Income protection insurance covers injury and illness. Say for example, you are in New Zealand and have encountered an accident leading to injury then you can claim for income protection New Zealand. The basis for the claim is the inability to resume work due to the injury incurred during the accident. During this period of time, income protection insurance will pay out a tax free income for you.

Income protection insurance is a type of insurance that is not taking into consideration long term incapacity such as unemployment. You first have to be employed and paid before meeting injury or falling into illness before making a claim. Waiting period can be 4, 8, 13, 26 or 52 weeks depending on the plan you have taken. It is therefore important to carefully compare income protection insurance from a certain company to another company’s to better judge which plan is more suitable for your line of work. Such insurance should be able to cover for you until you can get back to normal and resume work. There is no fixed maximum payout cover period for such insurance – just as long as you can get back to work.