What is the difference between indemnity insurance and agreed value cover? Don’t worry we get asked this question a lot. Knowing which type of income protection may suit you can be difficult as it depends on many factors such as whether your income is likely to remain stable or fluctuate over time, or whether you are employed or self-employed. The best place to start is to ensure that you have an adviser who understands your circumstances or that you take the time to understand the differences yourself.

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Income Protection insurance generally has two types of cover from which you can select when applying for your cover; indemnity or agreed value. Indemnity cover is based on 75% of your pre-disability income (up to your selected maximum) and any benefit you receive is tax assessable. The downside to indemnity cover is that there is the need to prove loss of income at claim time and a degree of uncertainty about the value of the potential benefit an insurer may end up paying – not what you need at claim time! Given this, is it usually not recommend that someone who is self-employed take cover under an indemnity income protection product.

By comparison, an agreed value benefit offers the insured certainty as the value of any future claim is agreed upon with the insurer at the time of application and any benefit payable is not tax assessable. However, this also means that the proportion of income you can cover is less, usually up to 62.5% of your income at the time of applying, which is great for those with fluctuating income levels, such as the self-employed.

If you would like advice about what’s best for your situation, we can connect you with an experienced adviser – understanding the complexities that go along with Income Protection means they can advise you about benefits that will work for you.

Important: All information on this site is of a general nature only. When you compare or complete the assessment online, we will connect you with an advisor who can give you advice at no charge. All advisers who are authorised to use this site, for their marketing purposes, are authorised financial advisers. A full list of advisers and what they can advise on is listed here under our terms & conditions of this site usage.

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Based on 211 reviews
Quick and easy, actually listen to what I wanted and didn’t try and push anything else on to me
Well knowledgeable and prompt when responding to queries
At first I was skeptical but after doing a little reasearch on The Mortgage and Insurance Shop, there was nothing but positive reviews.Blake really went above and beyond to provide me with as many costs/quotes that suited my financial situation. He provided all the information I needed and explained everything, he made sure I was covered in all the areas I needed and provided great support. He's super knowledgeable and very efficient.I highly recommend Blake, he's amazing!
Blake really helped me understand how the Insurance scene works in New Zealand. The service was prompt and to the point. Would absolutely recommend him to all who need to make informed choices.
Hayley Evans is highly recommended broker, very professional communication excellent Hayley was able to help what I wanted I would recommend Hayley to others. My only regret was I did not do this sooner. Talahiva Riggs
Very helpful and knowledgeable
Easy to deal with and got the right insurance, thanks Hayley
Nicole was a great help and had lots of knowledge.I did not feel rushed and was given options, that at the end of the day was my decision.Very happy with how everything worked out and highly recommend!
Great service and follow up 💯
Hayley was professional and accommodating to everything we requested. She helped with multiple revisions to our insurance quotes and was easy to get hold of and quick to respond. It's great having that personal assistance when dealing with multiple policies etc. Thanks
Awesome service! Highly recommended! Caring and friendly, made every step so easy and stressfree! Go Hayley!!!!! Thanks for all your help!!!!
Blake was very knowledgeable and easy to deal with, definitely recommended!
Hayley was a breeze and lovely to deal with highly recomend
Being a super busy person I had tried to get life insurance in the past and put it on the back burner because of how much time it took up. My partner got a hold of these guys and I had Hayley contact me. Hayley was absolutely amazing to work with. She would call me and tell me in layman’s terms what I needed to do. Thank you heaps Hayley!!!
An excellent company! All throughout the process, excellent customer support. The group goes above and above at every stage and is incredibly knowledgable. They are something I wholeheartedly recommend.

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