Income Cover
Income Cover provides regular monthly payments if you're unable to work due to illness or injury, helping you continue to meet your everyday living expenses while you recover.
For many people, their income is their most valuable asset. It pays the mortgage or rent, keeps food on the table, covers household bills and supports the lifestyle they've worked hard to build. If illness or injury prevents you from working, Income Cover is designed to help replace a portion of your lost income.
Rather than paying a one-off lump sum, Income Cover provides regular monthly payments while you're unable to work and meet your policy's claim definition. The amount you're insured for is usually based on a percentage of your income, and payments continue until you're able to return to work or you reach the end of your policy's payment period.
Most policies allow you to choose a wait period before payments begin, which can affect the cost of your cover. Some policies also include additional features, such as partial disability benefits, rehabilitation support or assistance with returning to work.
Every insurer has different policy definitions, benefits and options, so it's important to understand how your cover works. Choosing the right Income Cover means considering your income, financial commitments and how long you could manage without your regular pay if the unexpected happened.
Why It Matters
Your ability to earn an income is what funds your lifestyle and future goals. Income Cover can help provide financial stability during an unexpected illness or injury, allowing you to focus on your recovery rather than worrying about how you'll pay your everyday expenses.
Common Misunderstandings
"Income Cover replaces my entire salary."
Not usually. Most policies insure a percentage of your income rather than 100%.
"It only covers accidents."
No. Income Cover can generally provide benefits if you're unable to work due to either illness or injury, subject to your policy terms.
"ACC means I don't need Income Cover."
ACC only provides cover for accidental injuries. It generally doesn't provide support if you're unable to work because of an illness, which is where Income Cover can play an important role.
"I'll receive payments as soon as I stop working."
Not necessarily. Your policy's wait period must usually be completed before benefits begin.
FAQs about Income Cover
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This depends on the insurer and your circumstances, but it's typically a percentage of your regular income.
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Benefits can continue until you return to work or until your chosen payment period ends, depending on your policy.
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Yes. Many policies are designed to work alongside ACC, although how benefits are coordinated varies between insurers. It is important to know that ACC is a common offset with Income Cover.
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Anyone who relies on their income to meet everyday living expenses may benefit from considering Income Cover.
Your income helps support everything that's important to you. If you'd like to understand how Income Cover could protect your financial wellbeing, talk to a New Vision Financial Services adviser. We'll help you find cover that's tailored to your needs and gives you confidence for the future.