Income protection insurance has become more popular as people begin to realize how important it is for protecting our life style and way of life. For those of you who are not familiar with income protection insurance, this is a type of insurance that protects your income if you should become ill or injured and are no longer able to work. The policy will pay you up to 75% of your annual income, but there are restrictions. Below are a few of the companies that offer income protection insurance in New Zealand along with a little bit of information about each of the companies.

NZLife. An online source for Insurance for Kiwis:

NZLife.com provides insurance through Sovereign Assurance. The website offers life insurance, accidental death insurance, critical illness insurance, total permanent disablement insurance, and income protection insurance. The website offers a premium calculator to help shoppers see an estimation what their premiums are going to cost. NZlife is a member of the Institute of Financial Advisers. The site has many beneficial links that consumers can click to get to know the company and the products that they offer. nzlife.com

Lifebroker New Zealand:

lifebroker.co.nz/ is an online portal that links consumers with information about income protection insurance that is offered through Lifebroker of New Zealand. The website posts a guarantee that says they will match or beat any quote.  There income protection page is not very comprehensive with only a generalized statement that indicates their income protection plan will pay up to 75% of your annual wages if you become disabled and can not work. The third click on the page takes you to a page that has even less information but offers you a toll free phone number for a quote. The income protection page offers a small fill in the blank form that indicates they may offer several types of income protection policies, but it is not clear. There is not a calculator that helps consumers to determine approximate costs. This means the consumers will have to be called by a broker to go over differences in policy types and to receive rates.

CIGNA: New Zealand’s Income Protection Insurance:

CIGNA.co.nz offers shoppers income protection insurance along with trauma insurance, accidental death insurance, life insurance and identity theft insurance. One of the interesting options that is listed on their website is that consumers can choose the amount of benefit up to $2500 per month.  They also list that the benefit paid out is on top of any ACC entitlements that the claimant may receive.

CIGNA New Zealand is one of the many companies that make up CIGNA corporation which is also a member of the Fortune 500 companies. They offer their insurance policies under the CIGNA name but you may also find that you find CIGNA policies sold by brokers or independent brokers within New Zealand.  The payment history of the company is rated as an A, which translates as EXCELLENT by A.M Best Company Inc. The rating was received in December of 2011.

Rating

A++ Superior B+ Very Good C Marginal
A+ Superior B Adequate C- Marginal
A Excellent B- Adequate D Very Vulnerable
A- Excellent C++ Fair E Under Supervision
B++ Very Good C+ Fair F In Liquidation

Inform NZ: Provides Health Insurance, Life Insurance, Income Protection …

Westpac: New Zealand Income Protection Insurance:

westpac.co.nz Offers income protection insurance on their website. The detail of their insurance plan is extensive and they do a good job of outlining benefits and processes for clients or potential consumers. The income protection that they offer seems to be limited to 75% of annual income after all ACC and if your benefits from ACC are 80% of your annual income then the income protection policy offered by Westpac, does not pay out. They did not offer a calculator for premium estimations. The policies that Westpac writes are underwritten by Westpac Bank NZ Limited.

Sovereign: Income Protection Insurance:

soverign.co.nz/ is an online site that seems to focus more of its policy offerings to businesses and not specifically to individuals. The site is full of details about their policies as well as the requirements needed for businesses to start services. Policies appear to pay 75% of annual income if a debilitating event should occur. The website lists several disclaimers which are typical within the industry such as not all occupations are accepted. They also list several perks which are not always seen in income protection policy coverage such as their occupation clause which stated that employees could name their occupation and if they were unable to work in that occupation they would be eligible for benefits. Overall, a lot of information that may need to be scrutinized by consumers as not all statements on the site were properly defined. The Sovereign site was comprehensive and full of tools that would be applicable for existing customers.  Tabs such as “Leaving Your Employer” are important and I had the feeling they do care about their customers.

In closing this article, I would like to remind consumers who are shopping for income protection that while income protection insurance is important, it is equally important to read the fine print and beware of industry pitfalls such as policies that offer benefits for periods of time less then five years. A more comprehensive list of pitfalls will follow in a separate article – click here

 

(This article and all articles on this site are not to be taken as professional insurance advice and information may not be accurate, for insurance advice please speak to a registered insurance broker. We can connect you with a broker by using the form on this site.)