Income Protection

Income Protection insurance pays you a monthly amount if you are unable to work, due to illness or injury.

It means that while you can’t work, you can still have money coming in, so you can keep on with your life even though you’re not earning.

Apply online and you’ll receive 10% off your first year's premiums.
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Every year over 50,000 New Zealand households have someone in the family who is unable to work for 3 months or more. ACC covers accidents, but it may not replace all your income and it can’t help if you become ill. Which is why protecting your income with Income Protection Insurance is so important.

If you have Income Protection with us we’ll provide you with a monthly payment which you can use for whatever you need. Whether it simply helps to cover your bills, groceries, and rent or mortgage or helps pay for alternative treatments.

You can choose the plan that best suits you and your family's needs, and make sure that you reduce the stress as you recover from your illness or injury. You need to have been in paid employment in NZ for the past 2 years to apply. For more information about our requirements check out 'Getting a policy' below.

The Basics

Getting a policy

  • You choose the monthly payment amount that will be right for you, either 60% or 75% of your current average monthly income (before tax) up to a maximum of $12k per month.
  • You can choose how long you want payments to continue for after you’ve had to stop work - either 6, 12, 24 or 36 months.
  • You also have a choice on how long you wait for your first payment (either 30, 60 or 90 days) from the time you are unable to work.
  • Apply online and you’ll receive 10% off your first year's premiums.
  • You have to be aged between 18 and 59 to get a policy. You can apply online if you are aged between 20 and 59 and are a NZ citizen or a NZ permanent resident. If you are outside the online age range please contact us.
  • You need to have been in paid employment for more than 30 hours a week in NZ for the past 2 years; either as an employee or self-employed. You can have changed employers during this time, as long as the gap between employers wasn't more than 30 days.
  • Depending on your occupation we may need to talk to you before we can give you a quote, and in some cases we can't provide you with cover at all. Contact us if you can't find your occupation (on the quote page) or if you'd like more information. Be assured however, we can provide cover for most people.
  • You can add Life Insurance to your Income Protection policy.
  • All of our policies have a 30 day free look period, so you can buy with confidence.

Once your policy is in place

  • Choose whether you pay your premiums monthly, half-yearly or annually.
  • Each year your amount of cover will increase to take account of CPI unless you advise us otherwise.
  • Your premium payments will increase each year as you get older.
  • If your income goes up, your level of cover can too. Let us know within 60 days of your increase, and we may be able to give you a proportional increase without additional information. You can apply for an increase at any time.
  • At any time you can request to change your waiting period and cover period. Give us a call on 0800 22 22 23, and we will help sort out what you need. Depending on what you want to do, you may have to apply and be assessed, or we may be able to give you a new quote that you need to agree.
  • You can change the beneficiary (the person we pay any claims to) of your policy at any time by completing this form.
  • If you are made redundant from your permanent employment while your policy is in place, we'll pay your premiums for up to 6 months while you're looking for another job.
  • Your policy will remain in place until the end of the month in which you turn 65 unless you cancel it before then.

When you need to claim on your policy

  • Contact us if you have an injury or illness that means you can't work, and we'll help you through the claim process.
  • After your waiting period is finished, your first payment will be made on the last day of the month following.
  • Payments will be offset by any other income you are receiving from paid sick leave, other insurance policies, ACC or any other government agency.
  • We’ll keep making monthly payments until you reach the end of your chosen claim period or until you return to work (whichever happens first).
  • If you die, any Life Insurance will be paid in New Zealand Dollars to the life cover beneficiary.
  • Your policy will be reinsured by Hannover Life Re, one of the largest reinsurers of life insurance in the world.


Do I need income protection insurance?

Statistics show that the most common reason New Zealanders are unable to work for an extended period of time is due to illness. ACC will only cover you for an accident or injury in this instance. Make sure you’ve got the cover that you need with income protection insurance from Pinnacle Life.

Does it matter if I have other Income Protection policies?

If you have an income protection product elsewhere already, we suggest you talk to us before taking out another policy, as you may not be able to claim on both policies. If it comes time to claim, and you receive income from other sources eg ACC or another government agency, this will be offset against your income protection payments.

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 income protection insurance cost?

Income protection insurance is calculated based on a number of factors including things like your occupation and your income as well as your age, gender and health. It’s easy to get a personalised quote from us that’s tailored to your individual circumstances, including your current rate of income on our website. If you get stuck you can always get in touch with our Customer Services team.

What are the differences between income protection and ACC?

If you are unable to work due to illness or injury, our income protection cover can help replace your lost income, so that the bills can still be paid, and stress on the family is reduced while you recover.

In NZ we are lucky to have ACC, however, ACC doesn’t cover you when you can’t work due to sickness. Statistics show the most likely reason that you may not be able to work for an extended period of time is an illness. ACC will pay a maximum of up to 80% of your income as weekly compensation if you’re unable to work due to an injury.

The maximum cover that Pinnacle Life can provide under our Income Protection Cover is 75% of your income.

If ACC are replacing 80% of your income, your income protection cover won’t top you up to 100% however, if you are receiving less than 75% from ACC, we may be able to top you up to 75%. Any income that you receive while you are off work, whether it is from ACC, WINZ or another insurance policy, will affect our payments to you.

What does income protection cover?

Income protection insurance covers you for sickness, as well as accidents or injury that prevents you from working. ACC does not cover you for illness, so income protection insurance can be a great option to cover your bases.

What if my income changes?

If you have income protection, we suggest you let us know when your income changes, so that you can change your level of cover accordingly. If you let us know within 60 days of your income increasing we can usually increase your cover without requiring any further medical information. We recommend you review your level of cover regularly, but particularly when you have significant changes to your income levels.

What is income protection insurance?

Income protection insurance takes care of you and your family if you become temporarily unable to work due to an accident, illness, or injury. It means you receive a monthly payment to account for your loss of earnings to ensure that life’s necessities can be paid for as usual until you’ve recovered.

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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