Income protection insurance is quite simple. If you lose your income due to temporary or permanent disability through illness or accident you will be paid a percentage of your previous salary for the period of cover, which could be two years, five years, or until age 65.

• • 1 in 9 men and 1 in 5 women are likely to be disabled and off work for more than 12 months before the age of 65.
• • 5 in 10 men and 7 in 10 women are likely to become disabled due to an illness or accident before they turn 65, preventing them from working for at least 1 month.
• • Of these, nearly a third will still be on claim 12 months after. • Disease or illnesses are the most common reasons for disability among adults.
• • Accidents or injuries are the cause of disability for an estimated 166,300 adults in New Zealand these are partially covered by ACC.