Income protection insurance can be a financial lifeline if you’re unable to work due to sickness or injury, providing a source of income to help cover your living expenses. Hardworking Kiwis, like yourself, who rely on their regular income to pay their day-to-day expenses may consider taking out this cover. It can help by providing a steady cashflow into your bank account if you can’t work and earn an income.
You can apply for OneChoice Income Protection Insurance if you work at least 15 hours per week and are aged between 16 – 60. This insurance pays a monthly benefit amount to you, if you become too sick or injured to work. This means that you can get a monthly income paid into your bank account to cover the loss of your pay. You're in the driver's seat with how you decide to spend these payments, so you can spend it however you need to – whether that’s for everyday expenses or recovery costs to help you get back on your feet.
While the New Zealand government does offer some financial protection under the Accident Compensation Corporation (ACC) for injuries, it generally won’t cover sickness.1 OneChoice Income Protection Insurance offers cover for a wide range of sicknesses and injuries, giving you a sense of financial security and the freedom to focus on what matters most – your recovery and well-being.
If you haven’t given income protection insurance a good old think or aren’t sure where to start, then you’ve come to the right place. Keep reading to get a better idea of what it’s all about and feel confident making a choice that suits your circumstances.
It’s as easy as pie! The diagram above shows just how simple it is to apply for income protection insurance with OneChoice.
The great news is that OneChoice won’t ask you to take any medical exams or blood tests to apply! All you have to do is pick up the phone. You’ll be asked some simple questions that will help the underwriting process to determine how much cover you qualify for and how much your premiums will cost.
Questions can include the following (but not limited to):
The most important thing is to be honest when answering these questions because being untruthful can affect your ability to make a claim successfully. Plus, if you have any questions of your own, this is a perfect time to ask one of our friendly team members anything you’re curious about.
Before you take out your policy, be sure to confirm with your insurance provider what you are covered for as well as any exclusions or limitations to the cover. Be sure to read your Policy Document to confirm your expectations are reflected in those documents before you finalise your policy. After the policy is in place, your insurer will send you the Policy Schedule and other relevant documents.
Just like any other type of insurance, income protection policies don’t cover every scenario. There are exclusions that apply to the cover, with examples such as pre-existing medical conditions, and attempting suicide or intentionally inflicting self-harm, being some common exclusions.
This list of exclusions will be different for every insurer, so knowing what you’re covered for and what’s excluded is the best way to make sure you get the most out of your policy. The best place to start is by reading your Policy Document and Policy Schedule as every policy is different.
You might be asking yourself – do I really need income protection insurance? Income protection insurance can play a big part in providing a level of financial security that your future self and your family will thank you for, should life take a turn for the worse and leave you unable to work because of a sickness or injury. Everyone’s circumstances are different though.
When considering if you need income protection insurance, consider things such as how much you have in savings, how much sick leave you have, as well as any other source of income or offsets you may be entitled to. Consider whether you rely on your income to pay your bills, put food on the table, keep a roof over your head, and how this would be affected if you could not work for a period.
With the cost of living at an all-time high, Kiwis are certainly feeling the pinch. Adding loss of income to the mix could have a strong impact on everyday families. If you get sick or injured, you are already in a vulnerable position – having income protection insurance could help you rest a little easier and not worry about any potential disruptions to you or your lifestyle.
Keep in mind that any benefit payments may be reduced by other offsets you receive such as paid sick leave, other insurance policies, ACC or any other government agency payments, for your sickness or injury.
Your home is your haven. Your monthly income protection benefits can help you make your mortgage repayments or your rent on time – so even if you’re down, you’re not out (of pocket)!
Electricity, water, council rates, internet, and phone bills are necessities that come at a cost. Your monthly benefits can help you stay on top of these, so when your email pings with an upcoming payment reminder or the postie pops a bill in the letterbox, you can be confident that those bills can be taken care of, easy as!
Whether you are the sole breadwinner or part of a dual-income household, losing your pay for even a short time can have an impact on you or your family’s quality of life. Income protection can help you make sure your family carries on eating nutritious meals, covering your kids’ school fees and even continue to be able to put funds away for a family holiday to the bach.
You may have recently welcomed a new baby into your life or gotten married or engaged. Don’t let an unexpected sickness or injury hinder you from enjoying these precious moments. Fulfill any financial commitments that arise during major milestones with the help of your monthly benefits.
Protect your ability to make ends meet with OneChoice.
Income protection insurance provides cover for several common sicknesses and injuries.
Some examples of injuries and sickness you may be able to claim for loss of income, depending on your occupation, include:
Be sure to read your Policy Document to confirm exactly what you are covered for, as no two policies are the same. If you have any questions about OneChoice Income Protection Insurance, you can call us and speak to our friendly team, or better yet, they can call you!
You work hard, so it makes sense to want to protect the life you’ve worked hard to build. Income protection insurance can help future-proof against life’s hurdles. Imagine facing unexpected medical bills and your living expenses without a steady income – income protection can be a financial lifesaver by providing a vital income stream if you're unable to work due to sickness or injury.
Protect your income now – your future self will thank you
Whether you’re a rookie to the workforce or a seasoned pro, with OneChoice you can be confident that your lifestyle will be protected. Once your income protection insurance is in place, it will remain active for the term of your policy, so long as you continue to pay your premiums.
It doesn’t matter if you’re a sole trader, self-employed or are an employee – you can cover up to 75% of your monthly pre-tax income, up to $15,000 per month. You can use the monthly payments however you like, such as to pay bills and living expenses if a sickness or an injury prevents you from working.
Just answer a few questions about your work, health, and lifestyle over the phone – no medical or blood tests needed to apply. That's all it takes to get started with protection that looks out for you (and your income). Piece of cake!
Not only can income protection safeguard your income, but it may also offer a financial win at tax time – sweet as! When tax time rolls around, consider chatting with a tax professional to see if your premiums qualify for a deduction.2
If you have to make another claim within 6 months of your last claim because your sickness has returned in that time, it’ll be counted as a continuation of the first claim. This means you won’t have to go through another waiting period before you’re paid a benefit. Good as gold!
As well as a monthly benefit payment, you can receive an additional reimbursement of up to 50% of your income benefit each month, to a maximum of $3,000, for up to 6 months if you actively participate in a rehabilitation program. Alternatively, you have the option to be reimbursed 6 times the income benefit to support your efforts to return to work.
You can apply for a waiting period of 30 or 90 days – it's up to you! This is the time you’ll have to wait before your income benefit payments are payable.
You can apply for a benefit period of 6 months, 1 year, 2 years, or 5 years. This is the maximum period you can receive your monthly benefits for, if you’re unable to work. Easy as!
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