What Happens Financially If One of You Can’t Work?
Most households rely on a regular income to keep life moving - paying the mortgage, covering bills, supporting children, and planning for the future. But while many people insure their car or home, far fewer think about what would happen financially if one partner suddenly couldn’t work due to illness or injury.
It’s not a comfortable topic, but it’s an important one.
When Injury or Illness Disrupts Income
Injury or illness doesn’t always mean something permanent. It could be:
A serious accident requiring months off work
A health condition that limits your ability to earn
A major illness that requires treatment and recovery time
During this time, expenses don’t stop - but income often does.
Without the right protection, families may face:
Difficulty keeping up with mortgage or rent payments
Increased pressure on the working partner
The need to use savings or KiwiSaver
Added stress during an already challenging time
This is often when people realise how quickly financial pressure can build.
Income Protection: Replacing Your Pay When You Can’t Work
Income protection insurance is designed to help replace a portion of your income if you’re unable to work due to illness or injury.
It can:
Provide regular payments while you recover
Help cover everyday living expenses
Reduce financial stress so you can focus on getting better
For many households, this cover forms the backbone of their financial protection.
Mortgage Repayment Insurance: Keeping the Roof Over Your Head
Your home is usually your biggest financial commitment. Mortgage repayment insurance helps cover mortgage payments if you’re unable to work due to illness or injury.
This type of cover can:
Keep repayments manageable
Protect your home during recovery
Reduce reliance on savings or support from family
It’s about maintaining stability when life becomes uncertain.
Trauma Insurance: Support During Serious Illness
Trauma insurance pays a lump sum if you’re diagnosed with a serious medical condition such as cancer, heart attack or stroke.
This payment can be used however you need, including:
Medical and recovery costs
Time off work to focus on health
Reducing debt
Supporting your family through treatment
It gives flexibility at a time when flexibility matters most.
Mental Health Claims: An Important Part of Income and Mortgage Protection
When people think about insurance claims, they often picture physical injuries or serious illnesses. However, mental health conditions are one of the most common reasons people are unable to work.
Conditions such as anxiety, depression, burnout and stress-related disorders can be just as disruptive as physical illness - and recovery often requires time away from work.
Both income protection and mortgage repayment insurance can include cover for mental health-related claims, provided certain conditions are met.
This means these policies may help:
Replace income while you take time to recover
Keep mortgage payments up to date
Reduce financial pressure during an already challenging period
Allow you to focus on treatment and wellbeing, not money
Mental health challenges can affect anyone, at any stage of life. Having insurance that recognises this provides reassurance that support is available when it’s needed most.
The key is understanding what your policy covers, how claims work, and ensuring your insurance is set up correctly from the start.
Planning Ahead Brings Peace of Mind
No one expects to become ill or injured — but planning for the possibility can make all the difference. Having the right insurance in place means knowing that if the unexpected happens, your family can stay financially secure.
At New Vision Financial Services, we help individuals and couples understand their options and put practical protection in place that suits their lifestyle, goals and budget.
Because protecting your income today protects your future.
Nimalka Perera
Business Development Manager
New Vision Financial Services
Plan your future and let us help you have peace of mind along the way.
