Income protection insurance replaces a portion of your income if illness or injury stops you from working. In New Zealand, ACC covers accidents — so income protection is primarily for illness-related inability to work.
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Key Guides
- ACC vs Income Protection Insurance NZ — What’s the Difference?
- Income Protection Waiting Periods & Benefit Periods NZ
- Is Income Protection Tax Deductible in NZ?
- Redundancy Insurance NZ — Is It Worth It?
For Your Situation
Why Income Protection Matters
Your ability to earn an income is likely your most valuable financial asset. A 35-year-old earning $100,000/year who works until 65 will earn $3,000,000 over their career. Life insurance protects against death — income protection protects against the more common scenario of being alive but unable to work.
Statistics consistently show that illness, not accidents, is the most common cause of long-term work absence in New Zealand. Mental health conditions, cancer, cardiac events, and musculoskeletal conditions are among the leading causes.
ACC covers accidents. The public health system treats you. But neither replaces your income if illness keeps you off work for months or years.