What is income protection insurance and why most New Zealanders don’t have it
One in seven New Zealand households have experienced serious illness preventing work for three months or more, yet most lack income protection insurance to cover expenses during that time.
Income protection insurance replaces part of your income if illness or injury stops you from working. A 2025 Financial Services Council survey found New Zealanders are more than six times likely to have car insurance than income protection cover, and just as likely to insure pets as their own income. About 55% of households would struggle to pay expenses after sick leave runs out, and ACC doesn't provide income assistance for illness-related work absences. The cover is designed as a financial safety net for people who rely on their income to meet everyday expenses.
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What is income protection anyway?
You may have protected your car, your house and your contents with insurance, but what about the income that helps pay for them? If your ability to earn was taken away tomorrow, how long would you be able to pay…