Income Protection

Income protection is a monthly benefit that is payable to you In the event of illness or injury. You’ll be able to claim up to 75% of your pre-disability income to cover your monthly costs so you’ll be able to focus on getting better.

Income protection and redundancy cover are completely different. Most insurers do not offer redundancy insurance. Redundancy insurance pays you a benefit or a lump sum if your role is made redundant. Income protection does not cover redundancy however income protection will cover you if you are unable to work due to illness or injury.

The best question to ask yourself here is 'Do I have dependents or anyone who relies on my income?' If you were to pass away, would those who rely on your income be impacted negatively? Would those who depend on you be able to sustain the lifestyle they currently have? These are good questions to ask yourself, if your answer is 'yes' to either of these questions you might consider getting income protection insurance.

In New Zealand we are lucky enough to have ACC, however ACC does not cover illness, it only covers injury. If you are sick and cannot work ACC will not help you, also ACC will only cover a maximum of 80% of your pay. Most people need close to 100% of their income to sustain their lifestyles and families. With rising costs it makes sense to protect against injury and illness and protect your ability to earn an income. Income protection is there to help make sure you can focus on recovering without the financial burden.