Income Protection Insurance

Income Protection insurance

When it comes to protecting your house, car, and contents, it's likely that you have a plan in place. What about your income?

When you add up what you could earn over 20, 30 or even 40 years, it's easy to see that you are your most valuable asset - and that's something worth protecting. It's about looking after what you have now, regardless of what happens in the future.

If you were to have an illness or injury, income protection cover can provide you with regular monthly payments so you don't need to worry about your finances when you should be focussed on regaining your independence.

When can Income Protection help you out?

Income Protection cover is powerful - if you're unable to work because of illness or injury, it can replace a portion of your income. This means you'll still be able to meet your financial commitments and make choices that are important to you.

Sovereign Income Protection options:

Income Protection cover can provide you with a monthly payment to replace a portion of your income.

Mortgage and Income Protection cover can provide you with a monthly payment to replace your contractual mortgage repayments on your residential property, or rent payments.

Overview of Features included

Please note the following table is a guide only, refer to policy wordings for further details.

Feature: Income Protection Cover
Mortgage and 
Income Protection Cover
Recurrent disability benefit
If you're affected by the same disability or injury within 12 months of your recovery, we may waive the waiting period.
Vocational retraining benefit
To help you return to work, you may be eligible for a vocational retraining programme - we'll cover the fee charged by the institution providing the programme.
Back to work
If you can return to work between 12 and 24 months after claiming, we will pay you a lump-sum payment equivalent to 3 times your monthly benefit.
Home modification or equipment support
If you become totally disabled, you may have access to a lump sum payment to help cover the cost of specialised equipment or completing home alterations.
Property special events
In some situations you might want to increase your sum assured. These can be an increase in your current mortgage, or the purchase of a new residential property, a vacation home, or bare block of residential land. In these instances you can increase the sum assured without needing to provide further medical information, (subject to limits).
Bed confinement
If you are confined to bed under full-time care during your wait period, either at home or hospital, you may be eligible for a bed-confinement benefit.
Suspension of cover
If you go on parental leave or leave without pay, you can suspend your cover for up to 12 months. You won't have to go through the complexity of reapplying for cover when you decide to resume cover again. While your cover is suspended, no claim will be payable.
Future insurability
You can apply to increase your sum assured every third year at your policy anniversary. You don't need to provide further medical information, however limits and conditions may apply, and your premium payments may increase. Future Insurability is included only if Claim Indexation is not taken out.
Waiver of premiums
If you are unable to work due to total disability, we will waive your premium payments while your insurance remains in place. This benefit is compulsory with Income Protection cover, but you can choose the wait period.
Enhanced partial disability benefit
When you move from being totally to partially disabled, you can receive a monthly top-up payment paid for up to 12 months while on claim. This is on top of any income from work and the partial disability benefit.
World-wide cover
You're covered anywhere in the world, 24 hours a day.

Download Income Protection Cover customer guide
Download Mortgage and Income Protection Cover customer guide

For both Income Protection and Mortgage and Income Protection Cover, you have some optional features to consider when taking out cover:

  • Retirement Protection - You can keep contributing to your KiwiSaver while you are on a total disability claim. We pay an agreed contribution directly to Inland Revenue and this enables you to continue receiving the member tax credits.

  • Redundancy Cover - If you're made redundant, you'll be covered with monthly payments for up to 6 months.

  • Claim Indexation - Your sum assured will increase every year by the same amount as the CPI, (New Zealand Consumer Price Index). This helps your sum assured stay in line with inflation.

  • Mental Health Limitation - Choosing this option will reduce your premiums but means if you make a claim for mental health, you'll receive payments for only two years throughout the life of your policy.

This option is only available if you choose benefit period to age 65 or 70.

For further information about these and other income protection insurance enhancements, please contact your adviser or refer to the customer guide or policy document.

Other options to think about

Accidental Injury Cover
Short-term financial support, helping you continue daily life while recovering from an accidental injury. Read more

Specialist and diagnostic testing
This benefit can help you access the best specialist care available, and get the diagnostic tests or essential treatment you need. Read more



Disclaimer: The availability of any insurance cover is subject to your application being approved. For full details, refer to the policy document which is available on request from Sovereign. Applications are subject to individual consideration. Special conditions, premiums, maximums and exclusions may apply. The information contained on this website is general in nature and is not intended as advice. Before making any investment, insurance or financial planning decision you should consult a professional adviser. Copies of our disclosure statements are available on request, free of charge.​​
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The information contained on this website is general in nature and is not intended as advice. It may not be relevant to individual circumstances and before making any investment, insurance or financial planning decision; you should consult a professional adviser. Copies of our disclosure statements are available on request, free of charge.​