Income Protection Insurance

Q: What is income protection insurance?

&lt;p&gt;&lt;a href=&quot;/income-protection-insurance/what-is-income-protection-insurance&quot;&gt;Income protection insurance&lt;/a&gt;&amp;nbsp;is designed to safeguard your income if you are unable to work due to sickness or injury, by replacing your regular income. With this cover, you can continue living life without having to worry about how you will pay for essential expenses like grocery and utility bills, the mortgage or rent, school fees, and car or public transport costs.&lt;/p&gt;&lt;p&gt;OneChoice Income Protection Insurance&amp;nbsp;covers a portion of your income and is available to New Zealand residents aged between 16 – 60, who work at least 15 hours a week either as an employee, a sole trader or are self-employed. You can apply for up to $15,000 per month, up to 75% of your income, to help with taking care of your expenses and maintain your lifestyle, while you recover.&lt;/p&gt;

Q: Is income protection insurance worth it?

&lt;p&gt;Income protection insurance could be worth considering if you rely on your income to cover your day-to-day expenses – such as bills, mortgage or rent, groceries, or even school fees. If you earn a wage or salary, are self-employed, or a small business owner, income protection insurance can help you meet your financial needs and maintain your lifestyle by providing you with monthly benefit payments if you’re unable to work due to sickness or injury.&lt;/p&gt;&lt;p&gt;While the New Zealand Government’s ACC program can cover medical costs for specific injuries resulting from accidents, as well as provide income support, it doesn’t cover all injuries and it generally doesn&#39;t cover sickness. With &lt;a href=&quot;/news-vault/kiwi-concerns-report&quot;&gt;63% of Kiwis&lt;/a&gt; being very concerned about not being able to cover emergencies or unexpected costs, income protection may be worth considering for peace of mind that you can continue to have an income if you are unable to work due to sickness or injury.&lt;/p&gt;

Q: How much income protection insurance do I need?

&lt;p&gt;You can cover a portion of your income, up to 75%, and up to $15,000 per month with OneChoice Income Protection Insurance. However, everyone is different, with different income and lifestyles, and the &lt;a href=&quot;/income-protection-insurance/how-much-income-protection-insurance-do-i-need&quot;&gt;amount of income protection insurance you need&lt;/a&gt;&amp;nbsp;can depend on factors such as the amount of sick leave you have, how much income you’re earning, how much of it you spend on expenses (mortgage or rent, groceries, phone, electricity, and water bills), plus any other obligations you have.&lt;/p&gt;

Q: What is the difference between income protection insurance and mortgage protection insurance?

&lt;p&gt;Income protection insurance protects your income if you are unable to work temporarily because of sickness or injury. This means you can get paid monthly benefit amounts that you can use in any way that you see fit, while you recover. This could include any living expenses, like mortgage or rent, as well as enjoying your usual lifestyle – it’s completely up to you.&lt;/p&gt;&lt;p&gt;Mortgage protection insurance is a type of cover that you can get to protect your mortgage repayments. So, if you are sick or injured, your mortgage repayments will be paid by your insurance provider for a certain period of time.&lt;/p&gt;&lt;p&gt;But remember, with income protection insurance, you can use your monthly benefits not just to cover your mortgage but to also meet other financial commitments, including any medical bills related to your sickness or injury.&lt;/p&gt;

Providing an income if you’re unable to work due to sickness or injury.

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OneChoice Income Protection Insurance

We never know what's around the corner, and if a sudden sickness or injury strikes you could be left high and dry – especially if you can’t work and rely on your regular income to help make ends meet. This is where OneChoice Income Protection Insurance can step in like a trusty sidekick with cover for up to 75% of your monthly income (up to $15,000 per month) if you can’t work because you’re sick or injured. This can allow you to focus on your recovery so you can rest up, heal and get back to cherishing life’s joys with your whānau.

The New Zealand Government has a benefit program called Accident Compensation Corporation (ACC) which provides assistance for specified injuries resulting from an accident, however it generally doesn’t cover sickness.¹It can be important to ensure you have considered all bases when it comes to the unexpected, which is why OneChoice offers flexible income protection insurance that covers you for both sickness and injury.

What you get with OneChoice Income Protection Insurance:

Working New Zealand residents aged 16 – 60 can apply

Whether you’re a rookie to the workforce or a seasoned pro, with OneChoice you can be confident that your lifestyle will be protected. Once your income protection insurance is in place, it will remain active for the term of your policy, so long as you continue to pay your premiums.

Cover for both employees and the self-employed

It doesn’t matter if you’re a sole trader, self-employed or are an employee – you can cover up to 75% of your monthly pre-tax income, up to $15,000 per month. You can use the monthly payments however you like, such as to pay bills and living expenses if a sickness or an injury prevents you from working.

Apply in just one phone call

Just answer a few questions about your work, health, and lifestyle over the phone – no medical or blood tests needed to apply. That's all it takes to get started with protection that looks out for you (and your income). Piece of cake!

Premiums can be tax deductible

Not only can income protection safeguard your income, but it may also offer a financial win at tax time – sweet as! When tax time rolls around, consider chatting with a tax professional to see if your premiums qualify for a deduction.²

Recurrent disability benefit

If you have to make another claim within 6 months of your last claim because your sickness has returned in that time, it’ll be counted as a continuation of the first claim. This means you won’t have to go through another waiting period before you’re paid a benefit. Good as gold!

