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Income Protection Insurance

Income protection insurance replaces up to 75% of your income if illness or injury stops you from working, keeping your finances on track while you recover.

What is Income Protection Insurance?

Your income is your most valuable financial asset. If illness or injury prevents you from working, income protection insurance steps in to replace a portion of your earnings — typically up to 75% — for the duration of your claim or until you return to work.

Policies differ in their waiting periods (the time between stopping work and when payments begin), benefit periods (how long payments continue), and whether they cover your own occupation or any occupation. Some policies include rehabilitation benefits to support your return to work.

Self-employed New Zealanders are particularly exposed without income protection, as ACC only covers accidents — not illness. A CompareNow adviser can help you design a policy that bridges that gap and covers your specific situation.

Income protection gap calculator showing after-tax financial impact when you cannot work

Income protection gap

After-tax dollars kept after essential living costs.

Time horizon
Cover
Cause
$85,000
$5,500
2.5%
1 year from now
2 years

Off work for 2 years, starting 1 year from now.

ACC pays nothing for illness, so private income protection carries the load.

Gap at year 10

$138,452

Lowest point reached

-$130,928

Income protection closes

$108,184

Income protection is built to close gaps exactly like this one.

Illustrative only, not a quote or financial advice. The running total is income kept after essential living costs and tax, before any investment growth. NZ tax brackets, ACC and replacement figures are simplified assumptions and vary by situation, policy and insurer. LifeCovered Limited, FSP675171.

Insurers offering income protection insurance

Compare these providers or talk to an adviser to find the best fit.

Talk to a income protection insurance adviser

Get personalised advice on the right policy for your situation. Your choice, at no cost to you.

Compare income protection insuranceCall 0800 25 99 25