What is income protection insurance?

It’s as easy as pie! The diagram above shows just how simple it is to apply for income protection insurance with OneChoice.

The great news is that OneChoice won’t ask you to take any medical exams or blood tests to apply! All you have to do is pick up the phone. You’ll be asked some simple questions that will help the underwriting process to determine how much cover you qualify for and how much your premiums will cost.

Questions can include the following (but not limited to):

• What is your age?
• What was your sex at birth?
• Are you a New Zealand resident?
• What is your occupation?
• Do you smoke?
• What is your medical history (current or past sickness and injuries)?

The most important thing is to be honest when answering these questions because being untruthful can affect your ability to make a claim successfully. Plus, if you have any questions of your own, this is a perfect time to ask one of our friendly team members anything you’re curious about.

Do your homework and check what you’re covered for

Before you take out your policy, be sure to confirm with your insurance provider what you are covered for as well as any exclusions or limitations to the cover. Be sure to read your Policy Document to confirm your expectations are reflected in those documents before you finalise your policy. After the policy is in place, your insurer will send you the Policy Schedule and other relevant documents.

So, what aren’t you covered for?

Just like any other type of insurance, income protection policies don’t cover every scenario. There are exclusions that apply to the cover, with examples such as pre-existing medical conditions, and attempting suicide or intentionally inflicting self-harm, being some common exclusions.

This list of exclusions will be different for every insurer, so knowing what you’re covered for and what’s excluded is the best way to make sure you get the most out of your policy. The best place to start is by reading your Policy Document and Policy Schedule as every policy is different.

Why is income protection insurance important?

You might be asking yourself – do I really need income protection insurance? Income protection insurance can play a big part in providing a level of financial security that your future self and your family will thank you for, should life take a turn for the worse and leave you unable to work because of a sickness or injury. Everyone’s circumstances are different though.

When considering if you need income protection insurance, consider things such as how much you have in savings, how much sick leave you have, as well as any other source of income or offsets you may be entitled to. Consider whether you rely on your income to pay your bills, put food on the table, keep a roof over your head, and how this would be affected if you could not work for a period.

With the cost of living at an all-time high, Kiwis are certainly feeling the pinch. Adding loss of income to the mix could have a strong impact on everyday families. If you get sick or injured, you are already in a vulnerable position – having income protection insurance could help you rest a little easier and not worry about any potential disruptions to you or your lifestyle.  

Keep in mind that any benefit payments may be reduced by other offsets you receive such as paid sick leave, other insurance policies, ACC or any other government agency payments, for your sickness or injury.