Calk.nz
Back to Financial & Investment

Income Protection Insurance Calculator

Estimate income protection premiums in NZ by age, gender, and wait period. Covers up to 75% of salary if illness or non-ACC disability stops you working.

By Konstantin IakovlevPublished 28 March 2026Last reviewed
Data stays on your deviceVerified formula

About this calculator

This calculator implements NZ income protection premium rate cards from AIA, Asteron, Cigna, Partners Life. Last consulted 18 May 2026. Verify the figures yourself by following the link.

NZ Income Protection market rates

Indicative — varies by provider, occupation, health
  • •Max cover (% of gross income): 75%
  • •Typical wait period options: 2 / 4 / 8 / 13 weeks
  • •Benefit period: 2yr / 5yr / to age 65
  • •Major NZ providers: AIA, Asteron, Cigna, Fidelity, Partners Life
  • •Smoker loading: ~×2 premium
  • •Tax treatment: Premiums deductible if Agreed Value

Source: Financial Services Council NZ

Disclaimer

This calculator provides estimates for general information purposes only. Results should not be relied upon as professional financial, tax, or legal advice. Tax rates and thresholds are based on publicly available IRD data and may change. Always consult a qualified tax agent or financial adviser for advice specific to your circumstances.

How NZ Income Protection premiums are priced

Premium = monthly cover × age-band rate × wait-period factor.

  1. 1

    Monthly cover amount

    Monthly_cover = annual_gross × cover_% ÷ 12 (max 75%)

    75% is the regulatory max — covers tax + leaves room for ACC interaction.

  2. 2

    Age-band rate per $1,000/mo cover

    Rate = age_band_table[gender] (e.g. $28/yr at 35-39 male)

    Rises sharply after 50.

  3. 3

    Wait period adjustment

    Adjust = 1.35× (2wk), 1.0× (4wk), 0.85× (8wk), 0.70× (13wk)

    Longer wait = cheaper.

  4. 4

    Annual premium

    Premium = (monthly_cover ÷ 1000) × rate × 12 × wait_adjust

    Real premiums also adjust for occupation class and health.

Worked example

Inputs: $85k salary, 35-39 male, 4-week wait, 75% cover

Result: Monthly cover $5,313. Rate $28/$1k. Premium = 5.31 × $28 × 12 = ~$1,785/yr ≈ $149/mo.

Frequently Asked Questions

Is income protection worth it in NZ?
It depends on your earning capacity and dependents. Income Protection (IP) pays up to 75% of your gross income if illness or non-ACC disability stops you working. ACC covers accidents but NOT illness — so a heart attack, cancer, or stroke is uncovered unless you have IP. Typical cost: $40-$150/month for a 35-45-year-old professional. Source: Consumer NZ + Sorted.
What's the difference between Income Protection and ACC?
ACC is universal NZ injury cover — funded by levies, mandatory, pays 80% of pre-injury earnings for accident-caused incapacity. Income Protection is private insurance — voluntary, pays for ILLNESS and conditions ACC doesn't cover (cancer, mental illness, chronic conditions). The two complement each other. Source: ACC + Financial Services Council.
What's the difference between Agreed Value and Indemnity Income Protection?
Two policy structures dominate the NZ market. Agreed Value sets your monthly payout at the time you buy the policy (e.g. $5,000/month). If your income later falls, you still get the agreed amount. Premiums are higher (~30%+) but predictable. Indemnity pays based on your actual income at time of claim. Cheaper, but if you're self-employed and income drops, your payout drops too. For PAYE workers with stable income, Indemnity is usually fine. For commission-based, business owners, or those with variable income, Agreed Value is worth the extra cost. Tax: Agreed Value premiums are deductible if structured correctly; Indemnity premiums aren't. Source: Financial Services Council NZ.
How does ACC interact with Income Protection in NZ?
ACC covers ANY injury — work-related or not — at 80% of pre-injury earnings (capped at the ACC maximum weekly compensation of $2,418.55/wk, set 1 July 2025). But ACC does NOT cover illness (cancer, mental illness, stroke, chronic conditions). Income Protection fills this gap. Most NZ IP policies have an 'ACC offset' clause: if ACC is paying you, the IP payout is reduced or paused so you don't double-dip. Best practice: get IP for illness cover, while ACC handles injuries. Confirm the offset clause language with your adviser. Some policies also offset against Sickness Benefit and Jobseeker Support payments. Source: ACC + Sorted NZ.

The income protection calculator estimates NZ income protection insurance premiums by age band, gender, cover level, and wait period. Income protection replaces up to 75% of your salary if illness or a non-ACC disability stops you working.

How this calculator works

ACC only covers injuries from accidents — it pays nothing if cancer, a heart condition, or mental illness stops you working, which is the gap income protection fills. Cover is capped at 75% of gross income (so there is still an incentive to return to work), and the monthly cover amount is your salary × cover % ÷ 12. Premiums are priced per $1,000 of monthly cover from an age-band table — for example around $28 per year per $1,000 for a male aged 35-39 — and rise steeply after 50. The wait period is your biggest lever: choosing an 8-week wait instead of 4 weeks cuts the premium by about 15%, and 13 weeks by about 30%, because most illnesses resolve within the wait. Real quotes also adjust for occupation class, smoking, and health history, so treat this as a planning estimate.

NZ income protection basics

Maximum cover75% of gross income
Wait period options2 / 4 / 8 / 13 weeks
Wait period pricing2wk ×1.35 · 4wk ×1.0 · 8wk ×0.85 · 13wk ×0.70
Benefit period options2 years / 5 years / to age 65
Indicative rate (male 35-39)~$28/yr per $1,000 of monthly cover
Smoker loading~×2
Major NZ providersAIA, Asteron, Chubb, Fidelity, Partners Life

Indicative market rates; actual premiums depend on occupation, health, and policy wording.

Worked Examples

$85,000 salary, male aged 35-39, 75% cover, 4-week wait

Premium ≈ $1,785/year (about $149/month) for $5,313/month of cover.

  1. Monthly cover: $85,000 × 75% ÷ 12 = $5,313
  2. Rate: $28 per $1,000 of monthly cover per year
  3. Premium: 5.313 × $28 × 12 = ≈ $1,785/year

Same person, but choosing an 8-week wait period

Premium drops to ≈ $1,517/year (about $126/month) — saving ≈ $268 a year.

  1. Base premium (4-week wait): $1,785
  2. 8-week wait factor: ×0.85
  3. Premium: $1,785 × 0.85 ≈ $1,517/year
  4. Trade-off: you self-fund the first 8 weeks off work

Built and maintained by Konstantin Iakovlev. Data sourced from the IRD and official New Zealand government sources.

Last reviewed:

Official Sources

People Also Use

Income Tax Calculator 2026-27

Tax

GST Calculator

Tax

Student Loan Repayment Calculator

Tax

Pay Calculator

Pay & Salary

Minimum Wage Calculator

Pay & Salary

KiwiSaver Calculator

KiwiSaver