Income Protection Cover

At a glance:
  • Your ability to earn an income is your most important asset
  • If a disability prevents you from working, have you protected your earning power? This policy provides a replacement income of up to 75% of your pre-disability earnings.
  • The policy comes with many important benefits at no additional cost. You can also add one or more optional benefits for which you will pay an additional premium.
  • We aim to help you get “back on your feet” as fast as possible, so this policy includes a range of recovery and rehabilitation benefits.
Why you need it:
The financial consequences of a disability or extended illness could be devastating for your lifestyle and those that depend on you. An average income earner will earn over $1.4 million through their working life. A prolonged absence from work or a return to work in a reduced capacity could have a severe impact on your future financial security.
Two variations of cover:
Indemnity value
Up to 75% of your gross annual income can be insured if you select this benefit.
  • If you are disabled we will pay the monthly benefit less other income until the period of disablement ends, the benefit period expires, you reach age 65 (unless the benefit period is to age 70), or you die. We do not pay a monthly benefit during the waiting period.
  • For the first 6 months (less the waiting period) of any claim, the benefit will be based on the specified monthly benefit less other income.
  • The monthly benefit applied for must be substantiated at either application time or claim time.
  • After 6 months, the amount of the benefit will be the lesser of the specified monthly benefit or 75% of your pre-disability earnings less other income at the time of the claim.
Agreed value
Up to 55% of your gross annual income averaged over the last three years can be insured if you select this option.
  • We will pay the monthly benefit less other income until the period of disablement ends, the benefit period expires, when you reach age 65 (unless the benefit period is to age 70), or you die.
  • We do not pay a monthly benefit during the waiting period.
  • Proof of income must be provided at application time.
Standard features:
Partial advance payment
We will pay 50% of the first month’s monthly benefit after the end of the waiting period. Conditions apply.
Benefit payment period
The available benefit periods are: 2 years, 5 years, to age 65 or to age 70.
Waiting period
You can select the period for which you are prepared to self-insure. We offer seven waiting periods: 2 weeks, 4 weeks, 8 weeks, 13 weeks, 26 weeks or 104 weeks.
Partial disability benefit
Where you have been totally disabled for at least 14 continuous days, and subsequently can work part-time but with a reduction in earnings, a partial benefit may be payable.
Family member support benefit
If you are confined to bed, this provides financial support for an immediate family member who provides care and whose own income ceases as a result.
Hospitalisation/nursing care benefit
This provides additional financial support for bed care during the waiting period for up to 90 days.
Rehabilitation benefit
This is payable in addition to the monthly benefit if you undertake an approved rehabilitation programme for the purpose of retraining or re-education.
Recovery support benefit
This is payable in addition to the monthly benefit, to assist in recovery and rehabilitation costs such as buying a wheelchair, prosthetic devices, and house and car modifications.
Waiver of premium benefit
Premiums due are waived during a claim and also during the waiting period.
Death benefit
A lump sum of three times the monthly benefit is payable if you die while on a claim.
Recurring claim benefit
The waiting period is waived on claims which result from a relapse or recurrence of the same or related illness within 12 months of returning to work.
Waiver of waiting period
The waiting period for a new unrelated claim is waived in certain circumstances.
Benefits can still be paid even though you are unemployed, though the definition of disability changes.
Specific injury benefit
A benefit for listed specific injuries (see list below), payable whether you are working or not, with no offsets.
Claims escalation
While on a claim, your benefit will be linked to the Consumer Price Index (CPI) and adjusted every quarter.
Relocation benefit
This may cover the cost of economy airfare back to New Zealand if disabled whilst overseas (maximum $5,000).
Future insurability
This may allow you to increase the monthly benefit by up to 10% without further medical evidence.
Replacement benefit
If you are self-employed at claim time you may be able to choose to employ a replacement and claim the cost of that person rather than receive the disablement benefit.
Specified medical condition benefit
If you suffer one of the specified trauma conditions we will pay you the monthly benefit for a minimum period of six months, whether you are working or not. Specified medical conditions – angioplasty – triple vessel, aorta surgery, cancer, cardiomyopathy, cerebrovascular accident (stroke), chronic renal (kidney) failure, coronary artery bypass surgery, heart valve surgery, major organ transplant, myocardial infarction (heart attack), paralysis, severe burns
Optional benefits
Inflation-proofing To ensure your benefit keeps pace with inflation, you can choose to have your cover increase each year in line with the Consumer Price Index, regardless of health.
Back/stress limitation
If you limit the benefit period for a mental disorder or back claim to 2 years, you will qualify for a premium reduction of up to 20%.
Extended benefit
This option allows your benefits to continue if you have been disabled for at least three months prior to your 65th birthday and you are unable to perform two or more activities of daily living.
Booster benefit
This option increases your benefit by one third during the first three months of your claim.
Retirement protection benefit
This option provides for continued payment of you KiwiSaver employee contributions to your KiwiSaver scheme via the IRD.
Specific injury means:
The payment period
Paralysis (diplegia, hemiplegia, paraplegia, Quadriplegia, tetraplegia) 60 months
Loss of:
Both feet or both hands or sight of both eyes 24 months
Any combination of two of the following:
A hand, a foot, sight in one eye
One leg or one arm
One foot or one hand or sight in one eye
Thumb and index finger of the same hand
24 months
18 months
12 months
6 months
Fracture of:
Leg above the knee (femur), pelvis
Ankle, heel
Upper arm, shoulder bone, elbow
Forearm, collarbone
Skull, jaw
90 days
60 days
60 days
60 days
60 days
45 days
30 days
30 days