Rehabilitation benefit

As well as a monthly benefit payment, you can receive an additional reimbursement of up to 50% of your income benefit each month, to a maximum of $3,000, for up to 6 months if you actively participate in a rehabilitation program. Alternatively, you have the option to be reimbursed 6 times the income benefit to support your efforts to return to work.

Choose your waiting period

You can apply for a waiting period of 30 or 90 days – it's up to you! This is the time you’ll have to wait before your income benefit payments are payable.

Flexible benefit period

You can apply for a benefit period of 6 months, 1 year, 2 years, or 5 years. This is the maximum period you can receive your monthly benefits for, if you’re unable to work. Easy as!

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Some things you should know:

Your monthly benefit amount and benefit period are dependent on the underwriting outcome.
Your income benefit payments will be based on either the monthly amount insured or 75% of your pre-tax income, whichever is less, and reduced by any other offsets you receive such as paid sick leave, other insurance policies, ACC or any other government agency payment, for your sickness or injury.
Your policy will expire on the policy anniversary after your 65^th birthday.
This is a summary of the OneChoice Income Protection Insurance policy. For full details including what exclusions apply, please read the Policy Document.

Get to know income protection insurance

What is income protection insurance?

Protecting your income can give you a safety net, should things go sideways. If you can’t work, income protection insurance can do the heavy lifting when it comes to paying the bills and maintaining your lifestyle. Read more

How much income protection insurance do I need? 

Everyone’s individual situation is different. Anyone who is employed, either full-time or part-time should consider whether income protection insurance would assist to help cover bills and everyday expenses if they were unable to work due to sickness or injury. Read more.

Is income protection insurance tax deductible?

Think of your income protection insurance premiums as a payment to protect your financial well-being. When you pay premiums, you’re not just safeguarding your income – you’re also potentially unlocking a tax deduction. So, when tax time rolls around, be sure to seek advice from a tax professional to see if you can include the premiums you’ve paid as part of your deductions. Read more.

Award-winning insurance

At OneChoice we’re proud to provide award-winning service and value to our fellow Kiwis.

OneChoice - the Kiwi choice

We look out for our family too (that’s you). With OneChoice, you can take on life with confidence, knowing we’ve got you covered.

OneChoice: the smart choice

We’re all for Kiwis

We love what we do and who we do it for. That’s why our cover is designed just for Kiwis (that’s you - not the bird).

Built on success

Your policy is issued by Pinnacle Life and backed by Hannover Re, one of the world’s leading underwriters. So you’re in safe hands.

Insurance, but simple

Life’s too short for confusing paperwork. We skip the medicals and forms to apply by asking you questions over the phone.

Have it your way

Our insurance gives you heaps of choice – from your cover amount, payment frequency, your beneficiaries, and more. You’re in control.

Ready to protect your income?

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Still reading?

Frequently asked questions

What is income protection insurance?

Income protection insurance is designed to safeguard your income if you are unable to work due to sickness or injury, by replacing your regular income. With this cover, you can continue living life without having to worry about how you will pay for essential expenses like grocery and utility bills, the mortgage or rent, school fees, and car or public transport costs.

OneChoice Income Protection Insurance covers a portion of your income and is available to New Zealand residents aged between 16 – 60, who work at least 15 hours a week either as an employee, a sole trader or are self-employed. You can apply for up to $15,000 per month, up to 75% of your income, to help with taking care of your expenses and maintain your lifestyle, while you recover.

Is income protection insurance worth it?

Income protection insurance could be worth considering if you rely on your income to cover your day-to-day expenses – such as bills, mortgage or rent, groceries, or even school fees. If you earn a wage or salary, are self-employed, or a small business owner, income protection insurance can help you meet your financial needs and maintain your lifestyle by providing you with monthly benefit payments if you’re unable to work due to sickness or injury.

While the New Zealand Government’s ACC program can cover medical costs for specific injuries resulting from accidents, as well as provide income support, it doesn’t cover all injuries and it generally doesn't cover sickness. With 63% of Kiwis being very concerned about not being able to cover emergencies or unexpected costs, income protection may be worth considering for peace of mind that you can continue to have an income if you are unable to work due to sickness or injury.

How much income protection insurance do I need?

You can cover a portion of your income, up to 75%, and up to $15,000 per month with OneChoice Income Protection Insurance. However, everyone is different, with different income and lifestyles, and the amount of income protection insurance you need can depend on factors such as the amount of sick leave you have, how much income you’re earning, how much of it you spend on expenses (mortgage or rent, groceries, phone, electricity, and water bills), plus any other obligations you have.

What is the difference between income protection insurance and mortgage protection insurance?

Income protection insurance protects your income if you are unable to work temporarily because of sickness or injury. This means you can get paid monthly benefit amounts that you can use in any way that you see fit, while you recover. This could include any living expenses, like mortgage or rent, as well as enjoying your usual lifestyle – it’s completely up to you.

Mortgage protection insurance is a type of cover that you can get to protect your mortgage repayments. So, if you are sick or injured, your mortgage repayments will be paid by your insurance provider for a certain period of time.

But remember, with income protection insurance, you can use your monthly benefits not just to cover your mortgage but to also meet other financial commitments, including any medical bills related to your sickness or injury.

More FAQs & Help

Exclusions applicable include but are not limited to, no cover for injury or sickness caused through an intentional or self-inflicted act, war or riot, engaging in criminal acts or associated with pregnancy or elective surgery. For further details please read the PD.

Accident Compensation Corporation – acc.co.nz
Inland Revenue – ird.gov.nz

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