Compare income protection insurance from NZ life insurers. See how policies replace up to 75% of your income if illness or injury prevents you from working. Compare waiting periods, benefit periods, agreed value vs indemnity and provider features side-by-side.
A popular choice for Kiwis looking for affordable cover without the middleman. Pinnacle Life's direct-to-consumer approach keeps premiums low - get a quote below.
Income protection insurance pays a regular benefit if you cannot work due to illness or injury, helping you cover everyday living costs while you recover.
Income protection is a type of life insurance - not general insurance. It replaces a portion of your income (typically up to 75% of your pre-tax earnings) with regular payments if a health condition or injury prevents you from working. Policies are underwritten based on your age, health, occupation and smoking status.
In New Zealand, ACC covers accidents but does not cover illness. If you develop cancer, have a heart attack, or experience a serious mental health condition, ACC will not replace your lost income. Income protection insurance fills this gap.
Most income protection policies in NZ are arranged through financial advisers, who can help match cover to your situation and assist with underwriting and claims. Pinnacle Life is a notable exception, offering direct-to-consumer applications.
Income protection policies vary by how the benefit is calculated, how long payments last and what definition of disability applies.
Your benefit amount is locked in when the policy starts, based on your income at that time. Even if your income drops later, the agreed benefit remains the same at claim time.
Your benefit is based on your actual income at the time of claim or in the preceding 12 months. Premiums are typically lower, but the payout may be less if your income has dropped.
You are considered disabled if you cannot perform the duties of your own specific occupation. This is the more comprehensive definition and is commonly chosen by professionals and specialists.
You are only considered disabled if you cannot work in any occupation suited to your education, training and experience. This is a narrower definition and is less commonly chosen.
These providers are commonly compared by New Zealanders looking for income protection cover.
AIA is one of the most commonly encountered income protection providers in New Zealand, distributed through financial advisers and also available through ASB. It may suit those looking for comprehensive cover with flexible waiting periods and benefit options.
NZ-focused life insurer known for flexible income protection wording and strong adviser relationships.
Now owned by Resolution Life Australasia (since February 2025), Asteron Life has a long track record in NZ life insurance and income protection.
NZ-owned life insurer offering income protection through advisers and via Westpac's banking channel.
The main direct-to-consumer option for income protection in NZ, allowing you to apply online without a financial adviser.
The right policy depends on your income, occupation, savings and how long you could manage without earnings.
If you rely on a salary, consider how long your employer would continue paying you if you were off sick. Many NZ employees have limited sick leave, making income protection worth considering for longer absences.
Without an employer to fall back on, self-employed workers may face immediate income loss if unable to work. A shorter waiting period and agreed value policy are commonly considered.
Higher earners and specialists may want own-occupation cover to ensure the policy pays out if they cannot perform their specific role, even if they could do other work.
A side-by-side look at common NZ income protection providers including life insurers and bank-distributed options.
| Provider | Best Known For | How Bought | Best For |
|---|---|---|---|
| AIA | Comprehensive IP with strong adviser network | Financial adviser | Full-featured cover |
| Partners Life | Flexible benefit options and wording | Financial adviser | Tailored cover |
| Asteron Life | Established life insurer with IP options | Financial adviser | Adviser-led cover |
| Fidelity Life | NZ-owned life insurer with IP range | Financial adviser / Westpac | NZ-owned option |
| Pinnacle Life | Direct-to-consumer IP cover | Direct online | Buy without an adviser |
| ASB (via AIA) | Bank-distributed income protection | Bank / branch | Existing ASB customers |
| Westpac (via Fidelity Life) | Bank-distributed income protection | Bank / branch | Existing Westpac customers |
| ANZ (via Chubb) | Bank-distributed income protection | Bank / branch | Existing ANZ customers |
Disclaimer: Features, premiums and availability vary by age, occupation, health and underwriting. Bank-distributed options may have more limited features than full adviser-placed policies. Always verify current wording and availability directly with the provider. If you spot something incorrect, please let us know.
Understanding what is and isn't covered helps avoid surprises at claim time.
| Scenario | Usually Covered | Usually Not Covered |
|---|---|---|
| Illness preventing work | Cancer, heart disease, stroke, serious infections and other medical conditions | Pre-existing conditions not disclosed or excluded at underwriting |
| Injury preventing work | Injuries that stop you working, including those ACC partially covers | Self-inflicted injuries or injuries from excluded activities |
| Mental health conditions | Many policies now include mental health cover with some limitations | Some policies limit mental health claims to 2 years or exclude certain conditions |
| Partial disability | Some policies pay a proportional benefit if you can work part-time during recovery | Policies without a partial or graduated benefit clause |
| Redundancy or job loss | Not covered - this is not redundancy insurance | Voluntary resignation, redundancy, business closure |
Income protection policies have exclusions that can affect whether a claim is accepted. Review these carefully before applying.
Conditions you had before applying may be excluded or have a stand-down period. Full disclosure at application is essential.
