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.

Product name

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.

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

  • 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.
  • You can apply for an increase at any time. And if your income goes up your level of cover can too. You just need to let us know within 60 days of your income increasing.
  • Each year your amount of cover will increase to take account of CPI, unless you advise us otherwise.
  • Choose whether you pay your premiums monthly, half yearly or annually.
  • You can change the beneficiary (the person we pay any claims to) of your policy at any time by completing this form.
  • 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 simply give you a new quote that you need to agree to.
  • If you have 2 or more Pinnacle Life policies paid by direct debit from one bank account, the second and subsequent policies will be discounted by $24 per year.
  • Your payments will increase each year as you get older.

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.
  • 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.

What cover might I need?

Thinking about what life stage you’re at might help you get started if you’re stuck wondering what you need. Choose the option that best fits what you want to plan for, we’ll then let you know what other people planning for a similar future have asked for quotes on.


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, cheque (for six monthly or annual premiums only), 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 does someone claim?

Information about making a claim can be found here.

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.

Why do I need income protection insurance?

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.

Still unsure?

Still unsure?

We can show you what insurance people planning for a similar future have asked about.

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