Income protection in NZ is almost exclusively adviser-distributed — the most comprehensive policies are not available direct. Here’s how the major providers compare.
Partners Life has the best policy wording for income protection — broadest own-occupation definition, most flexible benefit structures. AIA NZ is competitive on price with Vitality benefits. Asteron Life is worth quoting for price competitiveness. All three are adviser-only. For self-employed and contractors, the own-occupation definition and agreed value are the most critical features to compare.
The Most Important Feature: Own Occupation vs Any Occupation
Before comparing providers, understand the definition of disability used:
Own occupation: You’re paid if you can’t perform your specific occupation. A surgeon who loses fine motor control can’t perform surgery — even if they could theoretically work in another field. This triggers an own-occupation policy. Best protection.
Any occupation: You’re paid only if you’re unable to work in any occupation suited to your education and experience. The surgeon above would not qualify — they could work as a medical consultant. Much harder to claim under.
Verdict: Always seek own-occupation definitions. Partners Life, AIA, and Asteron Life all offer own-occupation definitions on their premier income protection products.
NZ Income Protection Provider Comparison
| Provider | Own occupation | Agreed value | To-age-65 option | Adviser-only |
|---|---|---|---|---|
| Partners Life | ✅ | ✅ | ✅ | ✅ |
| AIA NZ | ✅ | ✅ | ✅ | ✅ |
| Asteron Life | ✅ | ✅ | ✅ | ✅ |
| Fidelity Life | ✅ | ✅ | ✅ | ✅ |
| Cigna NZ (direct) | Partial | ❌ | Limited | ❌ |
Partners Life — Best Policy Wording
Best for: Those who want the most comprehensive income protection with the broadest definitions and fewest exclusions.
Partners Life consistently receives the highest ratings from independent policy analysts (such as Quotemonster’s quality ratings) for income protection policy quality.
Standout features:
- Best own-occupation definitions in NZ
- Agreed value (income at time of application — not time of claim)
- Proportionate/partial disability benefit
- Booster benefit (additional lump sum for long-term total disablement)
- Inflation-indexed benefit (increases annually with CPI)
- Waiver of premium while on claim
- Rehabilitation support benefit
Premiums: Typically at the higher end — you pay for quality. But when you’re claiming $7,000/month for 5 years, policy quality matters enormously.
AIA NZ — Best for Active Members with Vitality
Best for: Those who will actively engage with the AIA Vitality programme; price-sensitive buyers who want strong (not best) policy quality.
AIA’s income protection is strong — not quite Partners Life’s standard on policy wording, but competitive and paired with meaningful Vitality rewards.
Standout features:
- Competitive pricing at most age and occupation categories
- Vitality premium discounts (up to 10–15% for healthy behaviours)
- Own-occupation definition (with some nuances — check with adviser)
- Agreed value available
- Multi-product discounts when bundled with AIA life and health insurance
Asteron Life — Best for Price Competitiveness
Best for: Price-sensitive buyers who want strong-but-not-top policy quality through an adviser.
Asteron Life (Suncorp NZ) is often one of the most competitive on income protection premiums, particularly for lower-risk occupations. Policy quality is good — not quite Partners Life — but solid.
Standout features:
- Competitive pricing across most age and occupation groups
- Own-occupation definition
- Strong financial backing (Suncorp Group)
- Good range of waiting periods and benefit periods
Fidelity Life — Best NZ-Owned Option
Best for: Those who prefer NZ-owned providers, mid-market price and quality balance.
Fidelity Life is a solid mid-market option — NZ-owned, good claims record, competitive pricing. Not the leader on policy quality or price at any specific point, but a reliable all-rounder.
What to Ask Your Adviser
When comparing income protection quotes, ask:
- What is the exact definition of disability? (Own-occupation vs any-occupation; how is “unable to perform” assessed?)
- Is it agreed value or indemnity? (Agreed = your income at application; indemnity = income at time of claim — critical if income fluctuates)
- What is the partial disability benefit? (What triggers a partial claim? What proportion is paid?)
- What is the mental health limit? (Most policies cap mental health claims at 2 years even if the policy is to-age-65 — standard industry practice)
- How does the policy coordinate with ACC? (ACC pays for accidents — does the policy top-up ACC or is ACC deducted from the benefit?)
- Can I increase cover without new underwriting? (Future insurability options — important if your income grows)
Income Protection for Self-Employed NZ
Self-employed people face the greatest income protection risk — no employer sick pay, no ACC top-up for illness, no team to cover while you’re out.
Key considerations for self-employed:
- Agreed value is critical: Your income may fluctuate year-to-year. Agreed value locks in a benefit based on your income at application — important if you have a good year followed by a poor year and then become ill.
- Waiting period: Self-employed people often have reserves or business structures that can absorb a short-term absence. A 13-week wait may be appropriate if you have solid cash reserves.
- ACC and self-employment: Self-employed people still have ACC cover for accidents. But income replacement under ACC requires you to register with ACC and pay ACC levies — check you’re correctly registered.
Income Protection for Contractors
Contractors face a particular challenge: their income protection claim could be denied if their contract ends during a claim period (argument that the income would have stopped anyway). Quality policy wording addresses this — Partners Life’s contractor provisions are the strongest.
Frequently Asked Questions
How do I find a good insurance adviser in NZ? Look for a Financial Advice Provider (FAP) licensed by the FMA. Moneybalance recommends getting quotes from advisers who can access multiple insurers (not tied agents). Check the FMA’s financial service providers register at fsp.govt.nz.
Can I have income protection from two providers? Yes — but the combined benefit cannot exceed 75% of your pre-disability income. Insurers check this at claim time and may reduce payments accordingly.
What if my income drops before I claim? With agreed value: you receive the agreed benefit regardless of current income. With indemnity: you receive 75% of your income at the time of the claim — if your income has dropped, so has your benefit.