Intentional self-harm is commonly excluded, although many NZ insurers have improved mental health provisions.
Claims arising from war, insurrection or acts of terrorism are typically excluded.
Illness or injury arising from criminal acts you commit may not be covered.
Some extreme sports, aviation activities or occupations may be excluded or require additional loading.
No benefits are paid during the waiting period. This is not an exclusion per se, but it is an important gap to understand.
Income protection pricing is highly individual. These are the main factors that drive the cost.
Premiums increase with age. Applying younger generally means lower initial premiums.
Desk-based workers usually pay less than manual or high-risk occupations. Insurers group jobs into occupation classes.
Past or current health conditions can lead to exclusions, premium loadings or declines.
Smokers typically pay significantly higher premiums than non-smokers.
Longer waiting periods (e.g. 13 weeks vs 4 weeks) reduce premiums because the insurer pays out less often.
A benefit period to age 65 costs more than a 2-year or 5-year benefit period.
Higher monthly benefits mean higher premiums. Most policies cap cover at 75% of pre-tax income.
Agreed value policies generally cost more than indemnity because the benefit is guaranteed regardless of income changes.
Own occupation cover typically costs more than any occupation because it has a broader claim trigger.
Indicative monthly premium ranges for income protection in NZ. Actual pricing depends heavily on individual circumstances.
Disclaimer: These figures are indicative ranges only, not quotes. Actual premiums depend on your age, occupation, health, smoking status, benefit amount, waiting period, benefit period and insurer. Always obtain a personalised quote from the provider or your financial adviser.
Reducing premiums is possible without necessarily sacrificing essential cover.
If you have sick leave, savings or an emergency fund, a 13-week waiting period can be significantly cheaper than 4 weeks.
A 2-year or 5-year benefit period costs less than cover to age 65, though it provides less long-term protection.
If your income is stable and you can provide proof at claim time, indemnity cover is generally cheaper.
Stepped premiums start lower but increase each year. Level premiums cost more initially but may be cheaper over the life of the policy.
Ensure you are not over-insured. Cover your essential expenses rather than your full income to keep premiums manageable.
Premiums are based on age and health at application. Applying earlier generally locks in lower rates and avoids exclusions for conditions that develop later.
Switching life insurance is more complex than switching general insurance. Take care before cancelling existing cover.
Always have new cover in place and accepted before cancelling your current policy. Health changes since your original application could mean exclusions or decline on a new policy.
Check that the new policy definition (own vs any occupation), benefit period, waiting period and exclusions are at least as good as your current cover.
If your health has changed, a new insurer may apply exclusions or loadings that your current policy does not have.
A financial adviser can compare replacement options and identify any gaps or disadvantages of switching.
Understanding the claims process before you need it can help ensure a smoother experience.
Contact your insurer or financial adviser as soon as you know you may need to claim. Early notification helps start the process.
Your insurer will provide a claim form. You will typically need to provide medical evidence from your doctor.
Benefits do not start immediately. You must be continuously unable to work for the full waiting period before payments begin.
For longer claims, the insurer may request periodic medical updates to confirm your continued inability to work.
If your claim is declined or you disagree with the outcome, follow the insurer's complaints process. If unresolved, IFSO may be able to help with eligible disputes.
New Zealand has unique features that affect how income protection insurance works.
ACC provides cover for personal injuries caused by accidents, but it does not cover illness. Income protection fills this critical gap for conditions like cancer, heart disease and mental health.
Most income protection in NZ is sold through licensed financial advisers. This differs from general insurance which is more commonly bought directly.
Tax treatment depends on the policy type. For indemnity policies, premiums are generally deductible and benefits are taxable. For agreed value policies, premiums are generally not deductible and benefits are generally not taxable. Check with IRD or a tax professional for your situation.
Being unable to work also means you stop contributing to KiwiSaver. Some policies offer a KiwiSaver contribution benefit as an optional extra.
Life insurers and financial advisers are regulated by the Financial Markets Authority, which sets conduct and licensing standards.
IFSO offers a free complaints pathway for eligible disputes after the provider's internal complaints process has been exhausted.
Income protection policy documents can be lengthy. These are the key sections to focus on.
This is the most important clause. Check whether the policy uses own occupation, any occupation, or a combination that changes after a certain period (e.g. own occupation for 2 years, then any occupation).
Understand whether your benefit is agreed value or indemnity, what counts as income, and whether bonuses, commissions or business profits are included.
Check for any exclusions or stand-down periods that apply to health conditions you disclosed at application.
Some policies limit mental health claims to a shorter benefit period (e.g. 2 years) or have specific conditions. Check the wording carefully.
Answers to common questions New Zealanders ask about income protection.
Key income protection terms explained in plain language.
Browse income protection brands commonly compared in New Zealand. Each review looks at product focus, distribution model and what the brand is known for.
See which income protection options may suit your occupation, income and budget. Compare providers, benefit periods and waiting periods before you apply.