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Income Protection Insurance

You never know when illness or injury might strike, and prevent you from working for an extended period of time. How long could you survive without an income? Protect your income now before it’s too late.

Special Offer for July

Cash Bonus when you apply for cover online. Details
New World gift card when your policy is issued. Details
Discount for Life Cover + one other benefit. Details
Earn Airpoints Dollars™. Details

What is Income Protection Insurance?

Income protection insurance is a policy which pays a monthly benefit if you are unable to work in your own occupation due to illness or injury. The benefit starts after a waiting period which you choose, and is paid for a period of time which you choose.

Income protection insurance provides you with an income to enable you to meet your commitments and your living expenses, and for the upkeep of any dependants you might have. It provides an essential source of income well after standard sick leave entitlements have been exhausted.

  • Monthly payment of up to 75% of gross income.
  • Cover for both illness and accident (ACC top-up).
  • Premiums are fully tax-deductible.
  • 24 x 7 worldwide cover – no country exclusions.
  • Partial disability income benefit.
  • Recurrent disability benefit.
  • Increases in cover available every 3 years with no medical.
  • Future policy enhancements automatically included.
  • Free interim cover while your application is being processed.

You can claim a tax deduction each year for your income protection insurance premiums, so your net cost is as much as 33% less than the actual premiums which you pay.

Policy Features

Sovereign TotalCareMax Disability Income Protection includes all the following great features:

Rock-Solid Backing

The policy is underwritten by Sovereign, New Zealand’s largest life insurer. Sovereign has an A+ (Superior) financial strength rating from A.M. Best Company, the highest rating of any life insurance company in New Zealand.

Total Disability Benefit

Receive a benefit of up to 75% of your gross earnings if you are unable to work in your own occupation due to illness or injury, for a period of up to two years, five years, or through to age 65.

Partial Disability Benefit

Receive a partial income protection benefit if you have been totally disabled for 2 weeks or more and you then return to work in a reduced earning capacity.

Enhanced Partial Benefit

Any partial disability benefit you receive will be enhanced by up to 25%, payable for up to 12 months, if you have first been receiving a total disability benefit.

Vocational Retraining Benefit

Receive an additional benefit of up to 12 times your total disability benefit to cover the costs of a vocational training program to assist you in an early return to work.

Back to Work Payment

Receive a bonus back to work lump sum of 3 times your monthly disability payment when you return to full-time work after 12 months of receiving disability payments.

Recurrent Disablement Benefit

Your waiting period will be waived if you become totally disabled again from the same or a related cause within 6 months after your disability benefit ceases.

Equipment Benefit

Receive an additional lump sum payment of up to six times your monthly total disability benefit to cover the costs of buying specialised equipment or for completing necessary home alterations.

Waiver of Premium Benefit

Your premiums will be waived during any period in which you receive a total or a partial disability benefit, if you have first been totally disabled for longer than your chosen waiting period.

24 x 7 Worldwide Cover

Whether you’re at home, or travelling or working anywhere overseas for a period, you remain covered for both partial and total disability income protection benefits.

Future Insurability Benefit

At every third policy anniversary date, you can increase your cover by up to 10% of the original cover amount (maximum of $12,000 per increase), without any medical questions, examinations or tests. An increase in premium will apply.

Guaranteed Enhancement

If any change is made to the underlying policy in the future, and that change would be favourable to you, then guaranteed enhancement means that the change will automatically be applied to your policy. Conditions apply.

Free-Look Period

If at any time during the 15 days following receipt of your policy you don’t wish to continue with your cover (for whatever reason at all), you can return your policy for a full refund of all premiums paid.

Optional Redundancy Cover

You can choose to add optional redundancy cover to your income protection insurance benefit.

  • The maximum amount of redundancy cover available is $4,000 per month or the amount of your income protection benefit, whichever is lower;
  • Under the terms of the policy, a redundancy benefit is only payable for six months;
  • The redundancy benefit has a waiting period of 4 weeks from the date of redundancy until benefit payments commence (the waiting period may be longer than 4 weeks if your employer makes a redundancy payment);
  • The redundancy benefit is not available if you are made redundant within the first six months of the policy or benefit commencing;
  • Like the income protection benefit, the redundancy benefit expires at age 65.

To learn more about the redundancy benefit, please see the policy wording.

Customer Guide

Download or view the customer guide:

Income Protection Customer Guide PDF

Income Protection Customer Guide

Want to Know More?

Check out the FAQs for answers to frequently asked questions.

View or download a copy of the policy wording.

(Superior) Financial Strength Rating from A.M. Best Company, Inc. Rating scale

Special Offer

New World Promotion

Apply online today to be eligible for a 25% Cash Bonus, a $100 New World Gift Card (minimum premium required) and earn Airpoints Dollars™.
25% Cash Bonus details
$100 New World Gift Card details
Airpoints Dollars™ details

Plus, get a 10% Discount every year for any policy which includes either Life Cover for two people or Life Cover for one person plus at least one other eligible benefit (minimum cover and premium criteria apply).
Life + One 10% Discount details

Important Information

  • The above identifies and provides a brief summary only of the principal benefits under the policy. Please refer to the policy wording, including the policy appendix and schedule, for full details of all the benefits and the terms and conditions under which they are provided.