Disability Cover

Adding Disability Insurance to your Life Insurance policy can help make life a little bit easier if you become totally and permanently disabled.

We'll pay the owner of the policy a tax-free lump sum if you become permanently unable to work or meet our Total and Permanent Disability Definitions due to accident or illness.

It can only be purchased alongside Life Insurance.
Product name

Disability cover (sometimes called Total and Permanent Disability Insurance or TPD) is an advance payment of your life cover. It is paid in a lump sum if you become

  • permanently unable to work due to illness, accident or injury for a period of six consecutive months, and are unable to do your usual occupation (see the definitions link on the right for more info) or
  • suffer one of the conditions covered by our definitions (see link on the right), which include loss of limbs and sight and are different from the conditions covered by Critical Illness Cover, or
  • need assistance to perform two out of the five specified daily living activities (see link on the right), such as helping with eating, drinking, or dressing.

The lump-sum payment is tax-free and can be used however you need, whether that's modifications to your home, care at home or other assistance.

The Basics

Getting a policy

  • If you want to add Disability Insurance cover to your Life Cover you’ll need to contact us.
  • Disability Insurance can be added as an early payment option to your Life Insurance.
  • From $100,000 to $1 million, you decide on the amount that’s right for you.
  • If you are aged between 18 to 59 years and living in NZ, Australia, USA, Canada, UK, Ireland, Hong Kong or Singapore you can apply.

Once your policy is in place

  • If you get married, divorced, take out a mortgage or become a parent, you may be able to increase your cover by up to 50% with no medical questions asked. We understand that life changes!
  • You can decrease or remove your Disability Insurance from your Life Insurance policy at any time without penalty.
  • Your payments will increase each year as you get older.
  • When you turn 65 your Disability Cover will end.

When you need to claim on your policy

  • You will get a cash lump-sum payment, depending on the amount of cover you've selected, of up to $1 million.
  • Your Life Insurance will reduce by the amount of the lump-sum payment. Disability Cover is an 'early payment benefit', sometimes called 'accelerated' cover.
  • Your claim will be paid in New Zealand Dollars anywhere in the world, to the person who owns the policy.
  • Your policy will be reinsured by Hannover Life Re, one of the largest reinsurers of life insurance in the world.


Can I get cover for my parent/partner?

Yes, they simply need to apply. Note that it's the person getting insured who must provide the answers to the health questions on the application form and complete the declaration. When the policy is issued, the insured person will also be the policy owner. If they want to change that, they will need to request an update using the 'change of ownership' form included in the policy.

Do I need disability insurance?

It’s a good idea to consider adding disability insurance to your life cover with Pinnacle Life. In this way, you’ll be covered for sudden changes in circumstances that affect your ongoing ability to work and take care of yourself, and you'll avoid a financial burden for you and your family.

How can I pay?

You can pay your Pinnacle Life premiums monthly, six-monthly or yearly. We prefer it if you pay by direct debit, however we also accept internet banking/automatic payment, or credit card. When paying via credit card, a charge of 3.95% is added to your premiums.

We do not accept weekly or fortnightly payments.

How much does disability insurance cost?

The cost of disability insurance varies depending on your individual circumstances, including things like your age, gender, your health, occupation and your chosen level of cover. It’s up to you to decide the level of disability insurance coverage you want, you can choose from anywhere between $100,000 up to $1 million.

What does disability insurance cover?

If you were to become permanently unable to work due to an illness, accident or injury, you may be eligible to receive a disability insurance lump-sum payment. It includes some conditions, such as loss of limbs, that fall outside of our Critical Illness cover. Take a look at our Total and Permanent Disability Definitions to see exactly what’s covered.

What if I forgot to declare something on my application?

You need to let us know as soon as possible. The additional information you provide may or may not affect your policy. Your policy may be placed on hold while we work through the assessment process, alternatively we may need to void your policy and issue you with a new policy once we have completed our assessment. If you are unsure whether you disclosed something on your application, please contact us and we will send you a copy of your application to review.

What is disability insurance?

Disability insurance is an advance payment of life cover, paid out if you were to suffer an accident, illness or injury that resulted in your total and permanent disability. TPD insurance allows you to move forward with your life and account for any extra costs, including modifications to your home and care assistance.

Need help working out what life insurance you need?

Use our tool to do your own advice.
No need to talk to anyone (that means you can do it in your pajamas).

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