Income Protection: Your financial safety net

If your ability to work is what keeps the lights on, it’s worth asking: what happens if you suddenly can’t?

For self-employed Kiwis, there’s no employer sick leave or guaranteed pay check. That’s where income protection comes in. It’s designed to pay you a regular income if illness or injury stops you from working, so you can keep up with rent, groceries, and other essentials while you recover.

• How it works
  You choose how much of your income you want covered (up to 75%), how long you’d wait before payments kick in (usually 4–13 weeks), and how long you’d like to receive them (two years, five years, or until age 65).
• But what about ACC?
  Good question. ACC only covers injuries, not illnesses. And since many work absences are due to health issues, income protection fills that gap.

Mortgage Protection: Keeping your home secure

If you’re self-employed and paying off a mortgage, this one’s worth a look. Mortgage protection helps cover your home loan (or rent) if you’re unable to work due to illness or injury.

It’s usually short-term (1–2 years), and unlike income protection, it’s not offset by ACC or other payments. Some people choose to have both policies to make sure their income and home are covered from all angles.

Life Insurance: For the people who rely on you

No one likes to think about it, but if you have dependants or debt, life insurance is one of the most important covers you can have.

It pays out a lump sum if you pass away, money your family can use however they need, whether that’s paying off the mortgage, covering everyday expenses, or replacing your income.

Trauma Insurance: Support when life gets serious

Also known as Critical Illness Cover, trauma insurance pays a one-off lump sum if you’re diagnosed with a serious condition* like cancer, a stroke, or a heart attack.

Even if you can technically keep working, trauma cover gives you options: time off, help with treatment costs, or simply space to focus on what matters most.

*The list of qualifying conditions varies from provider to provider.

Health Insurance: More options for treatment and diagnosis

New Zealand’s public health system is great in emergencies, but non-urgent care could potentially mean long waits, something that’s not ideal when time off work hits your bottom line.

In this scenario, health insurance may give you faster access to private care, so you can get diagnosed, treated, and back to work sooner. You can tailor your cover to suit your needs from GP visits to surgery, diagnostics, and even non-Pharmac medications.

Ready to build your safety net?

Many people focus on life insurance but don’t consider income protection, assuming ACC will cover them if they can’t work. However, ACC only covers accidental injuries—not illnesses. If you were unable to work for an extended period, how would you manage your everyday expenses?

How we can help: We can explain how income protection works and help tailor it to your budget and financial situation, giving you peace of mind that your income is protected if the unexpected happens.

Do you have any questions?

If you’re self-employed and want peace of mind, we’re here to help. We’ll take the time to understand your situation, explain your options, and build a protection plan that fits your lifestyle and budget.

Disclaimer: Please note that the content provided in this article is intended as an overview and as general information only. While care is taken to ensure accuracy and reliability, the information provided is subject to continuous change and may not reflect current development or address your situation. Before making any decisions based on the information provided in this article, please use your discretion and seek financial advice.

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