What is Income Protection?

Income Protection Insurance in New Zealand: A Financial Lifeline for Unexpected Setbacks

Income Protection Insurance provides a monthly payment to replace a portion of your income if you’re unable to work due to illness or injury. In New Zealand, it typically covers up to 75% of your pre-tax income, with maximums up to $30,000 per month, depending on the provider. This financial support helps you maintain your lifestyle, covering essentials like rent, mortgage, or childcare costs while you focus on recovery.

Why It Matters in New Zealand

With around 55,000 Kiwis unable to work for three months or more each year due to illness, and average household spending at $1,349 weekly (Statistics NZ, 2019), government benefits like Jobseeker Support ($391/week for couples with children) often fall short. Income Protection Insurance bridges this gap, offering peace of mind and financial stability during tough times.

This can prove pivotal as we’re heavily reliant on our income to get by, and without it, even for a short time, can put us in a really bad spot.

Typically, Income Protection types can vary so it’s important to get some advice on this.

How it works?

You may be off work due to an accident, illness or an injury (creating a loss in income).

After the nominated wait period, your monthly benefit payments would begin and continue until the end of your payment period, or you get better.