Income Protection Cover
For most of us the ability to earn an income is our biggest asset. The financial consequences of a disability, extended illness or accident could be devastating for our lifestyle and those that depend on us, financially and emotionally.
Recovering from an illness or accident is difficult enough without the added stress of financial worries. Income Protection insurance replaces a portion of your income if you are unable to work due to sickness or injury. Income Protection insurance pays you a monthly benefit and can cover up to 75% of your pre-tax income. The funds can help you to continue to support yourself and your loved ones.
Common Claim Causes for Income Protection from 1 July 2021 - 30 June 2022
At a glance
The average age of Income Protection claimants was 46 years old.
92% Of Income Protection claims
received were accepted
76% of all Income Protection claims were for males.
Out of all income protection claims accepted;
12% of all claims were for back or
shoulder injuries and dislocations.
8% of all claims were for fractures.
Source: Asteron Life Claims
58% Accident/Physical Injury
11% Cancer
8% Mental Health
4% Stroke
4% Brain Injury
4% Brain Disorder
Mortgage Protection Cover
Mortgage Protection Insurance is disability insurance that pays a tax-free monthly benefit if you cannot work due to an accident, sickness or mental illness to pay your bank debt or rental property and living costs.
It is common to confuse income protection and mortgage protection insurance, but they are somewhat different. Unlike income protection insurance, mortgage protection insurance is always tax-free and has no offsets and therefore has become more common in recent years.
Accommodation costs are among the most significant bills people face, and New Zealand has some of the most unaffordable properties¹ in the world. With that in mind, it’s crucial to think about how you’d continue to pay your mortgage or rent if you or your partner lost your source of income.
If it would be difficult, or if you’re self-employed and not eligible for accident cover from ACC, then mortgage protection insurance, also called mortgage and rent cover, might be for you.