ hours a week).

Commonly up to 75% of your regular pre-tax income, subject to insurer caps (often up to $30,000 per month). Choose a benefit that realistically covers essential expenses after factoring in any sick leave or other support you have.

Age, gender, occupation risk, smoking status, and health history all matter. Policy settings also drive price: shorter waiting periods, higher benefit amounts, and longer benefit periods cost more.

Often yes—if the benefit you would receive is taxable income. If benefits were non-taxable, premiums typically aren’t deductible. Always confirm your situation with an accountant or the IRD.

The waiting period is the amount of time you must be unable to work before payments begin. Options commonly range from 2 to 104 weeks. Shorter waits mean faster pay-outs but higher premiums; longer waits reduce premiums but require savings or sick leave to bridge the gap.

You choose a benefit period when you take out your policy—commonly 2 years, 5 years, or until age 65 or 70. Longer benefit periods cost more.

If the same illness or injury prevents you from working again within a typical reinstatement window (typically around 12 months), payments can resume without a new waiting period. Please refer to your policy wording for the exact timeframe.

Usually not. Most policies include a Waiver of Premium while you’re receiving benefit payments.

If you stop paying, your policy will lapse and cover end. When you first take out a policy, most NZ life/health insurers offer a 14-day free-look period from when you receive your policy documents—during that time you can cancel for a full refund if no claim has been made.

Cover generally includes illnesses and injuries that stop you from working. Common exclusions include self-inflicted injuries, criminal acts, war, and non-disclosed pre-existing conditions, though complications that prevent you from working may be covered.

Sometimes, yes. If you’re partially disabled and only able to work reduced hours or earn less, many policies offer a partial/relapse or partial disability benefit to help make up the shortfall.

Other income—such as ACC, sick-leave pay, or payments from another policy—may be offset so you don’t receive more than your insured percentage.

Many policies cover mental-health conditions (e.g., depression or anxiety) provided you disclose your history. Some insurers may apply exclusions or set specific limits (e.g., a maximum 24-month benefit period) for mental-health claims—check the policy.

No—income protection covers illness and injury, not redundancy. Some policies include a redundancy premium-waiver feature that keeps your cover in force for a short period without premiums if you’re made redundant.

ACC covers accidental injuries and typically pays up to a portion of your income. Income protection can cover both illness and injury and may be offset by any ACC payments—working together to provide broader protection.