Income Protection Insurance
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Infinity Loans help working people to protect the income stream that everything else in their financial life depends on — with cover that is built for real life, not ideal conditions.
Everything in your financial life — your mortgage repayments, your savings plan, your children’s school fees, your daily household costs — depends on your ability to earn an income. Most people insure their car, their home, and their health without a second thought. Very few insure the income that makes all of those things possible. Income protection insurance changes that, and it is one of the most important financial decisions a working person can make.
This insurance covers a monthly benefit, normally a proportion of your gross earnings, in case you become incapable of working due to disease or any other injury. This is provided over a certain period known as the defined benefit period; in which case your income cover could run for a defined period to age 65 years.
The amount of money received from your income protection policy will make it easier for you to pay off all the financial obligations you were supposed to be paying had you been in your normal state; such as mortgage/rent, household bills, school fees, and daily expenditure without the need to dip into your savings or change the way your family operates.
Almost everyone involved in gainful employment will require this insurance policy since it can apply to anyone who earns his/her living through effort or expertise. Those whose income sources are more precarious such as the self-employed or owners of businesses will especially find this insurance vital since they lack employee sick leave policies.
Most employed people have some form of sick leave entitlement. But sick leave is finite, and serious illnesses or significant injuries frequently last longer than those entitlements cover. When sick leave runs out, the options available to most households are limited: draw on savings, rely on a partner’s income, apply for government support, or some combination of all three.
None of these options are adequate substitutes for the income that has been lost. Savings are eroded at precisely the time they should be growing. Partners face increased financial pressure that affects the whole household. Government support provides a fraction of what most working New Zealanders need to maintain any reasonable standard of living.
Income protection insurance fills this gap before it opens. It ensures that when something goes wrong medically — and the recovery period extends beyond what your sick leave and short-term savings can cover — there is a consistent, reliable income stream replacing the one you have temporarily lost. That security changes everything about how a family navigates a difficult period.
Income protection does not just replace a pay cheque. It replaces the confidence and stability that a pay cheque represents for everyone in your household.
We explain the difference between agreed value policies — which pay a pre-agreed amount — and indemnity policies, and recommend the right structure for your income type.
The waiting period before your benefit begins affects your premium and your strategy. We help you choose a period that aligns to your existing resources.
We recommend a benefit period that genuinely reflects how long you could face being out of the workforce and unable to earn.
For those without employer sick leave, income protection is not optional. We build cover that reflects the specific income structures of the self-employed.
Income protection is not a single product. It is a category with significant variation in how policies are structured, what they cover, and how they pay out. The right income protection policy for a salaried professional looks different from the right policy for a self-employed tradesperson, a commission-based sales professional, or a business owner whose income fluctuates month to month.
At Infinity Loans, we begin every income protection conversation by understanding exactly how you earn. How is your annual income distributed? How much of that is guaranteed and how much is variable? What are the leaves available to you, and for how long can they support your family if you are unable to earn? What liabilities exist on the basis of your income?
These answers shape the cover we recommend. They determine the benefit amount, the waiting period, the benefit period, and the policy structure. They also inform whether income protection should be held inside or outside superannuation — a decision that has meaningful implications for both the premium and the way the benefit is taxed when paid.
We build a clear picture of your income structure, your financial commitments, and how long your existing resources could sustain your household if your income stopped.
We determine the right benefit amount, waiting period, and benefit period based on your income and financial exposure.
We compare income protection policies across our panel with a focus on policy quality, definition integrity, and premium sustainability.
We place the policy and schedule regular reviews to ensure the cover amount and structure stay aligned to your income as it grows.
At Infinity Loans, we see income protection as the foundational layer of any serious personal insurance strategy. Before life cover, before trauma cover, before mortgage protection — the income that funds all of those things needs to be protected. Because without it, everything else is simply harder.
If you have never seriously reviewed your income protection arrangements, or if you are self-employed without any cover in place, this is the conversation that matters most. Infinity Loans is ready to have it.
Talk to Infinity Loans and find out whether the income that drives your life is properly covered.
Contact Infinity Loans today and let us help you find the right cover for your situation.
