Income insurance (also called income protection) provides a monthly payment if you’re unable to work due to illness or injury — helping you keep up with essential expenses while you recover.
Most people rely heavily on their regular paycheck to cover things like rent or mortgage payments, groceries, utilities, and more. If an unexpected health issue stops you from working, income protection can help replace a portion of your lost earnings so your financial life doesn’t fall apart while you’re focusing on your health.
At Coverage Connected, we connect you with trusted insurance brokers who can compare policies from a range of New Zealand insurers. Once matched, your broker will walk you through the process — including answering questions about your health, occupation, and income. These details help insurers determine your cover options and premiums.
Once your application is accepted, you’ll pay premiums at regular intervals — typically monthly — and be covered in case you become unable to earn due to medical reasons.
If you’re signed off work due to a medical condition or accident, and your claim is accepted, your insurer will pay you a portion of your usual income — usually between 50% and 75% — until you’re well enough to return to work or the benefit period ends (whichever comes first).
The payments are designed to help cover your living costs so you don’t need to dip into savings or take on debt to make ends meet during your recovery.
Income protection covers loss of income when you’re medically unable to work due to illness or injury. It doesn’t usually cover job loss due to redundancy or layoffs (though some policies offer limited cover for specific situations).
Policies typically include:
• Monthly income replacement (up to a capped percentage of your earnings)
• Options for different wait periods (how long you’re off work before payments begin)
• Choice of benefit periods (how long payments will continue — e.g., 2 years, 5 years, or until age 65)
Some policies also offer built-in or optional extras like:
• Rehabilitation support
• Partial disability benefits
• Waiver of premium while on claim
Yes — income insurance is often flexible and can be customised to suit your situation. Your broker can help you consider add-ons such as:
• Recovery benefits: Extra support for rehab or retraining if you can’t return to your original job.
• Family support benefits: Covering childcare or household help while you’re recovering.
• Indexed benefits: Payments that increase with inflation over time.
Brokers can also help you bundle income protection with life or trauma cover for a more complete safety net.
Most working adults in New Zealand can apply — including citizens, permanent residents, and people on valid work visas (usually two years or longer). Eligibility and pricing depend on your job, income, age, and medical history.
Disclaimer: The information in this article is for general educational purposes only. Insurance products vary in features and benefits, and your needs may be unique. Coverage Connected connects you with licensed brokers who provide tailored, professional advice based on your situation.
