Chubb Life's income protection cover provides regular monthly benefit payments if the insured is unable to work due to illness or injury. The product is available through licensed financial advisers in New Zealand as part of Chubb Life's personal risk insurance range.
How the cover works
If the insured suffers an illness or injury that prevents them from working, and the disability persists beyond the selected waiting period, a monthly benefit is paid. The waiting period is the initial period of disability that must pass before benefits begin, typically selected from a range of options at the time of application. The monthly benefit replaces a portion of the insured's pre-disability income and continues until the insured returns to work, exhausts the maximum benefit period, or reaches the age limit specified in the policy.
Who it is for
Income protection is suited to New Zealanders who rely on their earned income to meet regular financial commitments including mortgage repayments, rent, household bills, and living costs. It is particularly relevant for self-employed individuals, contractors, and employees without significant sick leave or income replacement entitlements through their employer. Musculoskeletal conditions were the most common cause of Chubb Life income protection claims in 2024, accounting for 68% of claims.
Key features
The benefit amount is typically calculated as a percentage of pre-disability income, subject to the maximum insurable amount. Income protection is distinct from mortgage repayment cover in that it replaces a broader portion of income rather than meeting a specific debt repayment. It is also distinct from total and permanent disability cover, which pays a lump sum for permanent disability rather than a regular benefit during temporary disability.
How it fits into a protection plan
Income protection addresses the risk of extended inability to work due to illness or injury. It is commonly held alongside life insurance and trauma cover to create a comprehensive personal protection plan covering death, serious illness, and inability to work. A CompareNow adviser can help determine appropriate benefit amounts, waiting periods, and benefit periods for your situation.