Income protection insurance is primarily created to cover for the loss of the policyholder when he is experiencing temporary incapability because of sickness or accident. With this purpose, it is clear that the benefits that you will get from this type of insurance is not going to be extended to other financial aspects unless stipulated in the rules.

Income protection New Zealand is only going to be responsible in giving you not more than 75% of your monthly income during the days or months of your disability. If you die because of the accident, the insurance company will not be paying for lump sum; this is not part of the contract. But the insurance company will be paying for the days that you were not able to work until your death. This is one of the reasons why you should not compare income protection to life insurance. You need both of these securities in your life. The benefits that you will receive from insurances vary, but one thing is sure; they are all beneficial to your existence.

Now that you are still looking for the best type of security, you can start by purchasing income protection insurance.