Income Protection Insurance Calculator

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.

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.

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.

ACC covers ANY injury — work-related or not — at 80% of pre-injury earnings (capped at $156,641 liable earnings × 80% = ~$2,409/wk). 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.