Income protection
A policy that pays a monthly benefit if illness or injury stops you working.
Definition
Income protection (IP) pays a defined monthly benefit (typically 75% of pre-tax earnings) after a waiting period, while you are unable to work due to illness or injury. Designed to replace household income, not pay off the mortgage in one lump (that is what life or TPD does).
See also
- Waiting period — The period at the start of a claim before benefits begin to pay (income protection) or the initial policy period before cover applies (life / trauma).
- Total and Permanent Disability (TPD) cover — A lump sum paid if you are permanently unable to work due to illness or injury.
Not personalised financial advice. Definitions are editorial framings of how the term is used across NZ life cover. Your specific policy wording is the authoritative source.